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ZYBERNO
Stock Report
Updated Aug 30, 2026

COMMUNITY FINANCIAL SYSTEM, INC. (CBU)

Financial Services • NYSE

$63.16
Community Bank System Inc. is an American bank holding company headquartered in DeWitt, New York, that operates Community Bank N.A., a community bank serving upstate New York, Pennsylvania, Vermont, and Massachusetts. The company provides commercial and retail banking, employee benefit plan administration (OneGroup NY), and other financial services.

Professional Investment Analysis

ZYBERNO SCORE →
Is it a great business? Is it getting better?
62.0/100
AVERAGE BUSINESS
COMMUNITY FINANCIAL SYSTEM, INC. (CBU) scores 62/100 — decent metrics but limited evidence of durable competitive advantage.
📊 How is the Zyberno Score calculated? +
VALUATION SIGNAL
⚠
Business Model Limitation
COMMUNITY FINANCIAL SYSTEM, INC. operates in the Banking industry. Owner Earnings-based DCF analysis — the foundation of both the Margin of Safety and the Brina Gap — is not well-suited to companies whose business model is structurally built around leverage: banks, insurers, mortgage companies, and REITs. These businesses are typically valued using sector-specific metrics such as Price-to-Book, Price-to-FFO, or Net Asset Value. Treat these signals as directional only.
MARGIN OF SAFETY
Is this stock cheap or expensive relative to what the business has historically generated for owners?
+48.3%
Undervalued
Is the market underestimating or overestimating what this business is capable of going forward?
-24.4%
Market Overestimates
↑ UNDER
+50%
Brina Gap
-50%
↓ OVER
← OVERVALUED
-100%
Margin of Safety
UNDERVALUED →
+100%
UNDERESTIMATED
GROWTH
DOUBLE
DISCOUNT
EXPENSIVE
HYPE
VALUE
TRAP
0,0
MoS +48.3%  ·  Gap -24.4%

Two independent signals. One tells you if the stock is cheap relative to what the business has historically generated for owners — the Margin of Safety. The other tells you if the market is underestimating what the business is capable of going forward — the Brina Gap.

They are calculated from completely different data sources and answer completely different questions. The Margin of Safety reads the past. The Brina Gap reads the present economics and compares them against what the current stock price is assuming about the future.

When both point in the same direction simultaneously — DOUBLE DISCOUNT — the probability of genuine mispricing is high. The market is wrong on two independent dimensions at once, which is rare and significant.

The most dangerous scenario is not an overvalued stock — those are easy to avoid. It is a VALUE TRAP: a stock that appears cheap historically but where the market is already pricing in stronger growth than the business fundamentals support. Without the Brina Gap signal this looks identical to a genuine opportunity. The matrix separates them instantly.

The Brina Gap is the more powerful of the two signals. Most investors and analytical tools focus on valuation alone — whether a stock is cheap relative to earnings. Far fewer systematically compare what the business economics structurally support against what the stock price is actually assuming. That gap between fundamental growth potential and market expectations is where the most reliable mispricings live, and where this matrix earns its value.

Use this as your first filter. A stock in DOUBLE DISCOUNT territory is worth investigating. Everything else requires either more caution or a specific reason to act.

VALUE TRAP SIGNAL
COMMUNITY FINANCIAL SYSTEM, INC. (CBU) appears cheap historically (Margin of Safety +48.3%) but the Brina Gap (-24.4%) shows the market already prices in stronger growth than fundamentals support. Verify before acting.
🎯 Expected Annual Return →
28.1%
Margin of Safety convergence — your return if the market re-prices to intrinsic value (5-yr annualised)
-40.4%
Brina Gap convergence — your return if the market corrects the growth mispricing the Gap measures
-11.1%
Yield + growth — what the business alone earns you, even if the market never re-rates
💰 How is Margin of Safety calculated? +
📈 How is Brina Gap calculated? +

Critical Financial Health Indicators

Return on Equity (Profitability):AVERAGE (11.3%)
Debt-to-Equity (Solvency Risk):EXCELLENT (0.04x)
Operating Margin (Operational Efficiency):EXCELLENT (35.0%)
Return on Capital (Capital Efficiency):AVERAGE (12.2%)
📊 Valuation Trilogy
Three interconnected metrics for complete valuation analysis
💎
Intrinsic Value
DCF Fair Value
$122.27
🛡️
Margin of Safety
Valuation Gap
48.3%
🎯
Expected Return
Projected Annual
28.1%
Click any metric for full methodology and detailed analysis
Zyberno's Verdict

According to Zyberno, COMMUNITY FINANCIAL SYSTEM, INC. (CBU) shows a Value Trap signal — AVERAGE BUSINESS (62/100) with an apparent Margin of Safety of +48.3%, but a Brina Gap of -24.4% reveals the current price still assumes faster growth than the business can deliver.

