Comerica (CMA) AI Stock Analysis

• Market Cap: $8.19B
• Dividend Yield: 4.55%
• Average Volume (3M): 1.37M
• Price to Earnings (P/E): 11.8
• Beta (1Y): 1.30
• Revenue Growth: -9.81%
• EPS Growth: 5.22%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 1.25
• Shares Outstanding: 131,412,830
• 10 Day Avg. Volume: 1,507,154
• 30 Day Avg. Volume: 1,374,593
• PEG Ratio: 1.91
• Price to Book (P/B): 1.06
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.74
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 2.29
• 1Y Price Target: $60.53
• Price Target Upside: -2.92% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 16

• Rating: 72 Outperform
• Price Target: $69.00 ▲(10.67%Upside)

Comerica's strong financial performance and robust earnings call are the most significant factors driving the score. The stock's technical indicators suggest caution due to overbought conditions. Valuation is fair with an attractive dividend yield, but recent analyst sentiment is a concern.

Positive Factors

Deposit Trends

Deposit trends are coming in better than expected, with interest bearing deposit costs declining.

Earnings

1Q25 EPS of $1.25 beat MS/Consensus estimates driven by lower expenses and higher NII.

M&A Speculation

Comerica outperformed peers, reflecting optimism that bank M&A activity is set to accelerate, offsetting the risk to the company's commercial-heavy business model in a weaker economic environment.

Negative Factors

Expense Flexibility

CMA also appears to lack material expense flexibility required to adequately insulate the bottom line against top line pressure.

Loan Growth

The tougher macro environment drives down forward loan growth and NII guides closer to below consensus estimates.

Valuation

CMA shares trade at a 20% premium compared to the coverage universe median, making them appear expensive.

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 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

Comerica exhibits 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. Overall, CMA is well-positioned with reasonable growth prospects and financial stability, though monitoring operational efficiency improvements is recommended.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.92B	4.99B	5.25B	3.74B	3.02B	3.09B
Gross Profit	3.23B	3.19B	3.50B	3.47B	3.35B	2.38B
EBITDA	1.04B	984.00M	1.23B	1.57B	1.59B	729.00M
Net Income	732.00M	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet
Total Assets	77.62B	79.30B	85.83B	85.41B	94.62B	88.13B
Cash, Cash Equivalents and Short-Term Investments	13.57B	14.18B	26.77B	25.45B	39.86B	30.97B
Total Debt	6.96B	6.67B	9.77B	6.24B	2.80B	5.73B
Total Liabilities	70.57B	72.75B	79.43B	80.22B	86.72B	80.08B
Stockholders Equity	7.05B	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow
Free Cash Flow	959.00M	448.00M	1.10B	556.00M	564.00M	849.00M
Operating Cash Flow	1.08B	601.00M	1.25B	638.00M	634.00M	928.00M
Investing Cash Flow	2.44B	3.26B	3.49B	-9.95B	1.72B	-4.60B
Financing Cash Flow	-2.86B	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 62.35 is above the 20-day moving average (MA) of 57.71, above the 50-day MA of 56.29, and above the 200-day MA of 59.73, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 72.92 is Negative, neither overbought nor oversold. The STOCH value of 94.17 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	82 Outperform	$8.72B	12.88	11.58%	1.53%	7.10%	4.65%
WBS	79 Outperform	$9.72B	13.00	8.59%	2.77%	2.69%	-9.07%
CFR	78 Outperform	$8.64B	14.77	15.26%	2.97%	5.99%	7.75%
PNFP	75 Outperform	$9.07B	18.91	7.77%	0.82%	8.08%	-11.31%
WAL	74 Outperform	$8.95B	11.13	12.36%	1.88%	11.01%	6.63%
CMA	72 Outperform	$8.19B	11.82	11.11%	4.55%	-9.81%	5.22%
Sector *	67 Neutral	$16.84B	11.72	9.71%	3.76%	11.61%	-9.60%

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.