Canadian Bank of Commerce (CM) AI Stock Analysis

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Canadian Bank of Commerce

(TSX:CM)

Rating:78Outperform

Price Target:

C$118.00

▲(7.67% Upside)

The Canadian Bank of Commerce's strong financial performance, attractive valuation, and positive earnings call results are the primary drivers of its stock score. While technical indicators suggest potential short-term volatility, the bank's robust capital position and strategic growth initiatives, particularly in digital and AI innovations, support a positive long-term outlook. Attention to increased leverage and credit loss provisions is advised.

Canadian Bank of Commerce (CM) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$102.79B

Dividend Yield3.48%

Average Volume (3M)2.38M

Price to Earnings (P/E)13.1

Beta (1Y)0.89

Revenue Growth-0.39%

EPS Growth20.28%

CountryCA

Employees48,698

SectorFinancial

Sector Strength73

IndustryBanks - Diversified

Share Statistics

EPS (TTM)2.16

Shares Outstanding934,190,550

10 Day Avg. Volume2,952,728

30 Day Avg. Volume2,381,300

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.54

Enterprise Value/Revenue5.98

Enterprise Value/Gross Profit9.92

Enterprise Value/Ebitda21.81

Forecast

1Y Price Target

$111.40

Price Target Upside1.65% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering11

Canadian Bank of Commerce Business Overview & Revenue Model

Company DescriptionCanadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. The company offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services. It also provides day-to-day banking, borrowing and credit, specialty, investing and wealth, and international services; correspondent banking and online foreign exchange services; and cash management services. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

How the Company Makes MoneyThe Canadian Bank of Commerce generates revenue through various key streams, primarily focusing on net interest income from loans and deposits. The bank earns interest from loans provided to customers, which is typically higher than the interest it pays on deposits, creating a profit margin. Additionally, CM generates fee-based income from services such as account maintenance fees, transaction fees, and advisory services. Investment income from wealth management and investment products also contributes to the bank's revenue. Significant partnerships with financial technology firms allow CM to innovate and enhance its service offerings, further boosting its earnings potential.

Canadian Bank of Commerce Earnings Call Summary

Earnings Call Date:Aug 28, 2025

(Q3-2025)

% Change Since: |

Next Earnings Date:Dec 04, 2025

Earnings Call Sentiment Positive

CIBC reported a strong quarter with significant growth in net income, robust capital position, and positive operating leverage. The bank's digital and AI advancements were highlighted as key achievements. However, increased provisions for credit losses and challenges in the U.S. commercial real estate sector were notable concerns. Mortgage delinquency rates also showed some increase, particularly in stress-prone regions.

Q3-2025 Updates

Positive Updates

Strong Financial Performance

CIBC delivered net income of $2.1 billion, up 11% from the prior year, and earnings per share of $2.16, up 12%. Pre-provision, pre-tax earnings also increased by 12%.

Robust Capital Position

The bank ended the quarter with a CET1 ratio of 13.4%, while repurchasing 5.5 million common shares. Announced intention to launch another normal course issuer bid for 2% of outstanding common shares.

Positive Operating Leverage

CIBC achieved its 8th consecutive quarter of positive operating leverage, aided by broad-based growth and healthy margin expansion.

Digital and AI Innovations

CIBC's digital banking capabilities were recognized with the highest ranking in customer satisfaction in the J.D. Power study. Their AI-powered voice assistant won the 2025 Digital CX Award for Best Use of AI for Customer Experience.

Capital Markets Growth

CIBC Capital Markets reported a 43% increase in net income year-over-year, driven by higher underwriting, advisory activity, and global markets revenues.

Negative Updates

Increased Provisions for Credit Losses

Total provision for credit losses was up 16% from a year ago, with impaired PCLs at 33 basis points. This is due to an evolving economic environment.

U.S. Commercial Real Estate Challenges

Continued execution of a strategy to move away from certain commercial real estate elements, leading to slightly higher payoff activity and reduced utilization rates.

Mortgage Delinquency Increase

90-plus day delinquencies in the mortgage portfolio showed a moderate increase, with GVA and GTA regions exhibiting more stress.

Company Guidance

During the CIBC Q3 2025 earnings call, the bank reported robust financial results with key metrics indicating strong performance. CIBC achieved an adjusted net income of $2.1 billion, reflecting an 11% increase from the previous year, and an earnings per share of $2.16, up 12%. The bank's return on equity improved to 14.2%, marking the fifth consecutive quarter of year-over-year ROE improvement. The CET1 ratio stood at a solid 13.4%, and CIBC repurchased 5.5 million common shares, highlighting a strong capital position. The bank's operating leverage remained positive for the eighth consecutive quarter, driven by a 12% increase in pre-provision, pre-tax earnings and broad-based growth across all business units. The provision for credit losses increased by 16% year-over-year but remained within guidance, with impaired losses favorably low. CIBC continued to outperform in key areas such as digital banking, client satisfaction, and strategic client growth, particularly in capital markets, where U.S. revenue growth was up 37% year-to-date. The bank also announced plans for a new normal course issuer bid for 2% of its outstanding common shares, indicating confidence in its earnings trajectory and balance sheet strength.

