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Community Financial System, Inc.. (CBU) Fundamental Analysis & AI Grade 2026

CBU NYSE National Commercial Banks DE CIK: 0000723188
Update Pending • Analysis: May 9, 2026 • SEC Data: 2026-03-31
Combined AI Grade
B
72% Confidence
NEUTRAL
C
72% Conf
A
72% Conf

📊 CBU Key Takeaways

Revenue: $213.3M
Net Margin: 26.8%
Free Cash Flow: $60.3M
Current Ratio: N/A
Debt/Equity: 0.49x
EPS: $1.08
AI Grade: C with 72% confidence
Community Financial System, Inc.. (CBU) receives a B fundamental grade with 72% confidence from our AI analysis based on SEC 10-K filings. With revenue of $213.3M, net profit margin of 26.8%, and return on equity (ROE) of 2.8%, Community Financial System, Inc.. demonstrates mixed fundamentals in the Finance sector. Below is our complete CBU stock analysis for 2026.

Is Community Financial System, Inc.. (CBU) a Good Investment?

Claude

While revenue growth of 17% YoY is solid, net income grew only 0.4%, indicating severe margin compression and operational challenges. The structural returns are dangerously weak for a bank—ROE of 2.8% and ROA of 0.3% are 75-80% below industry norms, signaling either asset quality deterioration or profound operational inefficiency that poses unacceptable shareholder value destruction.

ChatGPT

Community Financial System shows solid core fundamentals with strong operating and net margins, healthy returns on equity and assets for a bank, and good revenue growth. Free cash flow generation and a moderate reported debt-to-equity ratio support financial flexibility, although the very low interest coverage and nearly flat net income versus revenue growth suggest earnings quality should be watched closely.

Community Financial System, Inc.. Key Strengths (CBU)

Claude
  • + Strong revenue growth of 17% YoY demonstrates market positioning and customer demand
  • + Excellent operating margin of 35% and net margin of 26.8% show profitable operations at the income statement level
  • + Solid free cash flow generation of $60.3M with 28.3% FCF margin provides cash-based earnings support
ChatGPT
  • + Strong profitability with 33.7% operating margin and 25.7% net margin
  • + Healthy balance sheet profile with 10.5% ROE, 1.2% ROA, and moderate reported debt-to-equity of 0.49x
  • + Good top-line momentum with revenue up 17.0% YoY and solid free cash flow generation of $233.33M

CBU Stock Risks: Community Financial System, Inc.. Investment Risks

Claude
  • ! Critically low return on equity (2.8%) and return on assets (0.3%) are 75-80% below banking sector norms, indicating severe capital inefficiency or hidden credit losses
  • ! Earnings growth collapsed to 0.4% YoY despite 17% revenue growth, revealing deteriorating profitability per unit of revenue and likely rising loan loss provisions
  • ! Dangerously low interest coverage ratio of 1.6x leaves minimal buffer for interest rate declines or credit deterioration in the loan portfolio
ChatGPT
  • ! Net income grew only 0.4% YoY despite strong revenue growth, indicating margin pressure or higher credit and funding costs
  • ! Interest coverage of 1.4x is weak and leaves limited cushion if funding costs remain elevated
  • ! Bank fundamentals remain sensitive to credit quality deterioration, deposit mix changes, and net interest margin compression

Key Metrics to Watch

Claude
  • * Loan loss provisions as % of revenue and allowance for credit losses coverage ratio—likely culprit behind earnings collapse
  • * Return on equity and return on assets trends—must see material recovery toward 10-15% ROE and 0.8-1.5% ROA to indicate improvement
  • * Non-performing loans and charge-off rates—critical for assessing whether current profitability issues reflect asset quality problems
ChatGPT
  • * Net interest margin and efficiency ratio
  • * Provision for credit losses and nonperforming assets

Community Financial System, Inc.. (CBU) Financial Metrics & Key Ratios

Revenue
$213.3M
Net Income
$57.2M
EPS (Diluted)
$1.08
Free Cash Flow
$60.3M
Total Assets
$17.7B
Cash Position
$572.2M

💡 AI Analyst Insight

The 28.3% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

CBU Profit Margin, ROE & Profitability Analysis

Gross Margin N/A
Operating Margin 35.0%
Net Margin 26.8%
ROE 2.8%
ROA 0.3%
FCF Margin 28.3%

CBU vs Finance Sector: How Community Financial System, Inc.. Compares

How Community Financial System, Inc.. compares to Finance sector averages

Net Margin
CBU 26.8%
vs
Sector Avg 25.0%
CBU Sector
ROE
CBU 2.8%
vs
Sector Avg 12.0%
CBU Sector
Current Ratio
CBU 0.0x
vs
Sector Avg 1.2x
CBU Sector
Debt/Equity
CBU 0.5x
vs
Sector Avg 2.0x
CBU Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

Is Community Financial System, Inc.. Stock Overvalued? CBU Valuation Analysis 2026

Based on fundamental analysis, Community Financial System, Inc.. has mixed fundamental signals relative to the Finance sector in 2026.

