Commerzbank (CBK) AI Stock Analysis

• Market Cap: €32.23B
• Dividend Yield: 2.39%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 11.6
• Beta (1Y): 0.88
• Revenue Growth: 17.06%
• EPS Growth: 25.66%
• Country: DE
• Employees: 39,069
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.73
• Shares Outstanding: 1,184,669,100
• 10 Day Avg. Volume: 4,733,578
• 30 Day Avg. Volume: 4,128,406
• PEG Ratio: 0.04
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.44
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €27.07
• Price Target Upside: -0.51% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 74 Outperform
• Price Target: ―

Commerzbank's overall score reflects its strong financial performance, with notable revenue and profit growth and a solid balance sheet with no reported debt. However, challenges in cash flow management are a concern. Technical analysis indicates strong upward momentum, although the lack of additional indicators limits the analysis. Valuation metrics suggest the stock is undervalued, offering potential upside.

Commerzbank Business Overview & Revenue Model

Company Description

Commerzbank AG provides banking and capital market services to private and small business customers, multinational groups, financial service providers, and institutional clients worldwide. It operates through two segments, Private and Small-Business Customers, and Corporate Clients. The company offers accounts, commercial payments, payment enabling, clearing and custody, and other services; trade services, including documentary collection, letters of credit, guarantees, trade facilitation, supply chain financing, buyer's credit, and forfaiting services; and bilateral loans, club deals, Schuldschein instruments, syndicated loans, bonds, private placements, other debt instruments, and Islamic financing services. It also provides money market, and commodities and precious metals products; interest, currency, and liquidity management services, as well as wealth management services. The company operates approximately 790 branches. Commerzbank AG was founded in 1870 and is headquartered in Frankfurt am Main, Germany.

How the Company Makes Money

Commerzbank generates revenue through various streams. Primarily, it earns money from interest income derived from lending activities, including mortgages, personal loans, and corporate loans. The bank also makes money through transaction fees and commissions from its retail and corporate banking activities, encompassing payment processing, asset management, and securities trading. Additionally, Commerzbank engages in investment banking activities, offering services such as advisory, capital markets, and risk management solutions. The bank's earnings are further supported by strategic partnerships and collaborations that enhance its product offerings and market reach. Furthermore, cost management and operational efficiency play significant roles in maximizing its profitability.

Commerzbank Financial Statement Overview

Summary

Commerzbank's financial performance in 2024 shows strong revenue and profit growth, supported by improved margins and no reported debt, which strengthens its financial resilience. However, the decline in free cash flow poses a challenge, indicating potential issues in cash management or investment efficiency. The stable equity ratio and improved ROE reflect a balanced approach to financing, though the bank should focus on enhancing cash flow stability.

Income Statement

Commerzbank has demonstrated strong revenue growth, with a notable increase from €9.915 billion in 2023 to €10.364 billion in 2024, marking a growth rate of approximately 4.53%. The net profit margin improved significantly from 22.43% in 2023 to 25.82% in 2024, reflecting enhanced profitability. The EBIT margin also saw substantial growth, reaching 100% in 2024 from 34.65% in 2023. However, the absence of EBITDA data limits a full margin analysis.

Balance Sheet

The equity ratio improved slightly to 6.28% in 2024 from 6.19% in 2023, indicating stable equity relative to total assets. Return on equity increased to 7.69% in 2024 from 6.95% in 2023, showcasing better efficiency in generating profits from shareholder equity. The company has no reported debt in 2024, which is a strong position; however, the low equity ratio suggests potential vulnerability in asset financing.

Cash Flow

The cash flow position weakened with a negative free cash flow of €-21.461 billion in 2024, a significant decline from €19.089 billion in 2023, indicating challenges in generating cash. The operating cash flow to net income ratio turned negative, highlighting inefficiencies in cash generation relative to earnings. Despite these issues, significant cash and short-term investments provide some liquidity buffer.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.36B	9.91B	8.67B	9.65B	8.77B
Gross Profit	12.36B	9.91B	8.67B	9.65B	8.77B
EBITDA	0.00	0.00	2.82B	974.00M	0.00
Net Income	2.68B	2.22B	1.44B	430.00M	-2.89B
Balance Sheet
Total Assets	565.99B	517.17B	477.44B	473.04B	506.92B
Cash, Cash Equivalents and Short-Term Investments	89.72B	65.82B	86.65B	60.21B	81.21B
Total Debt	54.89B	109.23B	43.77B	43.84B	46.12B
Total Liabilities	518.93B	484.16B	43.77B	43.84B	46.12B
Stockholders Equity	34.47B	31.99B	30.02B	28.85B	27.48B
Cash Flow
Free Cash Flow	-21.46B	19.28B	25.18B	-25.23B	32.78B
Operating Cash Flow	-20.32B	20.09B	25.86B	-24.26B	33.68B
Investing Cash Flow	-1.31B	-920.00M	-713.00M	-804.00M	-1.22B
Financing Cash Flow	565.00M	-1.09B	178.00M	-1.21B	2.21B

Commerzbank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.21
• 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 DE:CBK, the sentiment is Neutral. The current price of 27.21 is below the 20-day moving average (MA) of 27.72, above the 50-day MA of 25.84, and above the 200-day MA of 19.57, indicating a neutral trend. The MACD of 0.46 indicates Positive momentum. The RSI at 50.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:CBK.

Commerzbank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CBK	74 Outperform	€32.23B	11.58	9.28%	2.39%	17.06%	25.66%
Sector *	67 Neutral	$16.66B	11.44	9.71%	3.91%	11.61%	-10.70%
DB		$59.31B	12.46	6.68%	2.54%	―	―
PCZ	71 Outperform	€560.71M	5.84	9.17%	5.38%	11.25%	-8.00%
QB7		€154.55M	22.25		3.90%	―	―
UBK		€178.78M	―		―	―	―
MBK		€120.57M	10.09		3.23%	―	―