Canadian Bank of Commerce (CM) AI Stock Analysis

• Market Cap: C$120.27B
• Dividend Yield: 3.07%
• Average Volume (3M): 2.76M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 0.63
• Revenue Growth: -3.13%
• EPS Growth: 18.22%
• Country: CA
• Employees: 48,698
• Sector: N/A
• Sector Strength: N/A
• Industry: Banks - Diversified
• EPS (TTM): 2.21
• Shares Outstanding: 926,610,600
• 10 Day Avg. Volume: 2,140,675
• 30 Day Avg. Volume: 2,759,197
• PEG Ratio: 0.71
• Price to Book (P/B): 1.70
• Price to Sales (P/S): 1.75
• P/FCF Ratio: 8.54
• 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: C$129.22
• Price Target Upside: 2.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$140.00 ▲(10.85% Upside)

The score is primarily supported by solid financial performance with strong revenue growth and healthy ROE, but capped by high leverage and weaker cash-flow conversion. Technicals are a positive contributor given the sustained uptrend and moderate momentum signals. Valuation is supportive with a reasonable P/E and a mid-single-digit dividend yield.

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 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 Money

The Canadian Bank of Commerce generates revenue primarily through interest income, which is earned from loans and mortgages extended to customers. This includes personal loans, business loans, and home equity lines of credit. Additionally, the bank earns fees from account services, transaction processing, and asset management services. Investment income from its holdings in securities and other financial instruments also contributes significantly to its earnings. Furthermore, partnerships with financial technology firms and collaborations with other financial entities enhance its service offerings and customer reach, thereby driving additional revenue streams. The bank’s strong presence in both retail and commercial banking sectors allows it to capitalize on a diverse customer base, further solidifying its financial performance.

Canadian Bank of Commerce Financial Statement Overview

Summary

Income statement strength (score 75) is driven by strong revenue growth and solid EBIT/EBITDA margins, but profitability has weakened with declining gross and net margins. Balance sheet risk (score 65) is elevated due to high leverage (debt-to-equity 5.55) despite healthy ROE (13.14%). Cash flow quality (score 60) is mixed with weak operating cash flow conversion and declining free cash flow growth, partially offset by strong free cash flow relative to net income.

Income Statement

The Canadian Bank of Commerce has shown a strong revenue growth rate of 42.12% in the most recent year, indicating robust top-line expansion. However, the gross profit margin has decreased significantly from previous years, suggesting increased costs or pricing pressures. The net profit margin has also declined, reflecting reduced profitability. Despite these challenges, the bank maintains a solid EBIT and EBITDA margin, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 5.55, indicating significant leverage which could pose financial risks. However, the return on equity remains healthy at 13.14%, demonstrating effective use of equity capital. The equity ratio is relatively low, suggesting a heavy reliance on debt financing, which could impact financial stability.

Cash Flow

The cash flow statement shows a decline in free cash flow growth, which is a concern for future liquidity. The operating cash flow to net income ratio is low, indicating potential challenges in converting income into cash. However, the free cash flow to net income ratio is strong, suggesting efficient cash generation relative to net income.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Canadian Bank of Commerce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 126.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 126.3 is below the 20-day moving average (MA) of 127.45, above the 50-day MA of 125.61, and above the 200-day MA of 107.27, indicating a bullish trend. The MACD of 1.02 indicates Negative momentum. The RSI at 58.45 is Neutral, neither overbought nor oversold. The STOCH value of 80.76 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	―	―	―	―	―	―
BNS	77 Outperform	C$126.23B	17.49	9.19%	4.32%	-3.65%	-1.73%
NA	76 Outperform	C$65.09B	16.40	13.53%	2.64%	7.50%	-5.28%
RY	73 Outperform	C$325.37B	16.48	15.28%	2.58%	2.13%	25.16%
CM	71 Outperform	C$120.27B	15.05	13.69%	3.07%	-3.13%	18.22%
TD	70 Outperform	C$220.26B	11.27	16.78%	3.34%	3.07%	144.41%
BMO	66 Neutral	C$136.44B	16.79	10.10%	3.61%	-1.30%	20.41%