company background image
CMA

ComericaNYSE:CMA Stock Report

Market Cap

US$11.6b

7D

5.9%

1Y

95.7%

Updated

25 Oct, 2021

Data

Company Financials +
CMA fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends5/6

CMA Overview

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

Comerica Competitors

SVB Financial Group

NasdaqGS:SIVB

US$43.8b

First Republic Bank

NYSE:FRC

US$38.6b

Signature Bank

NasdaqGS:SBNY

US$18.7b

Western Alliance Bancorporation

NYSE:WAL

US$12.2b

Price History & Performance

Summary of all time highs, changes and price drops for Comerica
Historical stock prices
Current Share PriceUS$88.71
52 Week HighUS$41.34
52 Week LowUS$89.04
Beta1.52
1 Month Change13.09%
3 Month Change31.17%
1 Year Change95.66%
3 Year Change11.19%
5 Year Change70.30%
Change since IPO725.21%

Recent News & Updates

Oct 19

Comerica: When Rates Go Up, This Bank Is Best-In-Class

If interest rates increase, Comerica’s higher than peer level of asset sensitivity should result in stronger earnings growth. Management sounded optimistic that core loan growth should start to materialize soon. Fee income (ex-mortgage) is improving with more business activity and higher card fees.

Sep 03
Comerica (NYSE:CMA) Has Re-Affirmed Its Dividend Of US$0.68

Comerica (NYSE:CMA) Has Re-Affirmed Its Dividend Of US$0.68

The board of Comerica Incorporated ( NYSE:CMA ) has announced that it will pay a dividend on the 1st of October, with...

Aug 14
Comerica (NYSE:CMA) Will Pay A Dividend Of US$0.68

Comerica (NYSE:CMA) Will Pay A Dividend Of US$0.68

Comerica Incorporated ( NYSE:CMA ) has announced that it will pay a dividend of US$0.68 per share on the 1st of...

Aug 06

Comerica: Commercial Loan Interest Picking Up, Rates Remain A Key Factor

The large majority of Comerica's second quarter earnings beat was fueled by lower provision expense (reserve releases), but there was some fee-driven pre-provision income upside. There was a little loan growth on an adjusted basis, and it seems like activity is picking up, with a stronger pipeline and improved activity in middle market and CRE. Higher rates remain a huge source of upside, as Comerica is one of the most rate-sensitive banks out there. With my current expectations, Comerica looks fairly valued to slightly undervalued, but a stronger economy that drives more loan growth and higher rates would lead to meaningful upside.

Shareholder Returns

CMAUS BanksUS Market
7D5.9%2.9%1.9%
1Y95.7%77.0%33.4%

Return vs Industry: CMA exceeded the US Banks industry which returned 73.9% over the past year.

Return vs Market: CMA exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is CMA's price volatile compared to industry and market?
CMA volatility
CMA Beta1.52
Industry Beta1.32
Market Beta1

Stable Share Price: CMA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CMA's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
18497,459Curt Farmerhttps://www.comerica.com

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial 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.

Comerica Fundamentals Summary

How do Comerica's earnings and revenue compare to its market cap?
CMA fundamental statistics
Market CapUS$11.62b
Earnings (TTM)US$1.11b
Revenue (TTM)US$3.33b

10.5x

P/E Ratio

1.6x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMA income statement (TTM)
RevenueUS$3.33b
Cost of RevenueUS$0
Gross ProfitUS$3.33b
ExpensesUS$2.22b
EarningsUS$1.11b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 19, 2022

Earnings per share (EPS)8.48
Gross Margin100.00%
Net Profit Margin33.39%
Debt/Equity Ratio36.4%

How did CMA perform over the long term?

See historical performance and comparison

Dividends

3.1%

Current Dividend Yield

33%

Payout Ratio

Valuation

Is Comerica undervalued compared to its fair value and its price relative to the market?

15.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMA ($88.71) is trading below our estimate of fair value ($105.52)

Significantly Below Fair Value: CMA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CMA is good value based on its PE Ratio (10.5x) compared to the US Banks industry average (11.1x).

PE vs Market: CMA is good value based on its PE Ratio (10.5x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CMA is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Future Growth

How is Comerica forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMA's earnings are forecast to decline over the next 3 years (-9.4% per year).

Earnings vs Market: CMA's earnings are forecast to decline over the next 3 years (-9.4% per year).

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

Revenue vs Market: CMA's revenue (4% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: CMA's revenue (4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMA's Return on Equity is forecast to be low in 3 years time (10.9%).


Past Performance

How has Comerica performed over the past 5 years?

6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMA has high quality earnings.

Growing Profit Margin: CMA's current net profit margins (33.4%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: CMA's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: CMA's earnings growth over the past year (110.4%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: CMA earnings growth over the past year (110.4%) exceeded the Banks industry 37.5%.


Return on Equity

High ROE: CMA's Return on Equity (14.6%) is considered low.


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


Financial Institutions Analysis

Asset Level: CMA's Assets to Equity ratio (12.1x) is moderate.

Allowance for Bad Loans: CMA has a sufficient allowance for bad loans (206%).

Low Risk Liabilities: 95% of CMA's liabilities are made up of primarily low risk sources of funding.

Loan Level: CMA has an appropriate level of Loans to Assets ratio (50%).

Low Risk Deposits: CMA's Loans to Deposits ratio (58%) is appropriate.

Level of Bad Loans: CMA has an appropriate level of bad loans (0.6%).


Dividend

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

3.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMA's dividend (3.07%) is higher than the bottom 25% of dividend payers in the US market (1.28%).

High Dividend: CMA's dividend (3.07%) is low compared to the top 25% of dividend payers in the US market (3.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.4%), CMA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMA's dividends in 3 years are forecast to be well covered by earnings (40.5% 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 (58 yo)

2.5yrs

Tenure

US$5,014,099

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 C...


CEO Compensation Analysis

Compensation vs Market: Curt's total compensation ($USD5.01M) is below average for companies of similar size in the US market ($USD11.15M).

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


Leadership Team

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


Board Members

Experienced Board: CMA's board of directors are seasoned and experienced ( 13.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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

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


Key Information

  • Name: Comerica Incorporated
  • Ticker: CMA
  • Exchange: NYSE
  • Founded: 1849
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$11.622b
  • Shares outstanding: 131.01m
  • Website: https://www.comerica.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:11
End of Day Share Price2021/10/25 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.