DB:CA3

Stock Analysis Report

Executive Summary

Comerica Incorporated, through its subsidiaries, provides various financial products and services.


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


Similar Companies

Share Price & News

How has Comerica's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CA3 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.9%

CA3

-0.3%

DE Banks

-0.9%

DE Market


1 Year Return

-24.4%

CA3

0.9%

DE Banks

12.8%

DE Market

Return vs Industry: CA3 underperformed the German Banks industry which returned 0.9% over the past year.

Return vs Market: CA3 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

CA3IndustryMarket
7 Day0.9%-0.3%-0.9%
30 Day-2.5%18.3%0.6%
90 Day-7.2%19.5%2.9%
1 Year-21.5%-24.4%4.2%0.9%16.3%12.8%
3 Year-6.7%-13.3%-2.5%-7.4%15.8%5.7%
5 Year59.9%43.0%-3.9%-27.8%19.7%3.3%

Price Volatility Vs. Market

How volatile is Comerica's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Comerica 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: CA3 (€58) is trading below our estimate of fair value (€121.45)

Significantly Below Fair Value: CA3 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CA3 is good value based on its PE Ratio (7.9x) compared to the Banks industry average (17.7x).

PE vs Market: CA3 is good value based on its PE Ratio (7.9x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: CA3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CA3 is overvalued based on its PB Ratio (1.2x) compared to the DE Banks industry average (0.9x).


Next Steps

Future Growth

How is Comerica forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

-10.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CA3's earnings are forecast to decline over the next 3 years (-10.4% per year).

Earnings vs Market: CA3's earnings are forecast to decline over the next 3 years (-10.4% per year).

High Growth Earnings: CA3's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CA3's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: CA3's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CA3's Return on Equity is forecast to be low in 3 years time (12.8%).


Next Steps

Past Performance

How has Comerica performed over the past 5 years?

22.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CA3 has high quality earnings.

Growing Profit Margin: CA3's current net profit margins (36.4%) are lower than last year (36.9%).


Past Earnings Growth Analysis

Earnings Trend: CA3's earnings have grown significantly by 22.5% per year over the past 5 years.

Accelerating Growth: CA3's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CA3 had negative earnings growth (-2.9%) over the past year, making it difficult to compare to the Banks industry average (-7%).


Return on Equity

High ROE: CA3's Return on Equity (16.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Comerica'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: CA3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: CA3's debt is covered by short term assets (assets are 1.3x debt).


Financial Institutions Analysis

Asset Level: CA3's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CA3 has a sufficient allowance for bad loans.

Low Risk Liabilities: CA3's liabilities are made up of primarily low risk sources of funding.

Loan Level: CA3 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CA3's loans are broadly funded by customer deposits.

Level of Bad Loans: CA3 has an appropriate level of bad loans (0.41%)


Next Steps

Dividend

What is Comerica's current dividend yield, its reliability and sustainability?

4.35%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Comerica before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.4%marketbottom25%1.3%markettop25%3.6%industryaverage2.7%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: CA3's dividend (4.35%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: CA3's dividend (4.35%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: CA3's dividends per share have been stable in the past 10 years.

Growing Dividend: CA3's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.8%), CA3's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CA3's dividends in 3 years are forecast to be well covered by earnings (42.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Curt Farmer (56yo)

0.8yrs

Tenure

US$3,987,706

Compensation

Mr. Curtis Chatman Farmer, also known as Curt, has been Chief Executive Officer of Comerica Incorporated and Comerica Bank since April 23, 2019 and has been its the President since April 29, 2015 and its E ...


CEO Compensation Analysis

Compensation vs Market: Curt's total compensation ($USD3.99M) is about average for companies of similar size in the German market ($USD3.37M).

Compensation vs Earnings: Curt's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Curtis Farmer
Executive Chairman0.8yrsUS$3.99m0.086% $7.0m
John Buchanan
Executive VP4.1yrsUS$2.34m0.024% $1.9m
James Herzog
Interim CFO0.4yrsno data0.0059% $482.1k
Edward Gwilt
SVP of Asset Quality Review0yrsno datano data
Paul Obermeyer
Executive Vice President of Enterprise Technology & Operations3.5yrsno data0.0087% $707.3k
Mauricio Ortiz
Senior VP & Chief Accounting Officer2.1yrsno data0.0039% $313.0k
Darlene Persons
Director of Investor Relations13.6yrsno datano data
James Weber
Executive VP0yrsno data0.0095% $770.7k
Megan Burkhart
Executive VP & Chief HR Officer10.1yrsno data0.019% $1.5m
Michele Jones
Senior Vice President and Alternate Group Manager - Energy Finance Group15.3yrsno datano data

3.8yrs

Average Tenure

55.5yo

Average Age

Experienced Management: CA3's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Curtis Farmer
Executive Chairman0.8yrsUS$3.99m0.086% $7.0m
T. DeNicola
Independent Director13.2yrsUS$245.30k0.0046% $376.4k
Roger Cregg
Independent Director13.2yrsUS$199.55k0.0035% $287.8k
Robert Taubman
Independent Director19.6yrsUS$182.05k0.030% $2.4m
Richard Lindner
Lead Director0yrsUS$235.55k0.039% $3.2m
Jacqueline Kane
Independent Director11.4yrsUS$180.05k0.025% $2.0m
Michael Van de Ven
Independent Director3.4yrsUS$180.05k0.0035% $287.8k
Reginald Turner
Independent Director15.1yrsUS$225.55k0.0011% $93.5k
Nina Vaca
Independent Director11.4yrsUS$199.55k0.000050% $4.1k
Michael Collins
Independent Director3.3yrsUS$204.05kno data

11.4yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CA3's board of directors are seasoned and experienced ( 11.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CA3 insiders have only sold shares 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

Comerica Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comerica Incorporated
  • Ticker: CA3
  • Exchange: DB
  • Founded: 1849
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$8.831b
  • Listing Market Cap: US$8.130b
  • Shares outstanding: 141.35m
  • Website: https://www.comerica.com

Number of Employees


Location

  • Comerica Incorporated
  • Comerica Bank Tower
  • 1717 Main Street
  • Dallas
  • Texas
  • 75201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMANYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1969
CA3DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1969
0I1PLSE (London Stock Exchange)YesCommon StockGBUSDJan 1969
C1MA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

Biography

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through three segments: Business Bank, Retail Bank, and Wealth Management. The Business Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination. It also offers various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans. The Wealth Management segment provides products and services comprising fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. It also sells annuity products; and life, disability, and long-term care insurance products. The Finance segment engages in the securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona and Florida, as well as in Canada and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 21:05
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.