Commerce Bancshares (CBSH): Analyzing Valuation Following Recent Drop in Share Price
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 17 2025
0mins
Should l Buy CBSH?
Source: Yahoo Finance
Stock Performance: Commerce Bancshares (CBSH) shares have declined 11% over the past month, with a year-to-date return of -15.1%, raising concerns about its valuation amidst mixed signals from the banking sector.
Valuation Insights: The stock's price-to-earnings ratio of 12.6x is higher than industry averages, suggesting investor optimism about future earnings, while a discounted cash flow analysis indicates the stock may actually be undervalued at its current price of $52.40.
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Analyst Views on CBSH
Wall Street analysts forecast CBSH stock price to rise
6 Analyst Rating
0 Buy
6 Hold
0 Sell
Hold
Current: 51.130
Low
55.00
Averages
61.83
High
71.00
Current: 51.130
Low
55.00
Averages
61.83
High
71.00
About CBSH
Commerce Bancshares, Inc. is a regional bank holding company offering banking, payment solutions, wealth management and securities brokerage through its subsidiaries. The Company’s subsidiary, Commerce Bank (the Bank), operates full-service banking facilities across the Midwest, including the St. Louis and Kansas City metropolitan areas, Springfield, Central Missouri, Central Illinois, Wichita, Tulsa, Oklahoma City, and Denver. It also maintains commercial offices in Dallas, Houston, Cincinnati, Nashville, Des Moines, Indianapolis, and Grand Rapids and wealth offices in Dallas, Houston, Naples, Arizona and South Carolina. Its segments include Commercial, Consumer, and Wealth. The Commercial segment provides corporate lending, leasing, and international services, along with business and governmental deposit products and commercial cash management services. The Consumer segment consists of various consumer loan and deposit products offered through its retail branch networks.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Commerce Bancshares Q1 Financial Highlights
- Earnings Beat: Commerce Bancshares reported a Q1 GAAP EPS of $0.96, surpassing expectations by $0.14, indicating a robust earnings capacity that may bolster investor confidence.
- Stable Revenue Growth: The company achieved revenue of $475.69 million in Q1, reflecting an 11.1% year-over-year increase, aligning with market expectations and demonstrating resilience in its business operations.
- Significant Asset Management Increase: Assets under administration grew by $14.9 billion, or 19.5% year-over-year, highlighting increased client trust and market share expansion, which enhances the company's competitive position.
- Loan and Deposit Growth: Average deposits rose by $2.1 billion, or 8.2%, to $27.7 billion, while average loan balances increased by $2.7 billion, or 15.2%, showcasing the company's active engagement in the credit market.
See More
Commerce Bancshares Reports Q1 Profit Growth
- Profit Performance: Commerce Bancshares reported a Q1 net profit of $141.62 million, slightly up from $140.66 million last year, indicating stability in the company's profitability.
- Earnings Per Share: The earnings per share stood at $0.96, down from $1.01 a year ago, yet still reflecting the company's competitive position in the market.
- Revenue Growth: The company achieved revenues of $396.51 million in Q1, a 6.1% increase from $373.62 million last year, showcasing strong revenue generation capabilities.
- Market Outlook: Despite the decline in EPS, the revenue growth supports the company's future profitability, demonstrating resilience in the current economic environment.
See More
Commerce Bancshares Reports Q1 Earnings Growth
- Strong Earnings Performance: Commerce Bancshares reported earnings of $0.96 per share for Q1 2026, a 3.2% increase from $0.93 in the same quarter last year, indicating sustained profitability despite a decline from $1.01 in the previous quarter, reflecting intensified market competition.
- Optimized Revenue Structure: Net interest income for the first quarter was $299.8 million, up $16.7 million from the prior quarter, primarily driven by increased loan balances from the FineMark acquisition, demonstrating effective asset-liability management.
- Growth in Non-Interest Income: Non-interest income reached $175.9 million, a 10.6% year-over-year increase, with trust fees rising by 25.5%, showcasing strong performance in wealth management and enhancing the company's competitive position in the market.
