Comerica (CMA) AI Stock Analysis

• Market Cap: $9.99B
• Dividend Yield: 3.73%
• Average Volume (3M): 3.20M
• Price to Earnings (P/E): 15.0
• Beta (1Y): 1.05
• Revenue Growth: -7.07%
• EPS Growth: 31.09%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.35
• Shares Outstanding: 127,742,645
• 10 Day Avg. Volume: 1,628,967
• 30 Day Avg. Volume: 3,195,495
• PEG Ratio: -0.54
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 1.65
• P/FCF Ratio: 18.36
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 2.83
• Enterprise Value/Gross Profit: 4.27
• Enterprise Value/Ebitda: 13.47
• 1Y Price Target: $79.25
• Price Target Upside: 0.46% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: $89.00 ▲(12.82% Upside)

Comerica's overall stock score reflects its solid financial performance and positive earnings call, which highlight strong loan growth and strategic investments. The technical analysis supports a bullish trend, although the overbought RSI suggests caution. Valuation metrics indicate the stock is fairly valued with an attractive dividend yield. Challenges such as declining deposits and increased leverage are areas to monitor.

Positive Factors

Strategic Investments

Comerica's strategic investments in real-time payment solutions enhance its competitive edge, offering improved services and flexibility, which can drive long-term growth and customer retention.

Capitalization Strength

A strong CET1 ratio indicates robust capitalization, providing financial stability and the ability to absorb potential losses, supporting long-term operational resilience.

Merger with Fifth Third Bancorp

The merger with Fifth Third Bancorp can create synergies and expand market reach, potentially enhancing Comerica's competitive position and operational scale in the long term.

Negative Factors

Declining Deposits

A decline in deposits can limit liquidity and funding capacity, potentially impacting Comerica's ability to support loan growth and operational needs over time.

Increased Leverage

Higher leverage can increase financial risk, especially in rising interest rate environments, potentially affecting Comerica's financial flexibility and long-term stability.

Expense Increase Expectations

Rising expenses can pressure profit margins, reducing profitability and potentially impacting Comerica's ability to invest in growth initiatives over the long term.

Comerica Business Overview & Revenue Model

Company Description

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. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans, as well as commercial products and services to micro-businesses. The Wealth Management segment provides products and services comprising fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. This segment also sells annuity products, as well as 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, Florida, 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.

How the Company Makes Money

Comerica generates revenue through various key streams, including net interest income, which is derived from the difference between the interest earned on loans and other interest-earning assets and the interest paid on deposits and borrowings. Additionally, the company earns non-interest income from fees related to banking services, investment management, and wealth advisory services. Significant partnerships with businesses and institutions enhance its service offerings, while a focus on commercial lending and treasury management solutions contributes to its earnings. The bank also benefits from its geographic presence in key U.S. markets, allowing it to capture a wide range of customer needs.

Comerica Financial Statement Overview

Summary

Comerica demonstrates solid financial health with strong profitability margins and cash flow generation. However, the decline in revenue growth and increased leverage are areas of concern. The company should focus on revenue expansion and managing debt levels to sustain long-term growth and stability.

Income Statement

Comerica's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) gross profit margin is strong at 66.17%, indicating efficient cost management. However, the revenue growth rate is negative at -1.16%, suggesting challenges in expanding revenue. The net profit margin is healthy at 14.92%, but it has decreased from previous years, reflecting potential profitability pressures. EBIT and EBITDA margins are stable, indicating consistent operational efficiency.

Balance Sheet

The balance sheet reveals a moderate risk profile. The debt-to-equity ratio has increased to 1.27 in the TTM, indicating higher leverage, which could pose risks if interest rates rise. Return on equity is decent at 10.42%, showing effective use of equity. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.

