Comerica (CMA) AI Stock Analysis

• Market Cap: $8.79B
• Dividend Yield: 4.12%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 13.2
• Beta (1Y): 1.24
• Revenue Growth: -8.62%
• EPS Growth: 15.37%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.42
• Shares Outstanding: 128,525,470
• 10 Day Avg. Volume: 1,590,158
• 30 Day Avg. Volume: 1,646,198
• 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: 1.74
• Enterprise Value/Revenue: 3.15
• Enterprise Value/Gross Profit: 4.77
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $67.35
• Price Target Upside: -2.29% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 75 Outperform
• Price Target: $77.00 ▲(11.71% Upside)

Comerica's overall stock score reflects strong financial performance and positive technical indicators. The valuation is attractive with a reasonable P/E ratio and solid dividend yield. Earnings call insights show strategic growth initiatives, though challenges like deposit declines and rising expenses need attention.

Positive Factors

Capitalization Strength

A strong CET1 ratio indicates robust capitalization, providing financial stability and the ability to withstand economic uncertainties.

Strategic Investments in Payments

Investments in payment solutions enhance competitive advantage, potentially increasing market share and customer engagement.

Cash Flow Generation

Strong cash flow generation supports financial flexibility, enabling strategic investments and shareholder returns.

Negative Factors

Deposit Decline

Declining deposits can limit liquidity and affect lending capacity, posing a challenge to maintaining growth and financial health.

Increased Deposit Pricing

Rising deposit costs can compress net interest margins, impacting profitability and potentially leading to higher customer attrition.

Expense Increase Expectations

Anticipated expense increases could pressure margins, necessitating efficiency improvements to sustain profitability.

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 shows strong profitability margins and cash flow generation. However, challenges include declining revenue growth and increased leverage, which could impact long-term 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	4.86B	4.99B	5.25B	3.74B	3.02B	3.09B
Gross Profit	3.21B	3.19B	3.50B	3.47B	3.35B	2.38B
EBITDA	1.02B	984.00M	1.23B	1.57B	1.59B	729.00M
Net Income	725.00M	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet
Total Assets	77.99B	79.30B	85.83B	85.41B	94.62B	88.13B
Cash, Cash Equivalents and Short-Term Investments	12.90B	14.18B	26.77B	25.45B	39.86B	30.97B
Total Debt	8.69B	6.67B	9.77B	6.24B	2.80B	5.73B
Total Liabilities	71.13B	72.75B	79.43B	80.22B	86.72B	80.08B
Stockholders Equity	6.86B	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow
Free Cash Flow	1.34B	448.00M	1.10B	556.00M	564.00M	849.00M
Operating Cash Flow	1.44B	601.00M	1.25B	638.00M	634.00M	928.00M
Investing Cash Flow	1.96B	3.26B	3.49B	-9.95B	1.72B	-4.60B
Financing Cash Flow	-2.92B	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.93
• 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 68.93 is below the 20-day moving average (MA) of 69.18, above the 50-day MA of 67.51, and above the 200-day MA of 60.76, indicating a neutral trend. The MACD of 0.51 indicates Positive momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 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
UMBF	80 Outperform	9.02B	13.76	7.25%	1.35%	30.40%	12.40%
BPOP	79 Outperform	8.59B	12.27	12.11%	2.24%	6.27%	45.08%
WTFC	79 Outperform	8.82B	12.58	10.24%	1.48%	4.74%	10.10%
CMA	75 Outperform	$8.79B	13.16	11.07%	4.12%	-8.62%	15.37%
ONB	74 Outperform	8.64B	13.21	6.99%	2.54%	15.94%	-0.47%
ZION	72 Outperform	8.40B	10.45	12.80%	3.06%	2.64%	32.07%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Comerica Corporate Events

Comerica Executives to Present at Barclays Conference

Comerica announced that its top executives will present at the 2025 Barclays Global Financial Services Conference on September 9, 2025. The presentation will highlight Comerica’s strategic initiatives aimed at driving growth and enhancing its market position, with a focus on leveraging its relationship model and expanding in high-growth markets, which could have significant implications for its stakeholders.

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.