- Capital Repurchase Strategy: The company repurchased over $84 million of common stock this quarter, reflecting its commitment to shareholder returns while maintaining a conservative capital posture that provides flexibility for future growth.
See More
Commerce Bancshares Earnings Preview
- Revenue Growth Expectation: Commerce Bancshares is projected to achieve a year-on-year revenue growth of 10.9% this quarter, improving from last year's 7.5% growth, indicating the company's robust performance and growth potential in the market.
- Last Quarter Performance Review: Last quarter, Commerce Bancshares reported revenues of $452 million, up 6.5% year-on-year, although the earnings per share (EPS) narrowly beat analyst expectations, suggesting strong revenue performance but challenges in profitability.
- Positive Market Sentiment: Over the past month, regional bank stocks have risen by an average of 9.9%, with Commerce Bancshares increasing by 6.1%, reflecting investor confidence and optimism in the market regarding the company.
- Analyst Price Target: Analysts currently set an average price target of $58.63 for Commerce Bancshares, compared to its current share price of $51.12, indicating potential upside and further enhancing investor buy-in sentiment.
See More
Waterford Advisors Establishes New Position in Commerce Bancshares
- New Investment Disclosure: On February 19, 2026, Waterford Advisors, LLC disclosed a new position in Commerce Bancshares by acquiring 44,863 shares in the fourth quarter, with an estimated trade value of $2.58 million, reflecting confidence in the bank's prospects.
- Position Proportion Analysis: This investment represents 1.0% of Waterford Advisors' 13F reportable assets under management as of December 31, 2025, indicating a strategic allocation within its diversified portfolio.
- Stock Performance: As of February 25, 2026, shares of Commerce Bancshares were priced at $53.32, down 15% over the past year and underperforming the S&P 500 by 27 percentage points, which may affect investor sentiment.
- Capital Adequacy Advantage: Commerce Bancshares reported a Tier 1 common risk-based capital ratio of 17.46%, ranking second among the top 50 U.S. banks, demonstrating its ability to withstand economic volatility and attracting investors seeking stable returns.
See More
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced a quarterly dividend of $0.275 per share, reflecting a 5% increase from the previous $0.262, marking the 58th consecutive year of dividend growth, which underscores the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and bolstering investor confidence.
- Asset Scale: As of December 31, 2025, Commerce Bancshares reported total assets of $32.9 billion, and as a regional bank holding company, its robust asset base supports ongoing dividend payments.
- Acquisition Expansion: The company completed its acquisition of FineMark Holdings, Inc. on January 1, 2026, enhancing its private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, demonstrating its strategic intent to expand market reach.
See More
Commerce Bancshares Q1 Financial Highlights
- Earnings Beat: Commerce Bancshares reported a Q1 GAAP EPS of $0.96, surpassing expectations by $0.14, indicating a robust earnings capacity that may bolster investor confidence.
- Stable Revenue Growth: The company achieved revenue of $475.69 million in Q1, reflecting an 11.1% year-over-year increase, aligning with market expectations and demonstrating resilience in its business operations.
- Significant Asset Management Increase: Assets under administration grew by $14.9 billion, or 19.5% year-over-year, highlighting increased client trust and market share expansion, which enhances the company's competitive position.
- Loan and Deposit Growth: Average deposits rose by $2.1 billion, or 8.2%, to $27.7 billion, while average loan balances increased by $2.7 billion, or 15.2%, showcasing the company's active engagement in the credit market.
See More
Commerce Bancshares Reports Q1 Profit Growth
- Profit Performance: Commerce Bancshares reported a Q1 net profit of $141.62 million, slightly up from $140.66 million last year, indicating stability in the company's profitability.
- Earnings Per Share: The earnings per share stood at $0.96, down from $1.01 a year ago, yet still reflecting the company's competitive position in the market.
- Revenue Growth: The company achieved revenues of $396.51 million in Q1, a 6.1% increase from $373.62 million last year, showcasing strong revenue generation capabilities.
