NYSE:CMA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

7.5%

CMA

5.8%

US Banks

3.4%

US Market


1 Year Return

-20.1%

CMA

1.0%

US Banks

5.4%

US Market

Return vs Industry: CMA underperformed the US Banks industry which returned 1% over the past year.

Return vs Market: CMA underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

CMAIndustryMarket
7 Day7.5%5.8%3.4%
30 Day2.1%-0.6%-1.0%
90 Day-3.2%3.1%-0.4%
1 Year-17.2%-20.1%3.9%1.0%7.7%5.4%
3 Year43.2%33.9%53.5%42.9%46.2%36.8%
5 Year66.6%49.9%69.8%51.3%65.6%47.5%

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

Valuation

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

38.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CMA ($67) is trading below our estimate of fair value ($109.27)

Significantly Undervalued: 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 (8.5x) compared to the Banks industry average (12.6x).

PE vs Market: CMA is good value based on its PE Ratio (8.5x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low 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 (1.4x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

-8.6%

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 (-8.6% per year).

Earnings vs Market: CMA's earnings are forecast to decline over the next 3 years (-8.6% per year).

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

Revenue vs Market: CMA's revenue is expected to decline over the next 3 years (-2% per year).

High Growth Revenue: CMA's revenue is forecast to decline over the next 3 years (-2%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CMA's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has Comerica performed over the past 5 years?

20.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMA's earnings have grown significantly by 20.5% per year over the past 5 years.

Accelerating Growth: CMA's earnings growth over the past year (34%) exceeds its 5-year average (20.5% per year).

Earnings vs Industry: CMA earnings growth over the past year (34%) exceeded the Banks industry 31.8%.


Return on Equity

High ROE: CMA's Return on Equity (17.3%) is considered low.


Return on Assets

ROA vs Industry: CMA has a higher Return on Assets than the Banks industry average last year.


Return on Capital Employed

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


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: CMA has a low level of unsold assets or inventory.

Debt Coverage by Assets: CMA's debt is not covered by short term assets (assets are 0.9x debt).


Financial Institutions Analysis

Asset Level: CMA's level of assets compared to its equity is low.

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

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

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

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

Level of Bad Loans: CMA has an appropriate level of bad loans (0.44%)


Next Steps

Dividend

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

4.00%

Current Dividend Yield


Dividend Yield vs Market

company4.0%marketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years4.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CMA's dividend (4%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: CMA's dividend (4%) is in the top 25% of dividend payers in the US market (3.77%)

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 (32.3%), 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% payout ratio).


Next Steps

Management

What is the CEO of Comerica's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Curt Farmer (56yo)

0.5yrs

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. Mr. Farm ...


CEO Compensation Analysis

Compensation vs. Market: Curt has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.5yrs

Average Tenure

56.5yo

Average Age

Experienced Management: CMA's management team is considered experienced (3.5 years average tenure).


Board Age and Tenure

12.8yrs

Average Tenure

63.5yo

Average Age

Experienced Board: CMA's board of directors are seasoned and experienced ( 12.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$711,36704 Mar 19
Paul Obermeyer
EntityIndividual
Role
Chief Technology Officer
Executive Vice President of Enterprise Technology
Shares8,200
Max PriceUS$86.76
SellUS$651,64728 Feb 19
Megan Burkhart
EntityIndividual
Role
Head of Human Resources
Executive VP & Chief HR Officer
Shares7,443
Max PriceUS$87.58
SellUS$188,95131 Jan 19
Peter Guilfoile
EntityIndividual
Shares2,297
Max PriceUS$82.26

Ownership Breakdown


Management Team

  • Ralph Babb (70yo)

    Executive Chairman

    • Tenure: 17yrs
    • Compensation: US$10.04m
  • Curt Farmer (56yo)

    CEO, President & Director

    • Tenure: 0.5yrs
    • Compensation: US$3.99m
  • Michele Jones

    Senior Vice President and Alternate Group Manager - Energy Finance Group

    • Tenure: 14.9yrs
  • John Buchanan (55yo)

    • Tenure: 3.8yrs
    • Compensation: US$2.34m
  • Edward Gwilt

    SVP of Asset Quality Review

    • Tenure: 0yrs
  • Darlene Persons

    Director of Investor Relations

    • Tenure: 13.3yrs
  • Paul Obermeyer (61yo)

    Executive Vice President of Enterprise Technology

    • Tenure: 3.2yrs
  • Megan Burkhart (47yo)

    Executive VP & Chief HR Officer

    • Tenure: 9.8yrs
  • Jim Herzog (57yo)

    Interim CFO

    • Tenure: 0.08yrs
  • James Weber

    Executive VP and Chief Marketing & Communications Officer

    • Tenure: 0.4yrs

Board Members

  • T. DeNicola (64yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$245.30k
  • Roger Cregg (63yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$199.55k
  • Ralph Babb (70yo)

    Executive Chairman

    • Tenure: 17yrs
    • Compensation: US$10.04m
  • Bobby Taubman (65yo)

    Director

    • Tenure: 19.3yrs
    • Compensation: US$182.05k
  • Rick Lindner (64yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$235.55k
  • Curt Farmer (56yo)

    CEO, President & Director

    • Tenure: 0.5yrs
    • Compensation: US$3.99m
  • Jackie Kane (67yo)

    Director

    • Tenure: 11.1yrs
    • Compensation: US$180.05k
  • Mike Van de Ven (57yo)

    Director

    • Tenure: 3.1yrs
    • Compensation: US$180.05k
  • Reginald Turner (59yo)

    Director

    • Tenure: 14.8yrs
    • Compensation: US$225.55k
  • Ximena Humrichouse Vaca (48yo)

    Director

    • Tenure: 11.1yrs
    • Compensation: US$199.55k

Company Information

Comerica Incorporated's company bio, 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$10.007b
  • Shares outstanding: 149.36m
  • 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

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 s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 23:34
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.