Canadian Imperial Bank Of Commerce (TSE:CM)
TSX:CM
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Canadian Bank of Commerce
(TSX:CM)
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Rating:69Neutral
Price Target:
C$147.00
â–²(14.96% Upside)
Action:ReiteratedDate:03/26/26
The score is driven by strong valuation (low P/E with a ~3% dividend) and a broadly positive earnings call with reiterated guidance and strong Q1 execution. These positives are tempered by financial statement risks—especially weak/negative and volatile cash flow and elevated leverage—and only neutral-to-mixed technical momentum.
Positive Factors
Profitability / ROE
Sustained mid‑teens ROE and healthy net margins indicate the bank converts revenue into return efficiently. This profitability supports capital formation, dividend and buyback capacity, and long‑term reinvestment in branches and digital capabilities that underpin durable earnings.
Negative Factors
Weak Cash Generation
Volatile and weak cash conversion limits internal funding for growth and capital returns, increasing reliance on external or wholesale funding. Persistent negative free cash flow raises uncertainty about sustainable dividend/buyback pacing and reduces financial flexibility in stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability / ROE
Sustained mid‑teens ROE and healthy net margins indicate the bank converts revenue into return efficiently. This profitability supports capital formation, dividend and buyback capacity, and long‑term reinvestment in branches and digital capabilities that underpin durable earnings.
Read all positive factors
Canadian Bank of Commerce (CM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$118.49B
Dividend Yield3.07%
Average Volume (3M)2.81M
Price to Earnings (P/E)9.4
Beta (1Y)0.63
Revenue Growth-3.13%
EPS Growth18.22%
CountryCA
Employees48,698
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.76
Shares Outstanding926,610,600
10 Day Avg. Volume3,369,253
30 Day Avg. Volume2,805,397
Financial Highlights & Ratios
PEG Ratio0.71
Price to Book (P/B)1.70
Price to Sales (P/S)1.75
P/FCF Ratio8.54
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$143.73Price Target Upside12.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)10.23
Revenue Forecast (FY)C$32.14B
Canadian Bank of Commerce Business Overview & Revenue Model
Company Description
Canadian 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 compan...
How the Company Makes Money
CIBC primarily makes money by earning net interest income and non-interest (fee-based) income across its banking and wealth/capital-markets activities.
1) Net interest income (spread-based revenue)
- Core driver: CIBC takes deposits (e.g., chequi...
Canadian Bank of Commerce Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive picture: multiple strong headline metrics (EPS, revenue, ROE, noninterest income and Capital Markets performance), positive operating leverage for the tenth consecutive quarter, solid capital and liquidity positions, and clear progress on digital and AI initiatives. Credit costs and impaired provisions rose in some commercial and consumer pockets and consumer delinquencies increased modestly, but management characterized these as within expectations, attributed impaired spikes to a small number of accounts, and expressed confidence in coverage levels and full-year guidance. Given the weight of strong financial and strategic execution metrics versus contained and well-articulated credit/seasonal headwinds, the overall tone is constructive and optimistic.Positive Updates
Strong Earnings Per Share Performance
Reported EPS of $3.21 (up 47% YoY, included income tax recoveries treated as an item of note); adjusted EPS of $2.76 (up 25% YoY).
Negative Updates
Higher Credit Provisions and Impaired Provisions
Total provision for credit losses was $568 million in Q1 (down from $605 million last quarter, ~-6% QoQ). Performing provision $48 million; impaired provisions $520 million (up $23 million QoQ). Impaired loss rate was 35 bps.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings Per Share Performance
Reported EPS of $3.21 (up 47% YoY, included income tax recoveries treated as an item of note); adjusted EPS of $2.76 (up 25% YoY).