According to Zyberno's DCF model, COMMUNITY FINANCIAL SYSTEM, INC. (CBU) trades at $63.16 against an estimated intrinsic value per share of $122.27 — a +48.3% Margin of Safety based on Owner Earnings of $296.30M TTM, projected at 12.2% growth for 10 years with a 2.5% terminal growth rate. The Brina Gap of -24.4% weakens the case: based on the company's ROIC (12.2%) and reinvestment rate (-182.0%), the business can fundamentally grow at -22.2% — but the current enterprise value implies the market expects 2.2%. This places CBU in the Value Trap quadrant of the Brina Matrix — a value-trap signal where the apparent discount is undermined by overpriced growth expectations. Zyberno's model translates this into a 5-year expected return of 28.1% annually.

Over the trailing twelve months, CBU generated $296.30M in Owner Earnings. Capital was deployed as follows: $15.51M returned via share buybacks, $98.12M paid as dividends, $71.62M invested in capital expenditures. Reinvestment rate: -182.0%. Owner Earnings have grown at 12.2% annually over the trailing five years using log-linear regression.

DIVISION I: EXECUTIVE SUMMARY
A. Market Valuation

Market Price & Capitalization (2)

Current Price:63.16
Market Cap:$3.32B

Valuation Multiples (4)

P/E Ratio:
14.65x
📊 Click to view full CBU P/E analysis →
P/B Ratio:1.60x
P/S Ratio:3.87x
Peg Ratio:0.84x

Enterprise Metrics (3)

Enterprise Value:$3.12B
Ev Ebitda Ratio:9.01x
Pfcf Ratio:13.75x

Price Action & Momentum (3)

12-1 Momentum:
+31.6% (65th pctile)
📈 Click to view full CBU Momentum analysis →
Momentum Percentile:65 / 100
% of 52-Week High:88.8%
B. Profitability Assessment

Return Metrics (7)

ROE:
11.3%
📊 Click to view full CBU ROE analysis →
ROA:1.3%
Roic:
12.2%
📊 Click to view full CBU ROIC analysis →
Reinvestment Rate:-182.0%
Fundamental Growth Rate (g):-22.2%
Market-Implied Growth Rate:2.2%
Brina Gap:
-24.4%
☷ Click to view full CBU Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:35.0%
Net Margin Ttm:26.6%
Ebitda Margin:40.3%

TTM Performance (2)

Operating Margin Ttm:35.0%
Net Margin Ttm:26.6%

Yield Metrics (3)

Earnings Yield:$6.82
Owner Earnings Yield:$8.92
Dividend Yield:3.0%
C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):
+0.49
📊 Click to view full CBU Earnings Surprise analysis →
EPS Surprise vs Expected:14.1%
Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):20.2%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):22.1%

Cash Flow Growth (Linear) (2)

Free Cash Flow Growth Rate (Linear):11.5%
Operating Cash Flow Growth Rate (Linear):11.3%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):23.6%
D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.02x
Quick Ratio:0.02x
Cash Ratio:0.02x

Leverage Analysis (3)

Debt To Equity Ttm:0.04x
Debt-to-Equity Ratio:0.04x
Debt To Ebitda:0.15x

Coverage Ratios (2)

Interest Coverage Ratio:0.98x
Times Interest Earned:0.98

Capital Structure (4)

Working Capital:-14,452,235,000.00
Cash And Cash Equivalents:258,174,000.00
Long Term Debt:$40.91M
Net Debt:-$205.44M
DIVISION II: FINANCIAL STATEMENTS ANALYSIS
A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $858.94M
Linear Growth: 20.2%
📊 Click to view full CBU Revenue analysis & methodology →
Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00
Operating income TTM: $300.52M
Linear Growth: 23.6%
📊 Click to view full CBU Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $228.06M
Linear Growth: 22.1%
📊 Click to view full CBU Net Income analysis & methodology →
Income Before Tax:$300.52M
Ebitda Ttm:345,893,000.00

Operating Expenses (5)

