Community Bank System (CBU) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: 3.15%
• Average Volume (3M): 249.63K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 0.98
• Revenue Growth: 11.95%
• EPS Growth: 14.53%
• Country: US
• Employees: 2,730
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.04
• Shares Outstanding: 52,857,080
• 10 Day Avg. Volume: 191,621
• 30 Day Avg. Volume: 249,627
• PEG Ratio: 0.44
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 3.46
• P/FCF Ratio: 14.69
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 3.75
• Enterprise Value/Gross Profit: 4.85
• Enterprise Value/Ebitda: 13.06
• 1Y Price Target: $64.50
• Price Target Upside: 9.77% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $68.00 ▲(15.72% Upside)

Community Bank System demonstrates strong financial performance and positive technical indicators, supported by a favorable earnings call. The valuation is reasonable, but not significantly undervalued. The company's strategic initiatives and consistent growth contribute positively to its overall score.

Positive Factors

Revenue Growth

Consistent revenue growth through net interest income indicates strong market demand and effective interest rate management, supporting long-term financial stability.

Strategic Expansion

The strategic branch acquisition enhances market presence and liquidity, positioning the company for future growth without diluting shareholder value.

Insurance Services Growth

Growth in insurance services diversifies revenue streams and boosts profitability, strengthening the company's financial resilience.

Negative Factors

Rising Debt Levels

Increasing debt levels may strain financial flexibility and cash flow, posing risks to long-term stability and operational agility.

Provision for Credit Losses

Higher provisions for credit losses suggest potential asset quality issues, which could impact profitability and require careful risk management.

Increased Non-Interest Expenses

Rising non-interest expenses, driven by higher salaries and restructuring charges, may pressure margins and reduce operational efficiency.

Community Bank System Business Overview & Revenue Model

Company Description

Community Bank System, Inc. operates as the bank holding company for Community Bank, N.A. that provides various banking and other financial services to retail, commercial, and municipal customers. It operates through three segments: Banking, Employee Benefit Services, and All Other. The company offers various deposits products, such as checking, savings, and money market deposit accounts, as well as time deposits. It also provides loans, including consumer mortgages; general purpose commercial and industrial loans, and mortgages on commercial properties; paycheck protection program loans; installment loans that are originated through selected dealerships and are secured by automobiles, marine, and other recreational vehicles; personal installment loans and lines of credit for consumers; and home equity products. In addition, the company offers broker-dealer and investment advisory; cash management, investment, and treasury services; asset management; and employee benefit services, as well as operates as a full-service insurance agency that offers personal and commercial lines of insurance, and other risk management products and services. Further, it provides contribution plan administration, employee benefit trust, collective investment fund, retirement plan administration, fund administration, transfer agency, actuarial and benefit consulting, VEBA/HRA, and health and welfare consulting services. Additionally, the company offers wealth management, retirement planning, higher educational planning, fiduciary, risk management, trust, and personal financial planning services; and investment alternatives, including stocks, bonds, mutual funds, and advisory products, as well as master recordkeeping services. As of January 24, 2022, it operated approximately 215 customer facilities across Upstate New York, Northeastern Pennsylvania, Vermont, and Western Massachusetts. Community Bank System, Inc. was founded in 1866 and is headquartered in DeWitt, New York.

How the Company Makes Money

Community Bank System generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the difference between interest earned on loans and interest paid on deposits and borrowings, which constitutes the majority of their total revenue. Key revenue streams include interest from commercial, residential, and consumer loans, as well as service fees from deposit accounts. Additionally, non-interest income is generated from various sources such as wealth management services, insurance sales, and transaction fees. The company has established partnerships with financial technology firms to enhance its service offerings, which also contributes to its earnings by attracting a broader customer base and increasing transaction volumes.

Community Bank System Financial Statement Overview

Summary

Community Bank System exhibits strong financial health with consistent revenue and profit growth, efficient cost management, and a balanced capital structure. The company has shown resilience in cash flow generation, although there are minor concerns regarding cash conversion.

Income Statement

Community Bank System has demonstrated consistent revenue growth with a TTM revenue growth rate of 1.66%. The gross profit margin remains strong at 77.35%, indicating efficient cost management. The net profit margin is healthy at 19.91%, showing profitability. However, there is a slight decline in EBITDA margin from the previous year, which could indicate rising operational costs.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.47, reflecting a balanced approach to leveraging. The return on equity is solid at 10.72%, indicating effective use of equity capital. The equity ratio is stable, suggesting a strong capital structure. However, the decrease in total debt over the past year is a positive sign of improving financial health.

Cash Flow

The free cash flow growth rate is impressive at 132.9%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low, suggesting potential issues with cash conversion. However, the free cash flow to net income ratio is robust at 83.25%, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	977.41M	940.71M	755.98M	702.45M	633.65M	617.28M
Gross Profit	756.01M	723.53M	640.67M	664.58M	629.49M	582.19M
EBITDA	280.58M	265.36M	196.58M	270.74M	271.51M	236.72M
Net Income	194.64M	182.48M	131.92M	188.08M	189.69M	164.68M
Balance Sheet
Total Assets	16.67B	16.39B	15.56B	15.84B	15.55B	13.93B
Cash, Cash Equivalents and Short-Term Investments	2.69B	508.96M	3.11B	4.36B	6.81B	5.19B
Total Debt	894.46M	998.87M	765.20M	1.14B	329.88M	371.29M
Total Liabilities	14.78B	14.62B	13.86B	14.28B	13.45B	11.83B
Stockholders Equity	1.88B	1.76B	1.70B	1.55B	2.10B	2.10B
Cash Flow
Free Cash Flow	198.80M	221.57M	209.84M	201.68M	189.17M	164.70M
Operating Cash Flow	238.79M	242.28M	228.42M	214.60M	202.55M	179.48M
Investing Cash Flow	-633.67M	-835.62M	335.78M	-2.14B	-1.53B	-398.72M
Financing Cash Flow	430.63M	599.38M	-583.13M	259.22M	1.56B	1.66B

Community Bank System Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBU, the sentiment is Positive. The current price of 58.76 is below the 20-day moving average (MA) of 59.29, above the 50-day MA of 57.58, and above the 200-day MA of 57.79, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 49.22 is Neutral, neither overbought nor oversold. The STOCH value of 21.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBU.

Community Bank System Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBU	78 Outperform	$3.11B	16.04	10.91%	3.15%	11.95%	14.53%
WSBC	75 Outperform	$3.15B	19.72	4.25%	4.51%	30.52%	-21.64%
WSFS	72 Outperform	$3.02B	11.81	10.32%	1.19%	0.30%	1.46%
TOWN	69 Neutral	$2.79B	14.93	8.07%	3.02%	8.34%	14.44%
FHB	68 Neutral	$3.07B	12.71	9.40%	4.23%	-2.56%	12.05%
SFNC	68 Neutral	$2.81B	15.29	4.57%	4.37%	-0.30%	6.05%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Community Bank System Corporate Events

Community Bank System Announces Leadership Transition

Community Financial System, Inc. announced that Jeffrey M. Levy will retire from his role as Senior Vice President and Chief Banking Officer of Community Bank, N.A., effective December 31, 2025. Levy, who has been instrumental in the bank’s commercial lending growth and regional expansion, will be succeeded by Matthew Durkee, currently the President of Commercial Banking, starting January 1, 2026.