Read all positive updates
Company Guidance
Management said the year is off to a strong start and reiterated guidance for continued robust, well‑diversified growth with a stable‑to‑gradual positive bias on net interest margins and confidence in full‑year credit guidance and capital plans (including a roughly 30 bps CET1 benefit in Q2 from lower operational risk weights). Key Q1 metrics they highlighted: reported EPS $3.21 (up 47%) and adjusted EPS $2.76 (up 25%); revenues $8.4B (up 15%); adjusted net income $2.7B (up 23%); pre‑provision earnings +19%; expenses +12% delivering positive operating leverage of ~360 bps (3.6%); adjusted ROE 17.4% (up 210 bps); CET1 13.4%; returned ~78% of earnings via dividends plus 8M share buybacks; total PCL $568M (down from $605M) with allowance coverage 79 bps, performing provision $48M and impaired provision $520M (impaired loss rate 35 bps, gross impaired loan ratio 64 bps); liquidity LCR 133%; NII ex‑trading +13% with all‑bank NIM ex‑trading +17 bps YoY (+6 bps QoQ), Canadian P&C NIM 300 bps (+10 bps QoQ) and U.S. NIM 401 bps (+17 bps QoQ); non‑interest income $4.1B (up 18%); and segment highlights including Canadian P&B revenues +13% and NIM +34 bps YoY, Canadian Commercial loan and deposit volumes +7%/+8%, Wealth AUA/AUM +14%/+15%, U.S. net income +19%, and Capital Markets revenue +28% (net income +42%).Canadian Bank of Commerce Financial Statement Overview
Summary
Income Statement
76
Positive
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 53.08B | 62.01B | 23.61B | 21.31B | 20.78B | 19.86B |
| Gross Profit | 27.75B | 26.67B | 23.52B | 21.29B | 20.80B | 19.80B |
| EBITDA | 12.73B | 12.12B | 10.34B | 8.05B | 8.73B | 9.01B |
| Net Income | 9.36B | 8.43B | 7.12B | 5.00B | 6.22B | 6.43B |
Balance Sheet | ||||||
| Total Assets | 1.13T | 1.12T | 1.04T | 975.72B | 943.60B | 837.68B |
| Cash, Cash Equivalents and Short-Term Investments | 11.00B | 92.81B | 93.25B | 80.52B | 92.72B | 88.15B |
| Total Debt | 174.05B | 355.82B | 208.49B | 194.50B | 187.45B | 164.17B |
| Total Liabilities | 1.07T | 1.05T | 982.98B | 922.51B | 893.22B | 791.85B |
| Stockholders Equity | 65.32B | 64.13B | 58.73B | 52.98B | 50.18B | 45.65B |
Cash Flow | ||||||
| Free Cash Flow | -916.00M | 12.73B | 10.00B | 11.14B | 21.61B | -4.17B |
| Operating Cash Flow | 246.00M | 13.84B | 11.09B | 12.15B | 22.71B | -3.33B |
| Investing Cash Flow | -11.21B | -5.78B | -20.75B | -20.76B | -24.39B | -3.51B |
| Financing Cash Flow | 10.68B | -4.31B | -2.61B | -2.16B | -1.61B | -1.95B |
Canadian Bank of Commerce Technical Analysis
Negative
127.87
Price Trends
130.92
Negative
126.40
Positive
114.37
Positive
Market Momentum
-0.45
Positive
43.47
Neutral
34.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CM, the sentiment is Negative. The current price of 127.87 is below the 20-day moving average (MA) of 132.59, below the 50-day MA of 130.92, and above the 200-day MA of 114.37, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 43.47 is Neutral, neither overbought nor oversold. The STOCH value of 34.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CM.
Canadian Bank of Commerce Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$118.49B | 9.41 | 14.75% | 3.07% | -3.13% | 18.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$306.96B | 13.71 | 15.37% | 2.58% | 2.13% | 25.16% | |
66 Neutral | C$67.88B | 12.62 | 12.83% | 2.64% | 7.50% | -5.28% | |
64 Neutral | C$215.44B | 13.22 | 17.26% | 3.34% | 3.07% | 144.41% | |
62 Neutral | C$115.71B | 14.70 | 10.41% | 4.32% | -3.65% | -1.73% | |
60 Neutral | C$129.48B | 13.18 | 10.47% | 3.61% | -1.30% | 20.41% |
* Financial Sector Average
TSE:CM
Canadian Bank of Commerce
127.87
49.74
63.67%
TSE:BMO
Bank Of Montreal
183.35
51.41
38.96%
TSE:BNS
Bank Of Nova Scotia
93.88
29.19
45.12%
TSE:RY
Royal Bank Of Canada
219.79
62.81
40.02%
TSE:TD
Toronto Dominion Bank
127.52
44.76
54.09%
TSE:NA
National Bank of Canada
175.28
60.07
52.14%
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.