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Comerica Inc. (CMA)
NYSE:CMA
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Comerica (CMA) AI Stock Analysis

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CMA

Comerica

(NYSE:CMA)

Rating:76Outperform
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 (CMA) vs. SPDR S&P 500 ETF (SPY)

Comerica Business Overview & Revenue Model

Company DescriptionComerica 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 MoneyComerica 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 Earnings Call Summary

Earnings Call Date:Jul 18, 2025
(Q2-2025)
|
% Change Since: 8.11%|
Next Earnings Date:Oct 17, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive performance for Comerica Bank with significant growth in earnings per share, loan growth, and strong capitalization. However, the challenges in deposit decline and criticized loans were noted. Despite these challenges, the highlights significantly outweigh the lowlights, indicating a strong quarter for the bank.
Q2-2025 Updates
Positive Updates
Earnings per Share Increase
Reported earnings per share of $1.42, representing an almost 14% increase over the prior quarter.
Loan Growth
Average loans up almost 1% and period-end loans up approximately 3%, with total commitments increased by $400 million.
Strong Capitalization
Capitalization remained a strength with an estimated CET1 of 11.94%, well above the 10% strategic target.
Non-Interest Income Growth
Non-interest income increased by $20 million with growth across most customer line items.
Improved Efficiency Ratio
Both non-interest income and non-interest expense improved, resulting in a lower efficiency ratio.
Negative Updates
Deposit Decline
Average deposits declined just over 1%, with decreases in retail, corporate banking, technology, and life sciences.
Increased Deposit Pricing
Deposit pricing increased four basis points due to competitive environment and funding needs.
Criticized Loans
Moderate increase in criticized loans, particularly in core middle market, largely due to consumer-related pressures.
Company Guidance
During Comerica Bank's second quarter 2025 earnings call, several key metrics were highlighted. The bank reported an earnings per share (EPS) increase of nearly 14% from the previous quarter, reaching $1.42. Loans saw a growth of approximately 3% by period-end, while average loans were up nearly 1%. The capitalization remained robust with an estimated Common Equity Tier 1 (CET1) ratio of 11.94%, surpassing the 10% strategic target. Deposit pricing increased by four basis points, with non-interest bearing deposits stable at 38% of total deposits. The bank's efficiency ratio improved, driven by a $23 million decrease in expenses, alongside a $20 million increase in non-interest income. Comerica returned $193 million to shareholders through dividends and share repurchases, maintaining strong capitalization. The bank also reaffirmed its full-year 2025 guidance, projecting net interest income growth of 5% to 7%, with expectations of consistent loan and deposit growth in the latter half of the year.

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
75
Positive
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
70
Positive
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
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.99B5.25B3.74B3.02B3.09B
Gross Profit3.19B3.50B3.47B3.35B2.38B
EBITDA984.00M1.23B1.57B1.59B729.00M
Net Income698.00M881.00M1.15B1.17B497.00M
Balance Sheet
Total Assets79.30B85.83B85.41B94.62B88.13B
Cash, Cash Equivalents and Short-Term Investments14.18B26.77B25.45B39.86B30.97B
Total Debt6.67B9.77B6.24B2.80B5.73B
Total Liabilities72.75B79.43B80.22B86.72B80.08B
Stockholders Equity6.54B6.41B5.18B7.90B8.05B
Cash Flow
Free Cash Flow448.00M1.10B556.00M564.00M849.00M
Operating Cash Flow601.00M1.25B638.00M634.00M928.00M
Investing Cash Flow3.26B3.49B-9.95B1.72B-4.60B
Financing Cash Flow-6.56B-1.52B-7.08B4.55B13.62B

Comerica Technical Analysis

Technical Analysis Sentiment
Positive
Last Price67.48
Price Trends
50DMA
59.45
Positive
100DMA
57.26
Positive
200DMA
60.27
Positive
Market Momentum
MACD
2.17
Negative
RSI
69.45
Neutral
STOCH
96.90
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 Risk Analysis

Comerica disclosed 34 risk factors in its most recent earnings report. Comerica reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Comerica Peers Comparison

Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
$8.89B12.8111.60%1.43%4.30%10.10%
79
Outperform
$10.13B12.569.49%2.66%4.65%7.12%
78
Outperform
$8.70B15.0315.26%2.84%5.99%7.75%
76
Outperform
$8.87B12.8011.07%4.21%-7.80%15.43%
72
Outperform
$9.19B10.9912.58%1.81%7.06%14.94%
70
Outperform
$8.08B14.189.32%1.00%10.19%48.39%
69
Neutral
€22.21B30.0810.88%5.00%3.59%-0.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMA
Comerica
67.48
16.60
32.63%
CFR
Cullen/Frost Bankers
134.93
18.72
16.11%
PNFP
Pinnacle Financial Partners
91.56
-5.65
-5.81%
WBS
Webster Financial
59.96
12.24
25.65%
WTFC
Wintrust Financial
132.11
23.77
21.94%
WAL
Western Alliance
82.18
2.25
2.81%

Comerica Corporate Events

Business Operations and Strategy
Comerica Executives to Present at Financials Conference
Positive
Jun 10, 2025

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.

Business Operations and Strategy
Comerica Announces Redemption of Preferred Stock Series A
Neutral
Jun 10, 2025

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.

Executive/Board Changes
Comerica’s Chief Risk Officer Resigns, Interim Appointed
Neutral
May 14, 2025

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.

Executive/Board ChangesShareholder Meetings
Comerica Shareholders Approve Key Decisions at Annual Meeting
Neutral
Apr 30, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025