📊 CBSH Key Takeaways
Is Commerce Bancshares Inc. /Mo/ (CBSH) a Good Investment?
Commerce Bancshares shows concerning structural profitability challenges with ROE of 3.3% and ROA of 0.4%, significantly below healthy banking standards. The interest coverage ratio of 0.9x indicates operating income barely covers interest expenses, signaling net interest margin compression or rising funding costs. While the balance sheet is fortress-like with minimal debt and strong free cash flow generation, the persistently weak returns on capital and stagnant net income growth (-0.8% YoY) despite EPS growth suggest core business deterioration masked by share buybacks.
Commerce Bancshares shows strong core fundamentals, with high profitability, excellent ROA and ROE for a bank, and substantial free cash flow generation supported by a very clean balance sheet. Revenue growth was strong, but the slight decline in net income suggests some margin pressure or higher costs, so the business looks fundamentally strong rather than flawless. Overall, the company appears financially healthy with good earnings quality and resilient operating performance.
Commerce Bancshares Inc. /Mo/ Key Strengths (CBSH)
- Exceptional free cash flow generation of $678.4M with minimal capex ($6.4M)
- Clean balance sheet with only $1.8M long-term debt and strong $3.8B liquidity position
- Substantial asset base of $35.7B providing market presence and scale
- High profitability with 49.3% operating margin and 38.2% net margin
- Strong balance sheet with minimal long-term debt and solid equity base
- Robust cash generation, with $645.14M in operating cash flow and $592.39M in free cash flow
CBSH Stock Risks: Commerce Bancshares Inc. /Mo/ Investment Risks
- Interest coverage ratio of 0.9x indicates operational income inadequacy relative to interest burden—critical vulnerability for financial institution
- Severely depressed returns: ROE 3.3% and ROA 0.4% well below industry standards (healthy banks target 10%+ ROE, 0.8-1.5% ROA)
- Flat net income (-0.8% YoY) coupled with rising EPS suggests earnings manipulation through buybacks masking operational stagnation
- Net income declined slightly despite strong revenue growth, which may indicate rising costs or normalization in spreads
- Interest coverage of 3.4x is adequate but not especially strong if earnings soften
- Bank fundamentals remain exposed to credit quality deterioration and deposit/funding pressure
Key Metrics to Watch
- Interest coverage ratio trajectory—must improve above 1.5x to signal margin recovery
- Return on equity trend—critical to monitor if management can reverse the 3.3% level
- Net interest margin compression/expansion and interest rate environment exposure
- Net interest margin and net income growth
- Credit quality trends, including charge-offs and nonperforming loans
Commerce Bancshares Inc. /Mo/ (CBSH) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CBSH Profit Margin, ROE & Profitability Analysis
CBSH vs Finance Sector: How Commerce Bancshares Inc. /Mo/ Compares
How Commerce Bancshares Inc. /Mo/ compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Commerce Bancshares Inc. /Mo/ Stock Overvalued? CBSH Valuation Analysis 2026
Based on fundamental analysis, Commerce Bancshares Inc. /Mo/ has mixed fundamental signals relative to the Finance sector in 2026.
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.
Commerce Bancshares Inc. /Mo/ Balance Sheet: CBSH Debt, Cash & Liquidity
CBSH Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Commerce Bancshares Inc. /Mo/'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $3.30 reflects profitable operations.
CBSH Revenue Growth, EPS Growth & YoY Performance
CBSH Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | N/A | $131.6M | $0.93 |
| Q3 2025 | N/A | $138.0M | $1.01 |
| Q2 2025 | N/A | $139.6M | $1.03 |
| Q1 2025 | N/A | $112.7M | $0.82 |
| Q3 2024 | N/A | $120.6M | $0.92 |
| Q2 2024 | N/A | $127.8M | $0.97 |
| Q1 2024 | N/A | $112.7M | $0.86 |
| Q3 2023 | N/A | $120.6M | $0.96 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Commerce Bancshares Inc. /Mo/ Dividends, Buybacks & Capital Allocation
CBSH SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Commerce Bancshares Inc. /Mo/ (CIK: 0000022356)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CBSH
What is the AI rating for CBSH?
Commerce Bancshares Inc. /Mo/ (CBSH) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CBSH's key strengths?
Claude: Exceptional free cash flow generation of $678.4M with minimal capex ($6.4M). Clean balance sheet with only $1.8M long-term debt and strong $3.8B liquidity position. ChatGPT: High profitability with 49.3% operating margin and 38.2% net margin. Strong balance sheet with minimal long-term debt and solid equity base.
What are the risks of investing in CBSH?
Claude: Interest coverage ratio of 0.9x indicates operational income inadequacy relative to interest burden—critical vulnerability for financial institution. Severely depressed returns: ROE 3.3% and ROA 0.4% well below industry standards (healthy banks target 10%+ ROE, 0.8-1.5% ROA). ChatGPT: Net income declined slightly despite strong revenue growth, which may indicate rising costs or normalization in spreads. Interest coverage of 3.4x is adequate but not especially strong if earnings soften.
What is CBSH's revenue and growth?
Commerce Bancshares Inc. /Mo/ reported revenue of $0.0.
Does CBSH pay dividends?
Commerce Bancshares Inc. /Mo/ pays dividends, with $41.9M distributed to shareholders in the trailing twelve months.
Where can I find CBSH SEC filings?
Official SEC filings for Commerce Bancshares Inc. /Mo/ (CIK: 0000022356) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CBSH's EPS?
Commerce Bancshares Inc. /Mo/ has a diluted EPS of $0.96.
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 CBSH's fundamental grade?
Based on our AI fundamental analysis in June 2026, Commerce Bancshares Inc. /Mo/ has a B grade with 75% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is CBSH stock overvalued or undervalued?
Valuation metrics for CBSH: ROE of 3.3% (sector avg: 12%), net margin of N/A (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
What is CBSH's AI grade for 2026?
Our dual AI analysis gives Commerce Bancshares Inc. /Mo/ a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CBSH's free cash flow?
Commerce Bancshares Inc. /Mo/'s operating cash flow is $684.8M, with capital expenditures of $6.4M.
How does CBSH compare to other Finance stocks?
Vs Finance sector averages: Net margin N/A (avg: 25%), ROE 3.3% (avg: 12%), current ratio N/A (avg: 1.2).