NYSE: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

Fundamentals

6 star dividend payer with excellent balance sheet.


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


Market Performance


7 Day Return

2.5%

CM

1.7%

US Banks

1.3%

US Market


1 Year Return

-6.1%

CM

0.3%

US Banks

5.9%

US Market

Return vs Industry: CM underperformed the US Banks industry which returned 0.3% over the past year.

Return vs Market: CM underperformed the US Market which returned 5.9% over the past year.


Shareholder returns

CMIndustryMarket
7 Day2.5%1.7%1.3%
30 Day1.5%-2.4%-1.9%
90 Day6.4%1.0%-1.8%
1 Year-1.0%-6.1%3.2%0.3%8.3%5.9%
3 Year26.0%9.1%52.1%41.7%45.6%36.2%
5 Year21.0%-4.4%69.8%51.4%66.1%47.9%

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

No news available

Valuation

Is Canadian Imperial Bank of Commerce undervalued compared to its fair value and its price relative to the market?

22.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CM ($83.24) is trading below our estimate of fair value ($106.96)

Significantly Undervalued: CM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CM is good value based on its PE Ratio (9.6x) compared to the Banks industry average (12.5x).

PE vs Market: CM is good value based on its PE Ratio (9.6x) compared to the US market (17.5x).


Price to Earnings Growth Ratio

Low PEG Ratio: CM is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: CM is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (1.2x).


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 11 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CM's forecast earnings growth (2.7% per year) is above the savings rate (2.7%).

Earnings vs Market: CM's earnings (2.7% per year) are forecast to grow slower than the US market (14.4% per year).

High Growth Earnings: CM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CM's revenue (4.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: CM's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CM's Return on Equity is forecast to be low in 3 years time (14.6%).


Next Steps

Past Performance

How has Canadian Imperial Bank of Commerce performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CM's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: CM's earnings growth over the past year (0.06%) is below its 5-year average (11% per year).

Earnings vs Industry: CM earnings growth over the past year (0.06%) underperformed the Banks industry 31.8%.


Return on Equity

High ROE: CM's Return on Equity (13.7%) is considered low.


Return on Assets

ROA vs Industry: CM's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate CM's Return on Capital Employed to determine if it has improved over the past 3 years.


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 1.518160x debt).


Financial Institutions Analysis

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

Allowance for Bad Loans: CM has a low 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 (0.46%)


Next Steps

Dividend

What is Canadian Imperial Bank of Commerce's current dividend yield, its reliability and sustainability?

5.24%

Current Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%1.5%markettop25%3.8%industryaverage3.1%forecastin3Years5.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CM's dividend (5.24%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: CM's dividend (5.24%) is in the top 25% of dividend payers in the US market (3.77%)

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 reasonably low payout ratio (48.3%), CM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CM's dividends in 3 years are forecast to be well covered by earnings (47.1% payout ratio).


Next Steps

Management

What is the CEO of Canadian Imperial Bank of Commerce's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Victor Dodig (53yo)

5.1yrs

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 ($USD7.59M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

2.3yrs

Average Tenure

Experienced Management: CM's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

66yo

Average Age

Experienced Board: CM's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: CM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$404,83119 Sep 19
Katharine Stevenson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,900
Max PriceCA$82.62
BuyCA$404,83118 Sep 19
Katharine Stevenson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares4,900
Max PriceCA$82.62
SellCA$38,94913 Jun 19
Nicholas Le Pan
EntityIndividual
Role
Member of the Board of Directors
Director
Shares500
Max PriceCA$77.90
BuyCA$76,20031 May 19
Barry Zubrow
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,000
Max PriceCA$76.20
SellCA$1,151,84712 Mar 19
Larry Richman
EntityIndividual
Shares13,719
Max PriceCA$83.96
BuyCA$127,14004 Dec 18
Barry Zubrow
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,500
Max PriceCA$84.76

Ownership Breakdown


Management Team

  • Kevin Glass (61yo)

    Senior EVP & CFO

    • Tenure: 8.6yrs
    • Compensation: CA$3.22m
  • Mike Capatides

    Senior EVP & Group Head of US Region

    • Tenure: 0.5yrs
    • Compensation: CA$5.74m
  • Victor Dodig (53yo)

    President

    • Tenure: 5.1yrs
    • Compensation: CA$10.05m
  • Harry Culham

    Senior EVP & Group Head of Capital Markets

    • Tenure: 8.4yrs
    • Compensation: CA$8.24m
  • Shawn Beber

    Senior EVP of Corporate Development & General Counsel

    • Tenure: 0.08yrs
  • John Ferren

    Senior VP

    • Tenure: 0yrs
  • Kevin Patterson

    Senior EVP and Group Head of Technology & Operations

    • Tenure: 2.3yrs
  • Sandy Sharman

    Senior EVP and Chief Human Resources & Communications Officer

    • Tenure: 2.3yrs
  • Roman Dubczak

    Head of Global Investment Banking & MD

    • Tenure: 0yrs
  • Hratch Panossian

    Executive Vice President

    • Tenure: 0yrs

Board Members

  • Kate Stevenson (57yo)

    Director

    • Tenure: 8.8yrs
    • Compensation: CA$269.00k
  • Pat Daniel (73yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: CA$242.00k
  • Barry Zubrow (66yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: CA$522.86k
  • Luc Desjardins (66yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: CA$219.00k
  • Brent Belzberg (68yo)

    Director

    • Tenure: 14.2yrs
    • Compensation: CA$234.00k
  • Linda Hasenfratz (53yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: CA$269.00k
  • Jane Peverett (60yo)

    Director

    • Tenure: 10.7yrs
    • Compensation: CA$277.00k
  • John Manley (69yo)

    Chair of the Board

    • Tenure: 4.5yrs
    • Compensation: CA$677.38k
  • Victor Dodig (53yo)

    President

    • Tenure: 5.1yrs
    • Compensation: CA$10.05m
  • Nick Le Pan (67yo)

    Director

    • Tenure: 11.7yrs
    • Compensation: CA$230.33k

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: NYSE
  • Founded: 1867
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CA$48.887b
  • Listing Market Cap: CA$36.944b
  • Shares outstanding: 444.87m
  • 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.PRRTSX (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 Unit ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 23:33
End of Day Share Price2019/10/14 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.