Comerica (CMA) AI Stock Analysis

• Market Cap: $11.33B
• Dividend Yield: 3.21%
• Average Volume (3M): 3.04M
• Price to Earnings (P/E): 16.8
• Beta (1Y): 0.98
• Revenue Growth: -7.07%
• EPS Growth: 31.09%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.27
• Shares Outstanding: 127,794,130
• 10 Day Avg. Volume: 6,714,521
• 30 Day Avg. Volume: 3,037,729
• PEG Ratio: 3.09
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 2.39
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 3.36
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 16.29
• 1Y Price Target: $91.29
• Price Target Upside: 2.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $101.00 ▲(13.91% Upside)

Overall score is driven by stable profitability and balance-sheet strength, reinforced by clear technical uptrend. The main constraint is weak recent cash-flow performance (sharp free-cash-flow decline and low cash conversion). Valuation is reasonable with a supportive dividend, and corporate events are a net positive given the merger approvals and expected closing.

Positive Factors

Strong profit margins

Sustained net and EBITDA margins indicate durable earnings efficiency and disciplined expense control in core banking operations. Strong margins support internal capital generation, dividend capacity and buffer profitability through rate cycles, aiding long-term franchise stability.

Prudent balance-sheet metrics

Relatively low leverage and a solid equity ratio provide a structural capital cushion against loan losses and market stress. These metrics support regulatory compliance, preserve lending capacity, and give strategic optionality for M&A or capital returns over the medium term.

Approved merger expands scale

Regulatory and shareholder approvals crystallize a transformational merger that materially increases scale, diversifies geographic mix and products, and should enable revenue synergies and cost efficiencies, strengthening competitive position over the coming years.

Negative Factors

Weak cash conversion

Severe free-cash-flow decline and low conversion of earnings into operating cash reduce internal funding for capital, dividends and loan growth. Persistent cash conversion weakness strains financial flexibility and raises reliance on external funding or asset sales.

Revenue decline trend

Recent revenue contraction signals pressure on core earning streams, potentially from loan mix shifts or fee compression. If persistent, weaker top-line growth limits margin expansion opportunities and constrains long-term return-on-equity improvement.

Merger-related governance and litigation risk

Proxy supplements and litigation around the transaction highlight governance friction and potential legal costs. These distractions and possible payouts increase execution risk, integration burden and could erode shareholder value if integration or litigation outcomes are adverse.

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

Mixed fundamentals: strong profitability margins (net margin ~14.9%, EBITDA margin ~21.1%) and a stable balance sheet with prudent leverage (D/E ~0.73, ROE ~10.3%), but cash generation is a key weakness with sharply negative free-cash-flow growth (-98.2%) and weak cash conversion (operating cash flow to net income ~0.20%).

Income Statement

Comerica's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a slight decline in total revenue and a negative revenue growth rate of -1.008%. However, the company maintains a healthy gross profit margin of 67.23% and a net profit margin of 14.91%. EBIT and EBITDA margins are also solid at 18.98% and 21.06%, respectively. Despite the recent revenue decline, Comerica's profitability metrics remain strong, indicating effective cost management.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.73, which is relatively low for the banking industry, suggesting prudent leverage management. Return on equity (ROE) is at 10.29%, indicating decent profitability relative to shareholder equity. The equity ratio stands at 9.60%, showing a moderate level of equity financing. Overall, Comerica's balance sheet demonstrates a balanced approach to debt and equity, with a focus on maintaining financial stability.