Return on Equity
2.8%
Sector avg: 12%
Net Profit Margin
26.8%
Sector avg: 25%
Revenue Growth
N/A
Year-over-year
Debt/Equity
0.49x
Sector avg: 2x

Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.

Community Financial System, Inc.. Balance Sheet: CBU Debt, Cash & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.49x
Debt/Assets
88.6%
Interest Coverage
1.65x
Long-term Debt
$990.2M

CBU Revenue & Earnings Growth: 5-Year Financial Trend

CBU 5-year financial data: Year 2024: Revenue $746.3M, Net Income $188.1M, EPS $3.46. Year 2025: Revenue $818.0M, Net Income $131.9M, EPS $2.45.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Community Financial System, Inc..'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $2.45 reflects profitable operations.

CBU Revenue Growth, EPS Growth & YoY Performance

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
28.3%
Free cash flow / Revenue

CBU Quarterly Earnings & Performance

Quarterly financial performance data for Community Financial System, Inc.. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q1 2026 $196.2M $49.6M $0.93
Q3 2025 $188.9M $43.9M $0.83
Q2 2025 $183.8M $47.9M $0.91
Q1 2025 $177.3M $40.9M $0.76
Q3 2022 $200.0K $45.3M $0.83
Q2 2022 $300.0K $39.8M $0.73
Q1 2022 $300.0K $47.1M $0.86

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Community Financial System, Inc.. Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$71.6M
Cash generated from operations
Stock Buybacks
$15.5M
Shares repurchased (TTM)
Capital Expenditures
$11.3M
Investment in assets
Dividends Paid
$24.8M
Returned to shareholders

CBU SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Community Financial System, Inc.. (CIK: 0000723188)

📋 Recent SEC Filings

Date Form Document Action
Jun 1, 2026 8-K tm2615918d1_8k.htm View →
May 22, 2026 8-K tm2615409d1_8k.htm View →
May 13, 2026 8-K tm2614393d1_8k.htm View →
May 8, 2026 10-Q cbu-20260331x10q.htm View →
May 5, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about CBU

What is the AI rating for CBU?

Community Financial System, Inc.. (CBU) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.

What are CBU's key strengths?

Claude: Strong revenue growth of 17% YoY demonstrates market positioning and customer demand. Excellent operating margin of 35% and net margin of 26.8% show profitable operations at the income statement level. ChatGPT: Strong profitability with 33.7% operating margin and 25.7% net margin. Healthy balance sheet profile with 10.5% ROE, 1.2% ROA, and moderate reported debt-to-equity of 0.49x.

What are the risks of investing in CBU?

Claude: Critically low return on equity (2.8%) and return on assets (0.3%) are 75-80% below banking sector norms, indicating severe capital inefficiency or hidden credit losses. Earnings growth collapsed to 0.4% YoY despite 17% revenue growth, revealing deteriorating profitability per unit of revenue and likely rising loan loss provisions. ChatGPT: Net income grew only 0.4% YoY despite strong revenue growth, indicating margin pressure or higher credit and funding costs. Interest coverage of 1.4x is weak and leaves limited cushion if funding costs remain elevated.

What is CBU's revenue and growth?

Community Financial System, Inc.. reported revenue of $213.3M.

Does CBU pay dividends?

Community Financial System, Inc.. pays dividends, with $24.8M distributed to shareholders in the trailing twelve months.

Where can I find CBU SEC filings?

Official SEC filings for Community Financial System, Inc.. (CIK: 0000723188) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CBU's EPS?

Community Financial System, Inc.. has a diluted EPS of $1.08.

How is the AI analysis conducted?

Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.

What is CBU's fundamental grade?

Based on our AI fundamental analysis in June 2026, Community Financial System, Inc.. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.

Is CBU stock overvalued or undervalued?

Valuation metrics for CBU: ROE of 2.8% (sector avg: 12%), net margin of 26.8% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.

What is CBU's AI grade for 2026?

Our dual AI analysis gives Community Financial System, Inc.. a combined B grade for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.

What is CBU's free cash flow?

Community Financial System, Inc..'s operating cash flow is $71.6M, with capital expenditures of $11.3M. FCF margin is 28.3%.

How does CBU compare to other Finance stocks?

Vs Finance sector averages: Net margin 26.8% (avg: 25%), ROE 2.8% (avg: 12%), current ratio N/A (avg: 1.2).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: May 9, 2026 | Data as of: 2026-03-31 | Powered by Claude AI