Comerica (CMA) AI Stock Analysis

• Market Cap: $8.89B
• Dividend Yield: 4.18%
• Average Volume (3M): 2.43M
• Price to Earnings (P/E): 13.3
• Beta (1Y): 1.30
• Revenue Growth: -8.62%
• EPS Growth: 15.37%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 128,525,470
• 10 Day Avg. Volume: 1,553,968
• 30 Day Avg. Volume: 2,427,018
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.72
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 14.66
• 1Y Price Target: $66.25
• Price Target Upside: -2.42% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

• Rating: 76 Outperform
• Price Target: $74.00 ▲(9.00% 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 coming in better than expected, with interest bearing deposit costs declining.

Loan Growth

Loan growth is coming in better than expected.

M&A Prospects

The likelihood of a strategic sale has increased meaningfully following recent developments.

Negative Factors

Deposit Costs

Higher deposits costs pressure forward NII from higher deposit costs and lower deposit balances.

Loan Growth Outlook

The challenging growth outlook for Comerica is a key reason for the downgrade to Underweight.

Valuation Concerns

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 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

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: 67.89
• 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 67.89 is above the 20-day moving average (MA) of 67.29, above the 50-day MA of 62.75, and above the 200-day MA of 60.91, indicating a bullish trend. The MACD of 1.44 indicates Positive momentum. The RSI at 57.56 is Neutral, neither overbought nor oversold. The STOCH value of 87.42 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	80 Outperform	$8.56B	12.09	11.60%	1.52%	4.74%	10.10%
WBS	79 Outperform	$9.71B	11.86	9.34%	2.74%	4.73%	7.12%
CMA	76 Outperform	$8.89B	13.30	11.07%	4.18%	-8.62%	15.37%
CFR	73 Outperform	$8.13B	13.61	15.34%	3.05%	4.04%	13.30%
WAL	72 Outperform	$9.26B	11.04	12.58%	1.84%	7.14%	14.94%
PNFP	68 Neutral	$7.25B	12.38	9.32%	1.01%	10.19%	48.39%
Sector *	58 Neutral	HK$112.05B	6.02	-4.20%	3.95%	9.29%	-46.28%

Comerica Corporate Events

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.

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.