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Cardinal Financial Corp

A company named Cullen/Frost Bankers, Ltd. (CFNL) is a publicly traded regional southeast bank with the ticker symbol "CFNL." San Antonio, Texas, serves as the company's headquarters. With assets totaling $41.3 billion, it is also one of the largest banks in Texas and offers a wide range of financial products to individuals, businesses, and other organizations.

Cullen/Frost has over 150 locations across Texas, and its primary business lines include consumer and commercial banking, treasury management, and wealth management. Additionally, the company provides airport branch locations throughout the southwest and Chicago. Based on third-quarter 2u22 earnings, Frost had $43 billion in assets, $29.8 billion in loans, and 338,866,680 shares outstanding.

As of May 2022, the company has increased its quarterly cash dividend to $0.23 per common share, amounting to $0.92 per share on an annual basis. Frost returned around $384 million to shareholders through dividends in 2021. There has been $20 million or so available for expansion through new branches and internal growth initiatives. The amount of shares bought back since 2017 is $740 million. At a 0.90% ratio, the dividend yield is higher than the 0.66% yield for the market as a whole, and it is predicted that in 10 years the dividend will double every 2 years.

Cullen/Frost Bankers' 2022 full-year earnings are predicted to be $8.05 per share, with an increase of 12.02% from the last year. For the year ending December 31, 2023, earnings are expected to increase to $8.75 per share. The predicted growth rate is determined by first-quarter 2022 results.

Analysts predict that in the upcoming years, Cullen/Frost Bankers' revenue growth would remain between 10% and 11%. The long-term growth rate may reach 10%. The business will continue to be positively impacted in 2023 by higher interest rates, loan growth, increasing non-interest income, and buybacks. A dividend yield of 0.90% is also appealing, especially given the business's cheap price-to-earnings ratio.

Wall Street analysts have given Cullen/Frost Bankers a buy rating, with a target price of $110.60. The stock is currently trading at $93.86, which indicates that it is oversold. The stock offers significant upside potential with a possible gain of 17.88%.

Although past performance is not a guarantee of future results, Cullen/Frost Bankers has outperformed the market consistently since the great recession of 2009, especially since the pandemic bottom in March 2020. Cullen/Frost Bankers is trading at 1.72 times tangible book value after dropping from a high of $141.93 on May 8, 2019. Considering that the pandemic-related shutdowns occurred in March 2000, this amount represents a discount of more than 31%. This stock can be used to store value and participate in buy-and-hold strategies.

Overall, Cullen/Frost Bankers appears to be a wise long-term investment due to excellent profitability and solid financial health.