UMB Financial (UMBF) AI Stock Analysis

• Market Cap: $9.30B
• Dividend Yield: 1.31%
• Average Volume (3M): 513.44K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.13
• Revenue Growth: 30.40%
• EPS Growth: 12.40%
• Country: US
• Employees: 3,698
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 2.96
• Shares Outstanding: 75,928,250
• 10 Day Avg. Volume: 562,961
• 30 Day Avg. Volume: 513,437
• PEG Ratio: 0.49
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 2.09
• P/FCF Ratio: 27.36
• Enterprise Value/Market Cap: 0.11
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: 1.37
• 1Y Price Target: $133.44
• Price Target Upside: 8.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 80 Outperform
• Price Target: $145.00 ▲(18.33% Upside)

UMB Financial's strong financial performance and positive earnings call sentiment are the primary drivers of the high score. The technical analysis suggests bullish momentum, though overbought signals warrant caution. Valuation is reasonable but not compelling, slightly tempering the overall score.

Positive Factors

Revenue Growth

The significant growth in loans and deposits indicates strong market demand and effective business strategies, supporting long-term revenue expansion.

Successful Acquisition Integration

Successful integration of acquisitions like Heartland enhances operational efficiency and market reach, contributing to sustained competitive advantage.

Strong Cash Generation

Robust free cash flow growth highlights UMB's ability to generate cash, ensuring liquidity for investments and shareholder returns.

Negative Factors

Declining ROE

A declining ROE may indicate challenges in generating returns from equity, potentially impacting investor confidence and long-term growth prospects.

Acquisition-related Expenses

High acquisition-related expenses can strain profitability and cash flow, posing risks to financial stability if not managed effectively.

Potential Margin Pressure

Potential margin pressure from deposit cost fluctuations could affect profitability, requiring strategic management to maintain financial performance.

UMB Financial Business Overview & Revenue Model

Company Description

UMB Financial Corporation operates as the bank holding company for the UMB Bank that provides various banking and other financial services. The Commercial Banking segment provides commercial loans and credit card; commercial real estate financing; letters of credit; loan syndication, and consultative service; various business solutions including asset-based lending, accounts receivable financing, mezzanine debt, and minority equity investment; and treasury management service, such as depository service, account reconciliation, cash management tool, accounts payable and receivable solution, electronic fund transfer and automated payment, controlled disbursement, lockbox service, and remote deposit capture service. The Institutional Banking segment offers asset management and healthcare service provided to institutional client; and fund administration and accounting, investor service and transfer agency, marketing and distribution, custody, alternative investment service, fixed income sale, trading and underwriting, and corporate trust and escrow service, as well as institutional custody service. This segment also provides healthcare payment solution includes custodial service for health saving accounts and private label, multipurpose debit cards to insurance carriers, third-party administrator, software companies, employers, and financial institutions. The Personal Banking segment offers deposit account, retail credit card, private banking, installment loan, home equity line of credit, residential mortgage, and small business loan, as well as internet banking, ATM network, private banking, brokerage and insurance service, and advisory and trust service. It operates through a network of branches and offices in the states of Missouri, Kansas, Colorado, Illinois, Oklahoma, Texas, Arizona, Nebraska, Iowa, Pennsylvania, South Dakota, Indiana, Utah, Minnesota, California, and Wisconsin. The company was founded in 1913 and is headquartered in Kansas City, Missouri.

How the Company Makes Money

UMB Financial generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from service fees and asset management. Key revenue streams include net interest income from the lending operations in commercial and consumer banking, fees from treasury management services, and wealth management services that include trust and investment advisory fees. The company also benefits from its strategic partnerships with businesses and institutions, which enhance its service offerings and client base, contributing to its overall earnings.

UMB Financial Financial Statement Overview

Summary

UMB Financial demonstrates strengths in cost management and a stable balance sheet with low leverage. However, challenges include inconsistent revenue growth and free cash flow, impacting the company's financial flexibility.

Income Statement

UMB Financial shows a strong gross profit margin indicating effective cost management, but the net profit margin has been fluctuating due to varying net income. The revenue growth rate is inconsistent, with a recent decline in TTM revenues compared to the previous annual report, which needs monitoring. EBIT and EBITDA margins have been absent or inconsistent, impacting profitability analysis.

Balance Sheet

The company maintains a relatively low debt-to-equity ratio, suggesting prudent financial leverage. Return on equity is satisfactory, but improvement is needed to enhance shareholder value. The equity ratio indicates a stable asset base relative to equity, although there could be potential risks if liabilities increase significantly.

