Executive Summary
Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, undervalued and pays a dividend.
Similar Companies
Share Price & News
How has Canadian Imperial Bank of Commerce's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CM's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.2%
CM
4.9%
CA Banks
4.5%
CA Market
1 Year Return
-26.9%
CM
-22.4%
CA Banks
-24.5%
CA Market
Return vs Industry: CM underperformed the Canadian Banks industry which returned -22.4% over the past year.
Return vs Market: CM underperformed the Canadian Market which returned -24.5% over the past year.
Shareholder returns
| CM | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.2% | 4.9% | 4.5% |
| 30 Day | -22.7% | -19.0% | -20.1% |
| 90 Day | -26.9% | -22.9% | -24.9% |
| 1 Year | -22.6%-26.9% | -19.2%-22.4% | -22.0%-24.5% |
| 3 Year | -20.6%-31.8% | -10.5%-20.6% | -14.2%-22.2% |
| 5 Year | 9.1%-14.8% | 20.4%-1.5% | -1.9%-16.5% |
Price Volatility Vs. Market
How volatile is Canadian Imperial Bank of Commerce's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall St
Trade Alert: The President Of Canadian Imperial Bank of Commerce (TSE:CM), Victor Dodig, Has Just Spent CA$2.0m Buying Shares2 weeks ago | Simply Wall St
When Should You Buy Canadian Imperial Bank of Commerce (TSE:CM)?1 month ago | Simply Wall St
Have Insiders Been Buying Canadian Imperial Bank of Commerce (TSE:CM) Shares?Valuation
Is Canadian Imperial Bank of Commerce undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CM (CA$79) is trading below our estimate of fair value (CA$160.51)
Significantly Below Fair Value: CM is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CM is good value based on its PE Ratio (7x) compared to the Banks industry average (7.9x).
PE vs Market: CM is good value based on its PE Ratio (7x) compared to the Canadian market (10.3x).
Price to Earnings Growth Ratio
PEG Ratio: CM is poor value based on its PEG Ratio (33.3x)
Price to Book Ratio
PB vs Industry: CM is good value based on its PB Ratio (1x) compared to the CA Banks industry average (1x).
Next Steps
Future Growth
How is Canadian Imperial Bank of Commerce forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
0.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CM's forecast earnings growth (0.2% per year) is below the savings rate (1.4%).
Earnings vs Market: CM's earnings (0.2% per year) are forecast to grow slower than the Canadian market (7.4% per year).
High Growth Earnings: CM's earnings are forecast to grow, but not significantly.
Revenue vs Market: CM's revenue (2.5% per year) is forecast to grow slower than the Canadian market (3.8% per year).
High Growth Revenue: CM's revenue (2.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CM's Return on Equity is forecast to be low in 3 years time (13.3%).
Next Steps
Past Performance
How has Canadian Imperial Bank of Commerce performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CM has high quality earnings.
Growing Profit Margin: CM's current net profit margins (28.3%) are lower than last year (29.8%).
Past Earnings Growth Analysis
Earnings Trend: CM's earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: CM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CM had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Banks industry average (5.3%).
Return on Equity
High ROE: CM's Return on Equity (13.1%) is considered low.
Next Steps
Financial Health
How is Canadian Imperial Bank of Commerce's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: CM has a low level of unsold assets or inventory.
Debt Coverage by Assets: CM's debt is covered by short term assets (assets are 1.6x debt).
Financial Institutions Analysis
Asset Level: CM's level of assets compared to its equity is moderate.
Allowance for Bad Loans: CM has a sufficient allowance for bad loans.
Low Risk Liabilities: CM's liabilities are made up of primarily low risk sources of funding.
Loan Level: CM has an acceptable proportion of non-loan assets held.
Low Risk Deposits: CM's loans are broadly funded by customer deposits.
Level of Bad Loans: CM has an appropriate level of bad loans (0.48%)
Next Steps
Dividend
What is Canadian Imperial Bank of Commerce's current dividend yield, its reliability and sustainability?
7.39%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CM's dividend (7.39%) is higher than the bottom 25% of dividend payers in the Canadian market (2.71%).
High Dividend: CM's dividend (7.39%) is low compared to the top 25% of dividend payers in the Canadian market (8.69%).
Stability and Growth of Payments
Stable Dividend: CM's dividends per share have been stable in the past 10 years.
