Comerica (CMA) AI Stock Analysis

• Market Cap: $8.87B
• Dividend Yield: 4.21%
• Average Volume (3M): 2.07M
• Price to Earnings (P/E): 12.8
• Beta (1Y): 1.32
• Revenue Growth: -7.80%
• EPS Growth: 15.43%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 131,412,830
• 10 Day Avg. Volume: 3,276,389
• 30 Day Avg. Volume: 2,073,308
• PEG Ratio: -9.39
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.29
• Enterprise Value/Market Cap: 1.20
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $63.47
• Price Target Upside: -5.94% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 76 Outperform
• Price Target: $74.00 ▲(9.66%Upside)

Comerica's overall stock score is driven primarily by strong financial performance and positive technical indicators, suggesting a robust near-term outlook. The earnings call further supports a favorable sentiment, though valuation considerations and a cautious corporate event outlook temper the score.

Positive Factors

Deposit Trends

Deposit trends are improving with interest-bearing deposit costs declining, which is a positive indicator for the financial health of the company.

Loan Growth

Loan growth is coming in better than expected, contributing positively to the stock sentiment.

Negative Factors

Expense Flexibility

Comerica lacks material expense flexibility, which limits its ability to protect the bottom line against top-line pressures.

Loan Demand

A further pullback in loan demand suggests a challenging environment ahead and adds pressure on revenue generation.

Net Interest Income

Higher deposit costs are pressuring forward net interest income, which impacts the company's profitability negatively.

Comerica Business Overview & Revenue Model

Company Description

Comerica Incorporated (CMA) is a financial services company headquartered in Dallas, Texas. It operates primarily in the commercial banking sector, offering a comprehensive range of financial products and services. Comerica has a strong presence in major U.S. markets, particularly in Texas, California, and Michigan, and provides services including business banking, wealth management, and retail banking solutions. The company is known for its commitment to providing personalized financial services to its clients, focusing on both individual and corporate customers.

How the Company Makes Money

Comerica generates revenue through a variety of financial services and banking activities. The company's primary revenue streams include interest income from loans and other lending activities, which is the largest component of its earnings. Comerica offers a wide array of loan products, including commercial loans, real estate construction loans, and consumer loans. In addition to lending, the company earns revenue through service charges on deposit accounts, fees from wealth management and fiduciary services, and investment management fees. Comerica also benefits from its treasury management services, which provide businesses with cash management solutions. Significant partnerships with corporate clients and a strong focus on relationship-based banking contribute to its profitability, helping to maintain a steady flow of income from both interest and non-interest sources.

Comerica Financial Statement Overview

Summary

CMA showcases strong financial health with consistent revenue growth and solid cash flow generation. While profitability margins are mixed, the company's balance sheet remains stable with low leverage, positioning it well for reasonable growth prospects.

Income Statement

CMA demonstrates a stable revenue growth trajectory with a notable increase in total revenue in the TTM period. Gross profit margin remains high, reflecting efficient cost management. However, there was a decline in EBIT and EBITDA margins, indicating potential operational efficiency issues. The net profit margin improved, showcasing effective cost control and profitability enhancement.

Balance Sheet

The balance sheet reveals a prudent financial structure with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is moderate, suggesting adequate capitalization. Return on equity has improved, reflecting enhanced shareholder value. However, the decrease in total assets and stockholders' equity warrants attention.

Cash Flow

CMA's cash flow statement shows robust operating cash flow relative to net income, indicating strong cash generation efficiency. Free cash flow growth rate is impressive, contributing to financial flexibility. The free cash flow to net income ratio is favorable, underscoring the company's ability to convert earnings into cash.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.99B	5.25B	3.74B	3.02B	3.09B
Gross Profit	3.19B	3.50B	3.47B	3.35B	2.38B
EBITDA	984.00M	1.23B	1.57B	1.59B	729.00M
Net Income	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet
Total Assets	79.30B	85.83B	85.41B	94.62B	88.13B
Cash, Cash Equivalents and Short-Term Investments	14.18B	26.77B	25.45B	39.86B	30.97B
Total Debt	6.67B	9.77B	6.24B	2.80B	5.73B
Total Liabilities	72.75B	79.43B	80.22B	86.72B	80.08B
Stockholders Equity	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow
Free Cash Flow	448.00M	1.10B	556.00M	564.00M	849.00M
Operating Cash Flow	601.00M	1.25B	638.00M	634.00M	928.00M
Investing Cash Flow	3.26B	3.49B	-9.95B	1.72B	-4.60B
Financing Cash Flow	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.48
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMA, the sentiment is Positive. The current price of 67.48 is above the 20-day moving average (MA) of 63.35, above the 50-day MA of 59.45, and above the 200-day MA of 60.27, indicating a bullish trend. The MACD of 2.17 indicates Negative momentum. The RSI at 69.45 is Neutral, neither overbought nor oversold. The STOCH value of 96.90 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMA.

Comerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	81 Outperform	$8.89B	12.81	11.60%	1.43%	4.30%	10.10%
WBS	79 Outperform	$10.13B	12.56	9.49%	2.66%	4.65%	7.12%
CFR	78 Outperform	$8.70B	15.03	15.26%	2.84%	5.99%	7.75%
CMA	76 Outperform	$8.87B	12.80	11.07%	4.21%	-7.80%	15.43%
WAL	72 Outperform	$9.19B	10.99	12.58%	1.81%	7.06%	14.94%
PNFP	70 Outperform	$8.08B	14.18	9.32%	1.00%	10.19%	48.39%
Sector *	69 Neutral	€22.21B	30.08	10.88%	5.00%	3.59%	-0.47%

Comerica Corporate Events

Comerica Executives to Present at Financials Conference

Comerica announced that key executives will present at the 2025 Morgan Stanley US Financials Conference on June 11, 2025. The presentation will highlight Comerica’s strategic initiatives aimed at driving sustainable revenue growth and enhancing its market position. The company emphasizes its commitment to leveraging its strong foundation and differentiated strategy to achieve responsible growth and deliver enhanced returns over time.

The most recent analyst rating on (CMA) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Announces Redemption of Preferred Stock Series A

On June 10, 2025, Comerica Incorporated announced its decision to redeem all 4,000 outstanding shares of its 5.625% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A, along with the corresponding depositary shares, on July 1, 2025. This strategic move, which follows the satisfaction of all regulatory requirements, will involve a redemption price of $1,000 per depositary share, excluding declared and unpaid dividends, and will be executed through The Depository Trust Company with Computershare Inc. and Computershare Trust Company, N.A. acting as the redemption agent.

The most recent analyst rating on (CMA) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica’s Chief Risk Officer Resigns, Interim Appointed

On May 8, 2025, Brian S. Goldman announced his resignation as Senior Executive Vice President and Chief Risk Officer of Comerica, effective May 23, 2025, to pursue another opportunity. His departure was amicable, and Comerica is searching for a permanent replacement. Meanwhile, Melinda A. Chausse will take on the role of Chief Risk Officer on an interim basis, ensuring continuity in risk management operations.

The most recent analyst rating on (CMA) stock is a Sell with a $50.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Shareholders Approve Key Decisions at Annual Meeting

Comerica Incorporated held its 2025 Annual Meeting of Shareholders on April 29, 2025, where it was decided to reduce the Board size to eleven directors following the end of Nancy Avila’s term. During the meeting, shareholders voted on several matters, including the election of eleven directors, the ratification of Ernst & Young LLP as the independent accounting firm for 2025, and the approval of executive compensation, all of which were approved.