TSX:CM

Stock Analysis Report

Canadian Imperial Bank of Commerce

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.


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

CMIndustryMarket
7 Day5.2%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 Year9.1%-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

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

NamePositionTenureCompensationOwnership
Victor Dodig
President5.42yrsCA$10.05m0.015% CA$5.4m
Harry Culham
Senior EVP & Group Head of Capital Marketsno dataCA$8.24m0.0022% CA$773.5k
Michael Capatides
Senior EVP & Group Head of US Region1.17yrsCA$5.74m0.0031% CA$1.1m
John Ferren
Senior VPno datano datano data
Hratch Panossian
Senior EVP & CFO0.25yrno data0.00081% CA$284.8k
Christina Kramer
Senior Executive Vice-President of Technologyno datano data0.0026% CA$917.7k
Roman Dubczak
Head of Global Investment Banking & MDno datano datano data
Sandra Sharman
Senior EVP and Group Head of People2.67yrsno data0.000050% CA$17.6k
Michelle Caturay
Senior VPno datano datano data
Michael Boluch
Executive Vice President of Technology & Enterprise Innovationno datano datano 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

NamePositionTenureCompensationOwnership
Victor Dodig
President5.42yrsCA$10.05m0.015% CA$5.4m
Katharine Stevenson
Independent Director9.17yrsCA$269.00k0.0060% CA$2.1m
Patrick Daniel
Independent Director10.58yrsCA$242.00k0.0023% CA$798.2k
Barry Zubrow
Independent Director4.83yrsCA$522.86k0.0018% CA$615.3k
Luc Desjardins
Independent Director11yrsCA$219.00k0.0026% CA$896.6k
Brent Belzberg
Independent Director14.58yrsCA$234.00k0.00087% CA$305.9k
Linda Hasenfratz
Independent Director15.83yrsCA$269.00k0.0031% CA$1.1m
Jane Peverett
Independent Director11yrsCA$277.00k0.00012% CA$42.2k
John Manley
Independent Chairman of the Board4.83yrsCA$677.38k0.00020% CA$70.3k
Nicholas Le Pan
Independent Director12yrsCA$230.33k0.00068% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1972
CMTSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1972
0UNILSE (London Stock Exchange)YesCommon SharesGBCADDec 1972
CAIDB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1972
CM.PRPTSX (The Toronto Stock Exchange)PFD SR-41 CL-ACACADDec 2014
CM.PRQTSX (The Toronto Stock Exchange)PFD CL-A 43CACADMar 2015
CM.PR.RTSX (The Toronto Stock Exchange)4.4 PFD SR 45 ACACADJun 2017
CM.PRYTSX (The Toronto Stock Exchange)PFD 51 A NVCCCACADJun 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 02:04
End of Day Share Price2020/03/30 00:00
Earnings2020/01/31
Annual Earnings2019/10/31


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.