Canadian Bank of Commerce Financial Statement Overview

Summary

The Canadian Bank of Commerce demonstrates strong revenue growth and profitability, though margins have slightly decreased. The balance sheet shows increased leverage, which could be a risk if not managed properly. Cash flow generation is robust, with significant growth in free cash flow. Overall, the financial health is solid, but attention to leverage and cash conversion is advised.

Income Statement

Very Positive

The Canadian Bank of Commerce shows strong revenue growth with a 24.84% increase in TTM, indicating robust business expansion. The gross profit margin is healthy at 60.34%, and the net profit margin is solid at 18.63%, reflecting effective cost management. However, the margins have decreased compared to the previous year, suggesting potential pressure on profitability.

Balance Sheet

Positive

The bank's debt-to-equity ratio has increased to 5.90, indicating higher leverage, which could pose a risk if not managed carefully. Return on equity is strong at 13.31%, showing efficient use of equity to generate profits. The equity ratio is stable, but the high leverage remains a concern.

Cash Flow

Positive

Free cash flow has grown by 23.6% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is low, suggesting potential issues in converting income into cash. However, the free cash flow to net income ratio is high at 93.56%, showing strong cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.63B	23.61B	21.31B	20.78B	19.86B	16.25B
Gross Profit	26.32B	23.52B	21.29B	20.80B	19.80B	16.25B
EBITDA	11.97B	10.34B	8.05B	8.97B	9.28B	5.80B
Net Income	8.13B	7.12B	5.00B	6.22B	6.43B	3.79B
Balance Sheet
Total Assets	1.10T	1.04T	975.72B	943.60B	837.68B	769.55B
Cash, Cash Equivalents and Short-Term Investments	139.28B	93.25B	80.52B	92.72B	88.15B	117.07B
Total Debt	369.24B	208.49B	194.50B	187.45B	164.17B	45.86B
Total Liabilities	1.04T	982.98B	922.51B	893.22B	791.85B	728.22B
Stockholders Equity	62.60B	58.73B	52.98B	50.18B	45.65B	41.15B
Cash Flow
Free Cash Flow	16.17B	10.00B	11.14B	21.61B	-4.17B	59.99B
Operating Cash Flow	17.29B	11.09B	12.15B	22.71B	-3.33B	60.30B
Investing Cash Flow	-6.12B	-20.75B	-20.76B	-24.39B	-3.51B	-19.41B
Financing Cash Flow	-3.80B	-2.61B	-2.16B	-1.61B	-1.95B	-1.22B

Canadian Bank of Commerce Technical Analysis

Technical Analysis Sentiment

Positive

Last Price109.59

Price Trends

50DMA

102.03

Positive

100DMA

96.43

Positive

200DMA

90.86

Positive

Market Momentum

MACD

2.48

Negative

RSI

74.69

Negative

STOCH

91.72

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CM, the sentiment is Positive. The current price of 109.59 is above the 20-day moving average (MA) of 105.28, above the 50-day MA of 102.03, and above the 200-day MA of 90.86, indicating a bullish trend. The MACD of 2.48 indicates Negative momentum. The RSI at 74.69 is Negative, neither overbought nor oversold. The STOCH value of 91.72 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CM.

Canadian Bank of Commerce Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CM	78 Outperform	$102.79B	13.14	13.40%	3.48%	-0.39%	20.28%
BMO	77 Outperform	$90.72B	15.40	10.20%	3.58%	15.63%	66.95%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
BNS	―	$79.74B	16.56	8.64%	4.84%	―	―
RY	―	$203.76B	15.17	14.60%	2.95%	―	―
TD	―	$134.40B	9.11	17.36%	3.86%	―	―
NTIOF	―	$42.31B	14.66	13.25%	3.04%	―	―

* Financial Sector Average

Performance Comparison

TSE:CM

Canadian Bank of Commerce

109.59

29.55

36.91%

BMO

Bank Of Montreal

126.31

43.30

52.16%

BNS

Bank Of Nova Scotia

63.38

13.74

27.68%

Royal Bank Of Canada

144.14

24.96

20.94%

Toronto Dominion Bank

76.79

16.87

28.15%

NTIOF

National Bank of Canada

107.86

17.86

19.84%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025