Comerica (CMA) AI Stock Analysis

• Market Cap: $11.69B
• Dividend Yield: 3.21%
• Average Volume (3M): 1.33M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 0.96
• 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: 127,794,130
• 10 Day Avg. Volume: 1,281,791
• 30 Day Avg. Volume: 1,328,705
• 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: 1.17
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.25
• Enterprise Value/Ebitda: 13.56
• 1Y Price Target: $94.44
• Price Target Upside: 4.63% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $99.00 ▲(9.68% Upside)

Score is driven primarily by solid profitability and balance-sheet stability, supported by strong technical uptrend signals. The main offset is weak cash-flow conversion and sharply lower free-cash-flow growth. Valuation and the positive merger catalyst provide additional support but do not fully remove the cash-flow risk.

Positive Factors

Profitability margins

Sustained high operating and net margins indicate efficient core banking and expense control, supporting durable earnings power across cycles. Strong margins help fund dividends, capital needs and integration costs from strategic moves, reducing sensitivity to modest revenue dips.

Prudent leverage

Relatively low leverage for a regional bank and a mid-teens ROE profile signal balance‑sheet resilience and capital conservatism. This structural strength enhances regulatory flexibility, loss absorption capacity and supports longer‑term strategic options such as M&A or buybacks.

Scale via merger

Combining with Fifth Third materially increases scale, diversifies revenue mix and broadens geographic reach. Structural benefits include better funding access, cost synergies and enhanced commercial banking capabilities, which can sustainably improve competitive positioning and long-term growth opportunities.

Negative Factors

Free cash flow collapse

A near‑total drop in free cash flow and weak cash conversion denote a structural squeeze on internally generated funds. Over months this limits capacity to self‑fund dividends, capital initiatives or integration costs, increasing reliance on external financing and raising financial flexibility risk.

Revenue weakness

Flattening to negative revenue growth suggests underlying top‑line challenges in core lending or fee businesses. Persistently weak revenue constrains scalable earnings expansion, forces tougher cost tradeoffs, and reduces optionality for reinvestment or margin improvement over the medium term.

Governance and activist risk

Public activist opposition and litigation tied to the merger and executive incentives represent a structural governance risk. Prolonged disputes can divert management focus, increase legal and execution costs, invite regulatory scrutiny, and potentially delay or complicate strategic integration.

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	4.81B	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	1.01B	984.00M	1.23B	1.57B	1.59B	729.00M
Net Income	717.00M	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet
Total Assets	77.38B	79.30B	85.83B	85.41B	94.62B	88.13B
Cash, Cash Equivalents and Short-Term Investments	16.98B	14.18B	26.77B	25.45B	39.86B	30.97B
Total Debt	5.42B	6.67B	9.77B	6.24B	2.80B	5.73B
Total Liabilities	69.95B	72.75B	79.43B	80.22B	86.72B	80.08B
Stockholders Equity	7.43B	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow
Free Cash Flow	24.00M	448.00M	1.10B	556.00M	564.00M	849.00M
Operating Cash Flow	125.00M	601.00M	1.25B	638.00M	634.00M	928.00M
Investing Cash Flow	773.00M	3.26B	3.49B	-9.95B	1.72B	-4.60B
Financing Cash Flow	-2.25B	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 90.26
• 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 90.26 is above the 20-day moving average (MA) of 89.19, above the 50-day MA of 83.46, and above the 200-day MA of 67.81, indicating a bullish trend. The MACD of 2.07 indicates Positive momentum. The RSI at 57.70 is Neutral, neither overbought nor oversold. The STOCH value of 54.36 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
ONB	80 Outperform	$9.09B	13.68	8.26%	2.43%	20.72%	3.63%
WTFC	78 Outperform	$9.77B	13.41	11.69%	1.40%	3.58%	13.93%
UMBF	77 Outperform	$9.23B	13.75	11.06%	1.37%	38.81%	10.38%
BPOP	77 Outperform	$8.52B	11.32	13.05%	2.31%	5.87%	53.36%
ZION	74 Outperform	$8.89B	10.77	12.71%	2.97%	0.12%	27.30%
CMA	69 Neutral	$11.69B	17.51	9.64%	3.21%	-7.07%	31.09%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Comerica Corporate Events

Comerica shareholders approve merger with Fifth Third Bancorp

On January 6, 2026, Comerica stockholders held a special meeting to vote on the proposed acquisition of Comerica by Fifth Third Bancorp under a merger agreement signed on October 5, 2025, with approximately 75.5% of eligible shares represented, constituting a quorum. Stockholders overwhelmingly approved the merger, with about 93.7 million votes in favor versus 2.8 million against, and also backed, on an advisory basis, the merger-related compensation for Comerica’s named executive officers, while an adjournment proposal was approved but ultimately not needed because the merger garnered sufficient support. In a joint announcement the same day, Fifth Third and Comerica highlighted that both companies’ shareholders had approved the combination, paving the way for closing, targeted for the first quarter of 2026, which would create the ninth-largest U.S. bank with roughly $290 billion in assets and an expanded footprint across many of the nation’s fastest-growing large markets, positioning the combined institution for greater scale, competitive strength and broader service reach for customers and communities.

The most recent analyst rating on (CMA) stock is a Buy with a $106.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Issues Supplemental Disclosures on Fifth Third Merger

Comerica has detailed the background, terms and shareholder disclosures surrounding its October 5, 2025 agreement to merge with Fifth Third Bancorp in an all‑stock transaction under which Comerica will be absorbed into a Fifth Third subsidiary, followed by subsequent mergers of Comerica’s banking units into Fifth Third Bank, National Association. In response to stockholder litigation and demand letters alleging deficiencies in its definitive proxy statement ahead of a January 6, 2026 special meeting, Comerica has issued supplemental disclosures clarifying what happens if the merger is not completed or if either side’s investors vote the deal down, outlining when a reciprocal $500 million termination fee would be payable, updating the regulatory approval status including OCC clearance for the bank combinations on December 15, 2025, and providing expanded detail on financial advisor valuation work as well as the extensive 2023–2025 strategic review and negotiations that led the board to favor Fifth Third over another suitor and to approve a merger exchange ratio of 1.8663 Fifth Third shares per Comerica share and a lucrative transition package and board role for CEO Curtis Farmer, all of which are intended to support shareholder decision‑making while reducing legal and timing risks to the transaction.

The most recent analyst rating on (CMA) stock is a Buy with a $93.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

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.