MeritValue

Customers Bancorp, Inc.

CUBIdata completeness 100%17 fiscal years on file
The thesis, from the filings

Customers Bancorp, Inc. earns about 15% on equity, comfortably above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $70.67 and $207.43 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$780.9M1$885.4M2$1.37B3$1.33B3$1.36B3
Net income$314.6M4$228M5$250.1M6$181.5M6$224.1M6
Operating cash flow$295.5M7−$20.8M8$124.7M9$145.1M9$494.8M9
Capital expenditure$613,00010$4.05M11$590,00012$1.49M12$13.7M12
Free cash flow (derived)$294.9M7−$24.9M8$124.1M9$143.6M9$481M9
Total debt$775M13$300M14$015$100M16$016
Cash & equivalents$518M17$455.8M18$3.85B19$3.79B20$4.41B20
Diluted shares33.7M33.5M32.2M32.7M33.4M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$632.66
your share of equity
Profit it earned you last year
$67.02
Free cash flow it threw off
$143.85
Debt you’d be carrying
$0

10 shares is a claim on $632.66 of net worth that earned you $67.02 and generated $143.85 of cash last year, against $0 of debt.

iii. Is this a good business?
Moat signal · return on equity
15% avg · 5y
FY21 23%FY22 16%FY23 15%FY24 10%FY25 11%

It earned about 15% on equity against a ~9% cost of capital — comfortably above the cost of funding, a moderate advantage.

seeing a moat in the numbers →
Management signal · capital allocation
−1% shares · 5y

Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has fallen 100% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $70.67 and $207.43 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$207.43
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth3.8%
  • fcfBase$143.6M
DCF · Growth Exit 5Y
$204.32
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth3.8%
  • fcfBase$143.6M
Earnings Power Value
$70.67
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$228M
  • growthAssumed0.0%
Graham Number
$94.4
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years3.8%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $204.32
The three cases
Bear0.0%$193.27
Base3.8%$204.32
Bull8.8%$221.35

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 3.8%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001488813-24-000010 (InterestAndDividendIncomeOperating)
  2. 10-K · period ending 2022-12-31 · accession 0001488813-25-000013 (InterestAndDividendIncomeOperating)
  3. 10-K · period ending 2023-12-31 · accession 0001488813-26-000029 (InterestAndDividendIncomeOperating)
  4. 10-K · period ending 2021-12-31 · accession 0001488813-24-000010 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001488813-25-000013 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001488813-26-000029 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001488813-24-000010 (NetCashProvidedByUsedInOperatingActivitiesContinuingOperations)
  8. 10-K · period ending 2022-12-31 · accession 0001488813-25-000013 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001488813-26-000029 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001488813-24-000010 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001488813-25-000013 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001488813-26-000029 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001488813-22-000018 (LongTermDebt)
  14. 10-K · period ending 2022-12-31 · accession 0001488813-24-000010 (ShortTermBorrowings)
  15. 10-K · period ending 2023-12-31 · accession 0001488813-25-000013 (ShortTermBorrowings)
  16. 10-K · period ending 2024-12-31 · accession 0001488813-26-000029 (ShortTermBorrowings)
  17. 10-K · period ending 2021-12-31 · accession 0001488813-23-000012 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001488813-24-000010 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001488813-25-000013 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2024-12-31 · accession 0001488813-26-000029 (CashAndCashEquivalentsAtCarryingValue)