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CBU Stock Analysis - COMMUNITY FINANCIAL SYSTEM, INC. AI Rating

CBU NYSE National Commercial Banks DE CIK: 0000723188
Recently Updated • Analysis: Mar 22, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
72% Confidence

📊 CBU Key Takeaways

Revenue: $818.0M
Net Margin: 25.7%
Free Cash Flow: $233.3M
Current Ratio: N/A
Debt/Equity: 0.49x
EPS: $3.97
AI Rating: BUY with 72% confidence

Investment Thesis

Community Financial System demonstrates solid fundamental performance with strong revenue growth of 17% YoY and healthy profitability margins (25.7% net margin). The company maintains a conservative capital structure with a 0.49x debt-to-equity ratio and generates substantial free cash flow of $233.3M, indicating robust operational efficiency and cash generation capability.

CBU Strengths

  • + Strong revenue growth of 17% YoY indicates market expansion and operational momentum
  • + Excellent free cash flow generation of $233.3M with 28.5% FCF margin demonstrates cash conversion efficiency
  • + Conservative leverage at 0.49x debt-to-equity provides financial flexibility and stability
  • + Healthy net profit margin of 25.7% and operating margin of 33.7% show strong cost control
  • + Operating cash flow of $301.9M exceeds net income, indicating quality earnings

CBU Risks

  • ! Weak interest coverage ratio of 1.4x suggests limited cushion to service debt obligations
  • ! ROA of 1.2% is relatively modest for banking sector, indicating lower asset efficiency
  • ! ROE of 10.5% is moderate and below typical banking sector benchmarks
  • ! High insider trading activity (35 Form 4 filings in 90 days) warrants monitoring for insider sentiment
  • ! Long-term debt of $990.2M represents significant obligations relative to equity base

Key Metrics to Watch

CBU Financial Metrics

Revenue
$818.0M
Net Income
$210.5M
EPS (Diluted)
$3.97
Free Cash Flow
$233.3M
Total Assets
$17.3B
Cash Position
$301.8M

💡 AI Analyst Insight

The 28.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.

CBU Profitability Ratios

Gross Margin N/A
Operating Margin 33.7%
Net Margin 25.7%
ROE 10.5%
ROA 1.2%
FCF Margin 28.5%

CBU vs Finance Sector

How COMMUNITY FINANCIAL SYSTEM, INC. compares to Finance sector averages

Net Margin
CBU 25.7%
vs
Sector Avg 25.0%
CBU Sector
ROE
CBU 10.5%
vs
Sector Avg 12.0%
CBU Sector
Current Ratio
CBU 0.0x
vs
Sector Avg 1.2x
CBU Sector
Debt/Equity
CBU 0.5x
vs
Sector Avg 2.0x
CBU Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

CBU Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.49x
Debt/Assets
88.4%
Interest Coverage
1.43x
Long-term Debt
$990.2M

CBU 5-Year Financial Trend

CBU 5-year financial data: Year 2024: Revenue $746.3M, Net Income $188.1M, EPS $3.46. Year 2025: Revenue $818.0M, Net Income $131.9M, EPS $2.45.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: COMMUNITY FINANCIAL SYSTEM, INC.'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $2.45 reflects profitable operations.

CBU Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
28.5%
Free cash flow / Revenue

CBU Quarterly Performance

Quarterly financial performance data for COMMUNITY FINANCIAL SYSTEM, INC. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $188.9M $43.9M $0.83
Q2 2025 $183.8M $47.9M $0.91
Q1 2025 $177.3M $40.9M $0.76
Q3 2022 $200.0K $45.3M $0.83
Q2 2022 $300.0K $39.8M $0.73
Q1 2022 $300.0K $47.1M $0.86

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

CBU Capital Allocation

Operating Cash Flow
$301.9M
Cash generated from operations
Stock Buybacks
$11.2M
Shares repurchased (TTM)
Capital Expenditures
$68.5M
Investment in assets
Dividends Paid
$97.6M
Returned to shareholders

CBU SEC Filings

Access official SEC EDGAR filings for COMMUNITY FINANCIAL SYSTEM, INC. (CIK: 0000723188)

📋 Recent SEC Filings

Date Form Document Action
Mar 19, 2026 4 xslF345X06/form4.xml View →
Mar 19, 2026 4 xslF345X06/form4.xml View →
Mar 19, 2026 4 xslF345X06/form4.xml View →
Mar 19, 2026 4 xslF345X06/form4.xml View →
Mar 19, 2026 4 xslF345X06/form4.xml View →

Frequently Asked Questions about CBU

What is the AI rating for CBU?

COMMUNITY FINANCIAL SYSTEM, INC. (CBU) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are CBU's key strengths?

Strong revenue growth of 17% YoY indicates market expansion and operational momentum. Excellent free cash flow generation of $233.3M with 28.5% FCF margin demonstrates cash conversion efficiency.

What are the risks of investing in CBU?

Weak interest coverage ratio of 1.4x suggests limited cushion to service debt obligations. ROA of 1.2% is relatively modest for banking sector, indicating lower asset efficiency.

What is CBU's revenue and growth?

COMMUNITY FINANCIAL SYSTEM, INC. reported revenue of $818.0M.

Does CBU pay dividends?

COMMUNITY FINANCIAL SYSTEM, INC. pays dividends, with $97.6M distributed to shareholders in the trailing twelve months.

Where can I find CBU SEC filings?

Official SEC filings for COMMUNITY FINANCIAL SYSTEM, INC. (CIK: 0000723188) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is CBU's EPS?

COMMUNITY FINANCIAL SYSTEM, INC. has a diluted EPS of $3.97.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 22, 2026 | Data as of: 2025-12-31 | Powered by Claude AI