Operating Expenses:537,640,000.00
R And D Expense:0.00
Sga Expense:0.00
Income Tax Expense:$72.46M
Interest Expense:281,579,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%
Sga To Revenue Percentage:0.0%
Ebitda Margin:40.3%
B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$17.76B
Current Assets:$258.17M
Ppe Net:250,251,000.00
Goodwill:900,650,000.00
Intangible Assets:$63.04M

Liability Structure (4)

Total Liabilities:15,691,005,000.00
Current Liabilities:14,710,409,000.00
Long Term Debt:$40.91M
Short Term Debt:$11.82M

Equity & Capital (3)

Equity:$2.07B
Retained Earnings:$1.46B
Common Stock:75,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00
Inventory:0.00
Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00
Stock Based Compensation:2,970,000.00
C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $310.91M
Linear Growth: 11.3%
Free cash flow TTM: $239.29M
Linear Growth: 11.5%
📊 Click to view full CBU Free Cash Flow analysis & methodology →

Investment Activities (2)

Investing Cash Flow:-$202.66M
Capital Expenditures Ttm:71,616,000.00

Financing Activities (3)

Financing Cash Flow:$401.52M
Dividends Paid Ttm:98,115,000.00
Stock Repurchase:15,511,000.00

Capital Transactions (3)

Common Stock Issuance:6,119,000.00
Long Term Debt Issuance:$0.00
Long Term Debt Repayments:$0.00

Non-Cash Items (1)

Depreciation Amortization Ttm:45,375,000.00
DIVISION III: OPERATIONAL METRICS
A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):4.31
Eps diluted TTM: $4.31
Linear Growth: 22.8%
📊 Click to view full CBU EPS analysis & methodology →
Earnings Per Share Ttm:$4.33

Revenue & Cash Per Share (3)

Sales Per Share Ttm:16.33
Operating Cash Flow Per Share:$5.74
Fcf Per Share Ttm:4.59

Book Value & Capital (2)

Book Value Per Share:$39.40
Cash Per Share:4.91

Dividend Policy (1)

Dividend Payout Ratio:44.90x
B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.05x
Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x
Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x
Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00
Cash Conversion Cycle:-999.00
C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00
Quality Score:90.00

Market Metrics (2)

Beta:0.00x
Volatility Category:unknown
DIVISION IV: INVESTMENT ANALYSIS
A. Value Investment Framework

Owner Earnings Analysis (3)

Owner earnings TTM: $296.30M
Linear Growth: 12.2%
📊 Click to view full CBU Owner Earnings analysis & methodology →
Owner Earnings Per Share:$5.63
Owner Earnings Yield:$8.92

Growth Assessment (1)

Owner Earnings Growth Rate:$12.20

Damodaran Growth Analysis (4)

Reinvestment Rate:-182.0%
Fundamental Growth Rate (g):-22.2%
Market-Implied Growth Rate:2.2%
Brina Gap:
-24.4%
☷ Click to view full CBU Brina Gap analysis →

Intrinsic Value Models (1)

Intrinsic Value:
$6.43B
📊 Click to view full CBU DCF valuation →

Margin of Safety (1)

Margin Of Safety:
48.3%
📊 Click to view full CBU valuation analysis →

Return Scenarios (2)

Theoretical 5-Year Return:
28.1%
📊 Click to view full CBU expected return analysis →
Forward Expected Return (Yield + Growth):
-11.1%
📊 Click to view full CBU expected return analysis →

Investment Assessment (1)

Buffett Assessment:Excellent margin of safety
B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):20.2%
Net Income Growth Rate (Linear):22.1%
Operating Income Growth Rate (Linear):23.6%

Cash Flow Growth Rates (2)

Free Cash Flow Growth Rate (Linear):11.5%
Operating Cash Flow Growth Rate (Linear):11.3%

Other Growth Rates (2)

Book Value Growth Rate (Linear):5.9%
Owner Earnings Growth Rate:$12.20
C. Company Profile & Context

Corporate Information (6)

Symbol:CBU
Company Name:COMMUNITY FINANCIAL SYSTEM, INC.
Sector:Financial Services
Industry:Banking
Exchange:NYSE
Country:United States

Market Classification (3)

Market Cap Category:N/A
Price Category:high
Volume Category:N/A

Share Structure (3)

Shares Outstanding:52.61M
Shares Outstanding Basic:52.61M
Shares Outstanding Diluted:52.78M

Data Processing Info (3)

Processing Version:v3.0
Last Updated:2026-08-30 17:16:59 UTC
Data Timestamp:2026-08-30T17:16:59.740159
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