Growing Dividend: CM's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (50.5%), CM's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: CM's dividends in 3 years are forecast to be covered by earnings (50.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.9yrs
Average management tenure
CEO
Victor Dodig (53yo)
5.42s
Tenure
CA$10,048,350
Compensation
Mr. Victor G. Dodig has been the Chief Executive Officer and President at Canadian Imperial Bank of Commerce since September 15, 2014. Mr. Dodig is employed at CIBC Asset Management Inc. He has more than 2 ...
CEO Compensation Analysis
Compensation vs Market: Victor's total compensation ($USD7.11M) is about average for companies of similar size in the Canadian market ($USD6.78M).
Compensation vs Earnings: Victor's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.42yrs | CA$10.05m | 0.015% CA$5.4m | |
| Senior EVP & Group Head of Capital Markets | no data | CA$8.24m | 0.0022% CA$773.5k | |
| Senior EVP & Group Head of US Region | 1.17yrs | CA$5.74m | 0.0031% CA$1.1m | |
| Senior VP | no data | no data | no data | |
| Senior EVP & CFO | 0.25yr | no data | 0.00081% CA$284.8k | |
| Senior Executive Vice-President of Technology | no data | no data | 0.0026% CA$917.7k | |
| Head of Global Investment Banking & MD | no data | no data | no data | |
| Senior EVP and Group Head of People | 2.67yrs | no data | 0.000050% CA$17.6k | |
| Senior VP | no data | no data | no data | |
| Executive Vice President of Technology & Enterprise Innovation | no data | no data | no data |
1.9yrs
Average Tenure
Experienced Management: CM's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.42yrs | CA$10.05m | 0.015% CA$5.4m | |
| Independent Director | 9.17yrs | CA$269.00k | 0.0060% CA$2.1m | |
| Independent Director | 10.58yrs | CA$242.00k | 0.0023% CA$798.2k | |
| Independent Director | 4.83yrs | CA$522.86k | 0.0018% CA$615.3k | |
| Independent Director | 11yrs | CA$219.00k | 0.0026% CA$896.6k | |
| Independent Director | 14.58yrs | CA$234.00k | 0.00087% CA$305.9k | |
| Independent Director | 15.83yrs | CA$269.00k | 0.0031% CA$1.1m | |
| Independent Director | 11yrs | CA$277.00k | 0.00012% CA$42.2k | |
| Independent Chairman of the Board | 4.83yrs | CA$677.38k | 0.00020% CA$70.3k | |
| Independent Director | 12yrs | CA$230.33k | 0.00068% CA$239.1k |
10.8yrs
Average Tenure
66yo
Average Age
Experienced Board: CM's board of directors are seasoned and experienced ( 10.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CM insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Canadian Imperial Bank of Commerce's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Canadian Imperial Bank of Commerce
- Ticker: CM
- Exchange: TSX
- Founded: 1867
- Industry: Diversified Banks
- Sector: Banks
- Market Cap: CA$35.161b
- Shares outstanding: 445.07m
- Website: https://www.cibc.com
Number of Employees
Location
- Canadian Imperial Bank of Commerce
- Commerce Court
- Toronto
- Ontario
- M5L 1A2
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CM | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Dec 1972 |
| CM | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Dec 1972 |
| 0UNI | LSE (London Stock Exchange) | Yes | Common Shares | GB | CAD | Dec 1972 |
| CAI | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Dec 1972 |
| CM.PRP | TSX (The Toronto Stock Exchange) | PFD SR-41 CL-A | CA | CAD | Dec 2014 | |
| CM.PRQ | TSX (The Toronto Stock Exchange) | PFD CL-A 43 | CA | CAD | Mar 2015 | |
| CM.PR.R | TSX (The Toronto Stock Exchange) | 4.4 PFD SR 45 A | CA | CAD | Jun 2017 | |
| CM.PRY | TSX (The Toronto Stock Exchange) | PFD 51 A NVCC | CA | CAD | Jun 2019 |
Biography
Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Small Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. It offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services. Canadian Imperial Bank of Commerce also provides day-to-day banking, borrowing and credit, investing and wealth, specialty, and international services; correspondent banking and online foreign exchange services; and cash management services. The company serves its customers through its banking centers, as well as direct, mobile, and remote channels. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 02:04 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2019/10/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.