- Market Outlook: Despite the decline in EPS, the revenue growth supports the company's future profitability, demonstrating resilience in the current economic environment.
See More
Commerce Bancshares Reports Q1 Earnings Growth
- Strong Earnings Performance: Commerce Bancshares reported earnings of $0.96 per share for Q1 2026, a 3.2% increase from $0.93 in the same quarter last year, indicating sustained profitability despite a decline from $1.01 in the previous quarter, reflecting intensified market competition.
- Optimized Revenue Structure: Net interest income for the first quarter was $299.8 million, up $16.7 million from the prior quarter, primarily driven by increased loan balances from the FineMark acquisition, demonstrating effective asset-liability management.
- Growth in Non-Interest Income: Non-interest income reached $175.9 million, a 10.6% year-over-year increase, with trust fees rising by 25.5%, showcasing strong performance in wealth management and enhancing the company's competitive position in the market.
- Capital Repurchase Strategy: The company repurchased over $84 million of common stock this quarter, reflecting its commitment to shareholder returns while maintaining a conservative capital posture that provides flexibility for future growth.
See More
Commerce Bancshares Earnings Preview
- Revenue Growth Expectation: Commerce Bancshares is projected to achieve a year-on-year revenue growth of 10.9% this quarter, improving from last year's 7.5% growth, indicating the company's robust performance and growth potential in the market.
- Last Quarter Performance Review: Last quarter, Commerce Bancshares reported revenues of $452 million, up 6.5% year-on-year, although the earnings per share (EPS) narrowly beat analyst expectations, suggesting strong revenue performance but challenges in profitability.
- Positive Market Sentiment: Over the past month, regional bank stocks have risen by an average of 9.9%, with Commerce Bancshares increasing by 6.1%, reflecting investor confidence and optimism in the market regarding the company.
- Analyst Price Target: Analysts currently set an average price target of $58.63 for Commerce Bancshares, compared to its current share price of $51.12, indicating potential upside and further enhancing investor buy-in sentiment.
See More
Waterford Advisors Establishes New Position in Commerce Bancshares
- New Investment Disclosure: On February 19, 2026, Waterford Advisors, LLC disclosed a new position in Commerce Bancshares by acquiring 44,863 shares in the fourth quarter, with an estimated trade value of $2.58 million, reflecting confidence in the bank's prospects.
- Position Proportion Analysis: This investment represents 1.0% of Waterford Advisors' 13F reportable assets under management as of December 31, 2025, indicating a strategic allocation within its diversified portfolio.
- Stock Performance: As of February 25, 2026, shares of Commerce Bancshares were priced at $53.32, down 15% over the past year and underperforming the S&P 500 by 27 percentage points, which may affect investor sentiment.
- Capital Adequacy Advantage: Commerce Bancshares reported a Tier 1 common risk-based capital ratio of 17.46%, ranking second among the top 50 U.S. banks, demonstrating its ability to withstand economic volatility and attracting investors seeking stable returns.
See More
Commerce Bancshares Declares Quarterly Dividend Increase
- Dividend Increase: Commerce Bancshares announced a quarterly dividend of $0.275 per share, reflecting a 5% increase from the previous $0.262, marking the 58th consecutive year of dividend growth, which underscores the company's strong profitability and commitment to shareholders.
- Dividend Payment Date: The dividend is set to be paid on March 24, 2026, to shareholders of record as of March 6, 2026, ensuring timely returns for investors and bolstering investor confidence.
- Asset Scale: As of December 31, 2025, Commerce Bancshares reported total assets of $32.9 billion, and as a regional bank holding company, its robust asset base supports ongoing dividend payments.
- Acquisition Expansion: The company completed its acquisition of FineMark Holdings, Inc. on January 1, 2026, enhancing its private banking and wealth management presence in Florida while adding wealth offices in Arizona and South Carolina, demonstrating its strategic intent to expand market reach.
See More
