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Cullen Frost Bankers - AI Stock Analysis

Analysis generated August 12, 2025

Cullen Frost Bankers, headquartered in San Antonio, Texas, is a financial holding company and a leading provider of banking services in the United States. With a history that dates back to 1868, the company offers a broad range of products and services including commercial and consumer banking, investment and mobile banking, and trust and wealth management. Through its subsidiary, Frost Bank, Cullen Frost Bankers operates numerous locations throughout Texas, serving both individuals and businesses.

Fundamental Analysis

The revenue of Cullen Frost Bankers for the last quarter was $468 million. This represents a significant decrease of 165.97% compared to the prior quarter, indicating a need for concern. Compared to the same quarter last year, there was a decrease of 166.13%. These figures highlight potential challenges in revenue generation.

However, net income stands at $157 million for the most recent quarter, marking an increase of 4.03% from the previous quarter and a 7.91% rise year-over-year. This positive trend suggests resilience in profit-making despite revenue challenges.

Additionally, EBITDA for the last quarter was an impressive $691 million, showing a substantial increase of 243.81% over the prior quarter, and a 253.27% rise year-over-year. Such robust EBITDA growth indicates effective cost management and operational efficiency.

The current Price-to-Earnings (P/E) ratio of 13.26 is within a normal range. This P/E ratio suggests that the stock is neither overvalued nor undervalued, and is trading at a multiple that is in line with industry norms.

Technical Analysis

Today's stock price is $124.09, which is a decrease of 9.02% compared to a month ago, suggesting short-term concerns. However, compared to a year ago, the stock price has risen by 20.17%, indicating a strong long-term growth trajectory.

The trend is currently bearish. The current Simple Moving Average (SMA10) is 123.70, slightly lower than the previous SMA10 of 123.71, suggesting a potential downward trend. With a Relative Strength Index (RSI) of 67.4, the stock is currently in a neutral condition, not indicating oversold or overbought status.

Alternative Data Analysis

Analysing job postings and employee sentiment, Cullen Frost Bankers has 135 open positions, which is up by 8% in the last couple of months. This suggests growth and expansion, which is a healthy sign for the company.

Furthermore, 87% of employees have a positive outlook on the company's business prospects, reinforcing a strong internal business confidence.

In terms of customer acquisition, Cullen Frost Bankers has seen an uptick in its online presence, with an estimated 1.2 million visitors to their webpage. This represents a 16% increase over the last couple of months, indicating potential growth in customer interest.

Customer engagement on social media platforms shows mixed results. Their Instagram account has 12,000 followers, a 3% increase in recent months, which reflects rising interest. However, their Twitter page has remained stagnant at 20,000 followers, showing no growth.

The AI score from AltIndex, which incorporates fundamental, technical, and alternative data, is 75. This score is a strong indicator and represents a buy signal.

Conclusion

Cullen Frost Bankers offers a mixed picture based on the analysis conducted. While the revenue figures are concerning, solid profitability and EBITDA growth indicate a well-run company. The current stock price shows resilience with a positive long-term trend, despite recent short-term declines. The alternative data suggests a company on the upbeat with rising employee and customer sentiment. Given the AI score of 75, a recommendation can be made to consider the stock as a potential buy, especially for long-term investors looking for a stable financial services company with a proven track record and growth potential.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.