Cash Flow

The cash flow statement reveals inconsistent free cash flow growth, with a recent decrease in free cash flow. The operating cash flow to net income ratio is relatively healthy, but the free cash flow to net income ratio indicates the need for improved cash flow conversion. Attention is needed to ensure healthy cash flow growth and liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.22B	2.64B	2.24B	1.58B	1.24B	1.30B
Gross Profit	1.76B	1.41B	1.28B	1.32B	1.18B	1.09B
EBITDA	741.60M	594.04M	480.32M	586.03M	484.81M	401.69M
Net Income	528.37M	441.24M	350.02M	431.68M	353.02M	286.50M
Balance Sheet
Total Assets	71.76B	50.41B	44.01B	38.51B	42.69B	33.13B
Cash, Cash Equivalents and Short-Term Investments	11.38B	16.33B	12.68B	8.69B	21.23B	12.84B
Total Debt	3.37B	3.00B	3.50B	2.60B	3.51B	2.59B
Total Liabilities	64.47B	46.94B	40.91B	35.85B	39.55B	30.11B
Stockholders Equity	7.29B	3.47B	3.10B	2.67B	3.15B	3.02B
Cash Flow
Free Cash Flow	665.62M	201.08M	445.69M	717.84M	500.39M	313.38M
Operating Cash Flow	705.18M	225.29M	472.60M	769.55M	534.08M	373.60M
Investing Cash Flow	-3.64B	-3.26B	-1.27B	-3.85B	-4.24B	-4.49B
Financing Cash Flow	8.92B	5.96B	4.77B	-4.58B	9.42B	5.95B

UMB Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 122.54
• 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 UMBF, the sentiment is Positive. The current price of 122.54 is above the 20-day moving average (MA) of 121.85, above the 50-day MA of 115.16, and above the 200-day MA of 108.52, indicating a bullish trend. The MACD of 1.88 indicates Positive momentum. The RSI at 58.55 is Neutral, neither overbought nor oversold. The STOCH value of 55.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for UMBF.

UMB Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMBF	80 Outperform	$9.30B	14.07	10.05%	1.31%	30.40%	12.40%
BPOP	79 Outperform	8.65B	12.42	12.11%	2.23%	6.27%	45.08%
WTFC	79 Outperform	9.04B	12.77	10.24%	1.44%	4.74%	10.10%
CMA	75 Outperform	8.98B	13.43	10.57%	4.07%	-8.62%	15.37%
ONB	74 Outperform	8.67B	13.14	6.99%	2.53%	15.94%	-0.47%
ZION	72 Outperform	8.67B	10.71	12.80%	2.96%	2.64%	32.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

UMB Financial Corporate Events

UMB Financial Announces Redemption of Subordinated Notes

UMB Financial Corporation announced the redemption of its 3.70% Fixed-to-Fixed Rate Subordinated Notes due 2030, effective September 17, 2025. This move involves redeeming all outstanding notes at their principal amount plus accrued interest, impacting the company’s financial obligations and potentially its market positioning.

UMB Financial Reports Strong Q2 2025 Earnings Growth

On July 29, 2025, UMB Financial Corporation announced its second quarter 2025 financial results, highlighting a significant increase in net income available to common shareholders to $215.4 million, a 112.5% rise compared to the previous year. This growth was driven by strong balance sheet expansion, improved asset quality, and successful integration of the Heartland Financial acquisition. The company also declared dividends for both common and preferred stock, reflecting its robust financial performance and commitment to shareholder returns.

UMB Financial Redeems Series A Preferred Stock

On July 15, 2025, UMB Financial Corporation filed a Termination of Certificate of Designation to eliminate its 7.00% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, from its Restated Articles of Incorporation. On the same date, the company completed the redemption of all outstanding shares of this Series A Preferred Stock, impacting its capital structure and potentially its financial strategy.

UMB Financial Issues New Preferred Stock Series B

On June 12, 2025, UMB Financial Corporation issued 12,000,000 depositary shares, each representing a 1/400th ownership interest in a share of 7.750% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. This issuance was part of a Deposit Agreement with Computershare Trust Company, N.A. and Computershare Inc. The Certificate of Designation, filed on June 11, 2025, and effective June 12, 2025, outlines the rights and restrictions associated with the Series B Preferred Stock, impacting the company’s dividend and stock repurchase policies.

UMB Financial Announces Redemption of Preferred Stock

On June 12, 2025, UMB Financial Corporation announced it will redeem all outstanding shares of its 7.000% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, at $10,000 per share. The redemption, set for July 15, 2025, will cease dividend accruals on the shares, impacting stakeholders holding the Series A Preferred Stock.