Cash Flow

Comerica's cash flow statement reveals some challenges, particularly in free cash flow growth, which has significantly declined by -98.21% in the TTM period. The operating cash flow to net income ratio is low at 0.20%, indicating potential issues in converting income into cash. The free cash flow to net income ratio is 19.20%, suggesting limited free cash flow relative to net income. While the company generates positive cash flow, the recent decline in free cash flow growth is a concern that needs addressing.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.80B	4.99B	5.25B	3.74B	3.02B
Gross Profit	3.27B	3.19B	3.50B	3.47B	3.35B
EBITDA	989.00M	984.00M	1.23B	1.57B	1.59B
Net Income	723.00M	698.00M	881.00M	1.15B	1.17B
Balance Sheet
Total Assets	80.07B	79.30B	85.83B	85.41B	94.62B
Cash, Cash Equivalents and Short-Term Investments	15.78B	14.18B	26.77B	25.45B	39.86B
Total Debt	5.42B	6.67B	9.77B	6.24B	2.80B
Total Liabilities	72.37B	72.75B	79.43B	80.22B	86.72B
Stockholders Equity	7.71B	6.54B	6.41B	5.18B	7.90B
Cash Flow
Free Cash Flow	0.00	448.00M	1.10B	556.00M	564.00M
Operating Cash Flow	0.00	601.00M	1.25B	638.00M	634.00M
Investing Cash Flow	0.00	3.26B	3.49B	-9.95B	1.72B
Financing Cash Flow	0.00	-6.56B	-1.52B	-7.08B	4.55B

Comerica Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 88.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMA, the sentiment is Neutral. The current price of 88.67 is below the 20-day moving average (MA) of 92.26, above the 50-day MA of 87.28, and above the 200-day MA of 70.25, indicating a neutral trend. The MACD of 1.45 indicates Positive momentum. The RSI at 43.95 is Neutral, neither overbought nor oversold. The STOCH value of 19.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMA.

Comerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WTFC	79 Outperform	$9.88B	12.94	12.11%	1.40%	3.58%	13.93%
ONB	77 Outperform	$9.55B	13.65	22.83%	2.43%	20.72%	3.63%
UMBF	76 Outperform	$9.66B	13.69	12.59%	1.37%	38.81%	10.38%
BPOP	75 Outperform	$8.90B	10.86	14.05%	2.31%	5.87%	53.36%
ZION	72 Outperform	$8.85B	9.97	13.39%	2.97%	0.12%	27.30%
CMA	70 Outperform	$11.33B	16.79	10.09%	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 Reports Strong Earnings Ahead of Fifth Third Merger

Comerica reported unaudited consolidated financial results showing steady profitability and solid capital ahead of its pending merger with Fifth Third Bancorp, and management said it will forgo the usual earnings conference call or webcast because of the transaction. For the quarter ended December 31, 2025, Comerica generated net income of $176 million, or $1.27 per diluted share, and $201 million excluding merger-related expenses, while full-year 2025 net income rose to $723 million from $698 million in 2024, with modestly higher returns on assets and continued capital strength, including a common equity tier 1 ratio of 12.02% and stable loan and deposit balances, underscoring resilience for shareholders as the bank transitions toward integration with Fifth Third.

The most recent analyst rating on (CMA) stock is a Buy with a $103.00 price target. To see the full list of analyst forecasts on Comerica stock, see the CMA Stock Forecast page.

Comerica Merger With Fifth Third Gains Final Approvals

On January 13, 2026, Comerica and Fifth Third Bancorp announced they had received all material regulatory and shareholder approvals for their planned merger, including Federal Reserve approval to combine and earlier clearances from the Office of the Comptroller of the Currency on December 15, 2025 and both companies’ shareholders on January 6, 2026. The transaction, initially agreed on October 5, 2025 and expected to close on February 1, 2026 pending remaining customary conditions, will see Comerica merge into a Fifth Third subsidiary and its banking units ultimately consolidated into Fifth Third Bank, National Association, creating the ninth-largest U.S. bank with $290 billion in assets and a footprint spanning 17 of the 20 fastest-growing large U.S. markets; management touts a stronger, more diversified franchise, near-term earnings accretion and substantial revenue synergies, while integration teams work toward a seamless transition with limited immediate disruption for customers and staff and full system and brand conversions later in 2026.

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.

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.