Cash Flow

Cash flow analysis shows positive trends with a significant free cash flow growth rate of 39.83% in the TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is low at 0.02, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is robust at 92.87%, reflecting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86B	4.99B	5.25B	3.74B	3.02B	3.09B
Gross Profit	3.21B	3.19B	3.50B	3.47B	3.35B	2.38B
EBITDA	1.02B	984.00M	1.23B	1.57B	1.59B	729.00M
Net Income	725.00M	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet
Total Assets	77.99B	79.30B	85.83B	85.41B	94.62B	88.13B
Cash, Cash Equivalents and Short-Term Investments	12.90B	14.18B	26.77B	25.45B	39.86B	30.97B
Total Debt	8.69B	6.67B	9.77B	6.24B	2.80B	5.73B
Total Liabilities	71.13B	72.75B	79.43B	80.22B	86.72B	80.08B
Stockholders Equity	6.86B	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow
Free Cash Flow	1.34B	448.00M	1.10B	556.00M	564.00M	849.00M
Operating Cash Flow	1.44B	601.00M	1.25B	638.00M	634.00M	928.00M
Investing Cash Flow	1.96B	3.26B	3.49B	-9.95B	1.72B	-4.60B
Financing Cash Flow	-2.92B	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.89
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 78.89 is above the 20-day moving average (MA) of 77.26, above the 50-day MA of 73.40, and above the 200-day MA of 63.05, indicating a bullish trend. The MACD of 1.22 indicates Positive momentum. The RSI at 61.10 is Neutral, neither overbought nor oversold. The STOCH value of 85.23 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	78 Outperform	$8.62B	11.82	11.69%	1.53%	3.61%	13.93%
CMA	73 Outperform	$9.99B	14.96	9.64%	3.73%	-7.07%	31.09%
ONB	70 Outperform	$8.05B	12.10	8.26%	2.67%	20.72%	3.63%
BPOP	70 Outperform	$7.55B	9.98	13.05%	2.49%	5.87%	53.36%
ZION	70 Outperform	$7.57B	9.17	12.71%	3.36%	0.12%	27.30%
UMBF	68 Neutral	$8.13B	12.11	11.06%	1.42%	38.81%	10.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Comerica Corporate Events

Comerica’s Q3 Earnings and Strategic Merger

Comerica Incorporated, a Dallas-based financial services company, operates in the banking sector with a focus on commercial, retail, and wealth management services across the United States, Canada, and Mexico.

Comerica Announces Strategic Agreement with Fifth Third

Comerica reported a third-quarter 2025 net income of $176 million, or $1.35 per share, with robust average deposit growth and a stable net interest income. While noninterest income declined and expenses increased, they still outperformed prior guidance, and the company strengthened its capital position with increased share repurchases. Comerica announced an agreement with Fifth Third Bancorp in early October, marking a significant opportunity to expand reach and enhance shareholder returns by leveraging the strengths of both organizations.

The most recent analyst rating on (CMA) stock is a Buy with a $86.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Announces Merger Agreement with Fifth Third

On October 5, 2025, Comerica Incorporated entered into a Merger Agreement with Fifth Third Bancorp, which involves Comerica merging into Fifth Third Intermediary, followed by Comerica Holdings merging into Fifth Third Intermediary. This strategic merger, approved by both companies’ boards, will result in Comerica shareholders receiving Fifth Third stock and cash for fractional shares. The merger aims to enhance Fifth Third’s market position and operational capabilities, with implications for stakeholders including changes in stock options and board composition.

The most recent analyst rating on (CMA) stock is a Sell with a $68.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Announces Merger with Fifth Third Bancorp

On October 6, 2025, Comerica Incorporated and Fifth Third Bancorp announced a definitive merger agreement in which Fifth Third will acquire Comerica in an all-stock transaction valued at $10.9 billion. This merger will create the 9th largest U.S. bank, enhancing Fifth Third’s scale, profitability, and geographic reach, particularly in high-growth markets. The combined entity will operate in 17 of the 20 fastest-growing markets in the U.S., with significant operations expected in the Southeast, Texas, Arizona, and California by 2030. The merger is anticipated to close by the end of the first quarter of 2026, subject to shareholder and regulatory approvals.

The most recent analyst rating on (CMA) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Executives to Present at Barclays Conference

Comerica announced that its top executives will present at the 2025 Barclays Global Financial Services Conference on September 9, 2025. The presentation will highlight Comerica’s strategic initiatives aimed at driving growth and enhancing its market position, with a focus on leveraging its relationship model and expanding in high-growth markets, which could have significant implications for its stakeholders.

The most recent analyst rating on (CMA) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Issues Preferred Stock for $392.2 Million

On August 11, 2025, Comerica Incorporated issued and sold 16,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 6.875% Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series B. This issuance followed the filing of a Certificate of Designations with the Secretary of State of Delaware on August 7, 2025, establishing the terms of the Series B Preferred Stock. The company entered into an Underwriting Agreement on August 4, 2025, with several major financial institutions to facilitate the sale, resulting in net proceeds of approximately $392.2 million. This strategic financial maneuver is expected to impact Comerica’s capital structure and potentially influence its market positioning.

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.