UMB Financial trades at $135.87 per share and has stayed right on track with the overall market, gaining 23.5% over the last six months. At the same time, the S&P 500 has returned 21.4%.
Is now a good time to buy UMBF? Find out in our full research report, it’s free.
Why Does UMBF Stock Spark Debate?
With roots dating back to 1913 and a name derived from "United Missouri Bank," UMB Financial (NASDAQ:UMBF) is a financial holding company that provides banking, asset management, and fund services to commercial, institutional, and individual customers.
Two Positive Attributes:
1. Net Interest Income Skyrockets, Fueling Growth Opportunities
Net interest income commands greater market attention due to its reliability and consistency, whereas one-time fees are often seen as lower-quality revenue that lacks the same dependable characteristics.
UMB Financial’s net interest income has grown at a 21.7% annualized rate over the last five years, much better than the broader banking industry and faster than its total revenue.
2. Increasing Net Interest Margin Juices Financials
Net interest margin (NIM) serves as a critical gauge of a bank’s fundamental profitability by showing the spread between interest income and interest expenses. It’s essential for understanding whether a firm can sustainably generate returns from its lending operations.
Over the past two years, UMB Financial’s net interest margin averaged 3.1%. On the bright side, it climbed by 78.4 basis points (100 basis points = 1 percentage point) over that period.
This expansion was a tailwind for its net interest income, and while prevailing interest rates matter the most for industry net interest margins, banks that consistently increase this figure generally boast higher-earning loan books (all else equal such as the risk of those loans) or provide differentiated services that give them the ability to charge higher rates (pricing power).
One Reason to Be Careful:
Substandard TBVPS Growth Indicates Limited Asset Expansion
In the banking industry, tangible book value per share (TBVPS) provides the clearest picture of shareholder value, as it focuses on concrete assets while excluding intangible items that may not hold value during challenging times.
To the detriment of investors, UMB Financial’s TBVPS grew at a mediocre 8.9% annual clip over the last two years.
Final Judgment
UMB Financial’s positive characteristics outweigh the negatives. At $135.87 per share (or 1.3× forward P/B), is now the right time to buy the stock? See for yourself in our comprehensive research report, it’s free.
Stocks We Like Even More Than UMB Financial
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.