Community Bank System, Inc. (CBU) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+21.6%

$78.43

vs $64.50 price

Levered DCF

$85.89

After debt service

Piotroski score

9 / 9

Strong

Altman Z-score

0.26

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	14.43×	17.93×	21.27×	18.09×	21.22×	20.1×	21.76×	17.67×
P/B	1.51×	1.85×	1.65×	2.19×	1.91×	1.57×	1.98×	1.74×
P/S	2.99×	3.46×	3.69×	4.83×	6.34×	5.35×	5.95×	5.08×
EV / EBITDA	11.36×	15.3×	17.13×	15.96×	9.12×	8.56×	15.77×	12.88×
Gross margin	78.8%	76.9%	84.7%	94.6%	99.3%	94.3%	94.3%	95.1%
Operating margin	27.2%	25.2%	22.3%	34.2%	38.1%	33.4%	34.0%	36.3%
Net margin	20.8%	19.4%	17.5%	26.8%	29.9%	26.7%	27.4%	28.7%
Current ratio	1.49×	0.04×	0.24×	0.31×	0.51×	0.45×	0.35×	0.36×
Debt / equity	0.37×	0.57×	0.45×	0.73×	0.16×	0.18×	0.19×	0.24×
Interest coverage	1.43×	1.22×	1.62×	10.4×	18.55×	9.87×	7.88×	12.05×
Dividend yield	3.2%	2.9%	3.4%	2.8%	2.3%	2.6%	2.2%	2.4%
Payout ratio	46.4%	52.5%	72.1%	49.7%	48.0%	52.9%	47.5%	42.4%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	10.5%	10.4%	7.8%	12.1%	9.0%	7.8%	9.1%	9.8%
Return on invested capital	1.2%	6.2%	5.0%	7.0%	7.8%	6.7%	7.7%	7.9%
Return on assets	1.2%	1.1%	0.8%	1.2%	1.2%	1.2%	1.5%	1.6%
Free cash flow yield	7.7%	6.8%	7.5%	5.9%	4.7%	5.0%	5.4%	7.0%
Earnings yield	7.0%	5.6%	4.7%	5.5%	4.7%	5.0%	4.6%	5.7%
Enterprise value	$3.5B	$4.1B	$3.4B	$4.3B	$2.5B	$2B	$3.8B	$3.2B
Net debt / EBITDA	1.46×	3.04×	2.92×	3.43×	-5.69×	-5.38×	0.58×	0.82×
Cash conversion cycle (days)	21	21	26	-1,263	-18,435	-2,377	-2,227	-1,996