Commerzbank (CBK) AI Stock Analysis

• Market Cap: €39.35B
• Dividend Yield: 1.82%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.97
• Revenue Growth: -2.40%
• EPS Growth: 19.42%
• Country: DE
• Employees: 39,069
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.48
• Shares Outstanding: 1,127,496,200
• 10 Day Avg. Volume: 2,861,897
• 30 Day Avg. Volume: 3,574,636
• PEG Ratio: 0.25
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 1.79
• P/FCF Ratio: -0.87
• 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: €35.58
• Price Target Upside: -0.11% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 75 Outperform
• Price Target: €39.00 ▲(9.49% Upside)

Commerzbank's overall stock score is driven primarily by its strong financial performance, characterized by revenue and profit growth and improved margins. The technical analysis supports a positive outlook with bullish momentum indicators. Valuation metrics suggest the stock is reasonably priced, offering moderate income potential. The absence of earnings call and corporate events data did not impact the score.

Positive Factors

Profit Margin Improvement

The improvement in profit margins indicates enhanced operational efficiency and profitability, supporting long-term financial health.

Debt-Free Position

Operating without debt enhances financial resilience and flexibility, allowing for strategic investments and growth without interest burdens.

Revenue Growth

Consistent revenue growth reflects strong market demand and effective business strategies, supporting long-term expansion and stability.

Negative Factors

Decline in Free Cash Flow

The significant decline in free cash flow suggests potential cash management issues, which could impact investment capacity and liquidity.

Low Equity Ratio

A low equity ratio indicates potential vulnerability in asset financing, which could affect financial stability during economic downturns.

Cash Generation Inefficiency

Negative cash flow relative to earnings highlights inefficiencies in cash generation, potentially limiting operational and strategic flexibility.

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 key streams. Primarily, it earns income from interest on loans and mortgages extended to retail and corporate clients. Additionally, the bank charges fees for transaction services and account maintenance, contributing to its non-interest income. Investment banking activities, including advisory services for mergers and acquisitions and underwriting, also provide substantial revenue. Commerzbank has established strategic partnerships with fintech companies and other financial institutions to enhance its service offerings and expand its market reach, further diversifying its revenue sources. The bank's investment in digital banking solutions aims to increase efficiency and attract a broader customer base, which is expected to positively impact its earnings in the long run.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.70B	25.25B	21.71B	14.26B	12.06B	11.37B
Gross Profit	12.77B	12.36B	11.81B	10.39B	9.64B	8.76B
EBITDA	3.74B	4.64B	4.17B	2.82B	980.00M	-1.69B
Net Income	2.69B	2.68B	2.22B	1.44B	430.00M	-2.87B
Balance Sheet
Total Assets	581.82B	554.65B	517.17B	477.44B	467.41B	506.92B
Cash, Cash Equivalents and Short-Term Investments	72.46B	89.72B	102.69B	86.65B	60.21B	81.21B
Total Debt	75.83B	54.89B	109.23B	43.77B	43.84B	126.68B
Total Liabilities	546.59B	518.93B	484.16B	446.50B	437.58B	478.04B
Stockholders Equity	33.83B	34.47B	31.99B	30.02B	28.85B	27.48B
Cash Flow
Free Cash Flow	0.00	-21.46B	19.28B	25.18B	-25.23B	32.78B
Operating Cash Flow	0.00	-20.32B	20.28B	25.86B	-24.26B	33.68B
Investing Cash Flow	0.00	-1.31B	-920.00M	-713.00M	-804.00M	-1.22B
Financing Cash Flow	0.00	565.00M	-1.29B	178.00M	-1.21B	2.21B

Commerzbank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 35.62
• 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 35.62 is above the 20-day moving average (MA) of 35.40, above the 50-day MA of 33.83, and above the 200-day MA of 30.01, indicating a neutral trend. The MACD of 0.60 indicates Positive momentum. The RSI at 49.05 is Neutral, neither overbought nor oversold. The STOCH value of 40.25 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	75 Outperform	€39.35B	15.57	8.78%	1.82%	-2.40%	19.42%
DBK	69 Neutral	€61.83B	10.49	9.15%	2.04%	-8.53%	62.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PCZ	66 Neutral	€497.10M	6.46	7.49%	7.13%	2.31%	-25.41%
UBK	44 Neutral	€154.81M	―	―	―	―	―