Comerica (CMA) AI Stock Analysis

• Market Cap: $9.07B
• Dividend Yield: 4.12%
• Average Volume (3M): 2.13M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.26
• Revenue Growth: -8.62%
• EPS Growth: 15.37%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 128,525,470
• 10 Day Avg. Volume: 1,950,493
• 30 Day Avg. Volume: 2,134,656
• 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: 1.69
• Enterprise Value/Revenue: 3.12
• Enterprise Value/Gross Profit: 4.74
• Enterprise Value/Ebitda: 14.66
• 1Y Price Target: $66.40
• Price Target Upside: -3.57% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $77.00 ▲(11.82% Upside)

Comerica's overall stock score reflects its strong financial performance and positive technical indicators, which are the most significant factors. The company's reasonable valuation and positive earnings call further support the score, despite some risks related to deposit trends and expense outlook.

Positive Factors

Loan Growth

Loan growth is coming in better than expected.

Mergers and Acquisitions

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

Stock Performance

Comerica is the best-performing Super Regional bank stock, partly due to M&A speculation across the industry.

Negative Factors

Growth Outlook

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

Interest Income

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

Revenue Pressure

CMA is not immune to revenue pressures ahead, including a further pullback in loan demand and weaker customer-related fee trends.

Comerica Business Overview & Revenue Model

Company Description

Comerica Incorporated (CMA) is a financial services company headquartered in Dallas, Texas, primarily focused on banking and financial services. The company operates through three main segments: Business Bank, Retail Bank, and Wealth Management. Comerica offers a suite of products and services, including commercial and personal banking, cash management, mortgage lending, and investment management, catering to a diverse clientele ranging from individuals to businesses and institutions.

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: 68.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 68.86 is above the 20-day moving average (MA) of 68.82, above the 50-day MA of 66.22, and above the 200-day MA of 61.27, indicating a bullish trend. The MACD of 1.16 indicates Positive momentum. The RSI at 52.79 is Neutral, neither overbought nor oversold. The STOCH value of 51.81 is Neutral, 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	$9.36B	12.94	11.60%	1.39%	4.74%	10.10%
ONB	78 Outperform	$9.08B	13.52	8.00%	2.42%	15.94%	-0.47%
BPOP	78 Outperform	$8.59B	12.24	12.73%	2.17%	6.27%	45.08%
UMBF	78 Outperform	$9.39B	13.94	10.05%	1.28%	30.40%	12.40%
CMA	77 Outperform	$9.07B	13.46	11.07%	4.12%	-8.62%	15.37%
ZION	74 Outperform	$8.58B	10.47	13.23%	3.08%	2.64%	32.07%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

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.

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.

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.