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Canadian Imperial Bank Of Commerce (TSE:CM)
TSX:CM
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Canadian Bank of Commerce
(TSX:CM)
79Outperform
Positive Factors
Capital Markets
The optimistic outlook for the Capital Markets segment includes a promising deal pipeline, suggesting continued strong performance.
Capital Position
Strong capital levels support continued share buybacks, with a CET1 ratio of 13.5%.
Earnings
Operating EPS beat consensus expectations by approximately 10% to 12%, driven by record trading in Capital Markets and better revenue across other segments.
Efficiency
Efficiency ratio of 53.1% was better than expected, indicating effective cost management.
Wealth Management
Strong fee-based revenues from Wealth and Capital Markets are expected to help CM reach its 7-10% EPS growth expectation for the year.
Negative Factors
Tariff Uncertainty
The target price for the stock was slightly lowered due to tariff uncertainty, despite consistent execution and delivery at the bank.
Canadian Bank of Commerce (CM) vs. S&P 500 (SPY)
Market Cap
$81.74B
Dividend Yield4.25%
Average Volume (3M)5.21M
Price to Earnings (P/E)11.3
Beta (1Y)0.86
Revenue Growth10.79%
EPS Growth18.20%
CountryCA
Employees48,698
SectorFinancial
Sector Strength88
IndustryBanks - Diversified
Share Statistics
EPS (TTM)7.73
Shares Outstanding940,047,550
10 Day Avg. Volume3,877,456
30 Day Avg. Volume5,209,185
Financial Highlights & Ratios
PEG Ratio0.62
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$95.81Price Target Upside10.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
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 MoneyCIBC makes money through a diverse range of revenue streams, primarily generated from interest income, non-interest income, and capital markets activities. Interest income is derived from loans and mortgages offered to personal and business clients, where the bank earns interest on the amounts borrowed. Non-interest income includes fees from banking services, investment management, and advisory services in wealth management. Additionally, CIBC generates revenue from its capital markets operations, including trading activities, underwriting services, and corporate finance advisory. Strategic partnerships and collaborations also play a role in enhancing CIBC's service offerings and expanding its market reach, contributing to overall earnings.
Canadian Bank of Commerce Financial Statement Overview
Summary
The Canadian Bank of Commerce exhibits strong revenue growth and profitability with a high income statement score of 85. The balance sheet is solid with a score of 75, though leverage could be improved. Cash flow is strong but shows some volatility, with a score of 78.Income Statement
The Canadian Bank of Commerce demonstrates strong revenue growth, with a TTM revenue increase of 4.1% compared to the previous year. The gross profit margin and net profit margin are robust at 100% and 28.5%, respectively, reflecting efficient cost management. However, there's a notable decline in EBIT margin from the previous periods, suggesting rising operational costs.85
Very Positive
Balance Sheet
The bank maintains a healthy equity position with a debt-to-equity ratio of 3.55, indicating a moderate level of leverage. The equity ratio is at 5.67%, which is typical for the banking industry but could be improved. The return on equity shows a solid performance at 12.33%, indicating effective use of shareholder funds.75
Positive
Cash Flow
Operating cash flow is strong, with a TTM figure significantly higher than net income, yielding a high operating cash flow to net income ratio of 3.87. The free cash flow has shown significant growth of 182.2% over the previous year, although fluctuations in free cash flow over the years indicate potential volatility in cash generation capabilities.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 25.53B | 21.31B | 21.76B | 19.96B | 18.67B | Gross Profit |
| 25.53B | 23.29B | 21.76B | 19.96B | 18.67B | EBIT |
| 11.19B | 9.56B | 17.49B | 8.30B | 4.89B | EBITDA |
| 12.36B | 8.05B | 8.97B | 9.28B | 5.80B | Net Income Common Stockholders |
| 7.12B | 5.00B | 6.22B | 6.43B | 3.79B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 93.25B | 80.52B | 92.72B | 88.15B | 117.07B | Total Assets |
| 1.04T | 975.72B | 943.60B | 837.68B | 769.55B | Total Debt |
| 208.49B | 194.50B | 187.45B | 164.17B | 45.86B | Net Debt |
| 152.46B | 131.33B | 114.13B | 94.90B | -16.66B | Total Liabilities |
| 982.98B | 922.51B | 893.22B | 791.85B | 728.22B | Stockholders Equity |
| 58.73B | 52.98B | 50.18B | 45.65B | 41.15B |
| Cash Flow | Free Cash Flow | |||
| 10.00B | 11.14B | 21.61B | -4.17B | 59.99B | Operating Cash Flow |
| 11.09B | 12.15B | 22.71B | -3.33B | 60.30B | Investing Cash Flow |
| -20.75B | -20.76B | -24.39B | -3.51B | -19.41B | Financing Cash Flow |
| -2.61B | -2.16B | -1.61B | -1.95B | -1.22B |
Canadian Bank of Commerce Technical Analysis
Positive
86.95
Price Trends
82.15
Positive
85.91
Positive
82.30
Positive
Market Momentum
1.12
Negative
68.56
Neutral
96.30
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 86.95 is above the 20-day moving average (MA) of 82.06, above the 50-day MA of 82.15, and above the 200-day MA of 82.30, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 68.56 is Neutral, neither overbought nor oversold. The STOCH value of 96.30 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 (63)
Financial Indicators
Performance Comparison
TSE:CM
Canadian Bank of Commerce
87.32
25.58
41.44%
BMO
Bank Of Montreal
96.32
10.64
12.42%
BNS
Bank Of Nova Scotia
49.83
6.28
14.42%
RY
Royal Bank Of Canada
120.02
24.22
25.28%
TD
Toronto Dominion Bank
63.14
7.99
14.49%
NTIOF
National Bank of Canada
87.50
8.14
10.26%
Canadian Bank of Commerce Earnings Call Summary
Earnings Call Date:Feb 27, 2025
(Q1-2025)
| % Change Since: 1.40%|
Next Earnings Date:May 29, 2025
Earnings Call Sentiment Positive
CIBC reported record-breaking revenue and growth across all business units, with strong capital and liquidity positions and positive operating leverage. However, the bank faces challenges due to economic and trade uncertainties, elevated expense growth, and increased provisions for credit losses.Q1-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
CIBC reported revenues of $7.3 billion, up 17% from the prior year, with record top-line results across all business units. Adjusted earnings per share were $2.20, up 22% from the prior year, and adjusted ROE was strong at 15.3%.
Strong Capital and Liquidity Position
CIBC grew its CET1 ratio to 13.5%, up from 13.3% last quarter, and repurchased 3.5 million common shares. The bank's liquidity coverage ratio remained robust at 132%.
Robust Performance Across Business Segments
Canadian Personal and Business Banking showed strong growth with mass affluent client base growing 4.5 times faster than the rest of the client base. North American Commercial Banking saw loans and deposits up 8% and 10% respectively in Canada.
Positive Operating Leverage and Efficiency
Achieved sixth consecutive quarter of positive operating leverage, with operating leverage at 190 basis points. Non-trading fee income was up 11% from the prior year.
Negative Updates
Economic and Trade Uncertainty
Trade tensions between Canada and the United States have led to disruptions in some sectors, creating economic and political volatility, and uncertainty about potential new or increased tariffs.
Elevated Expense Growth
Expense growth was elevated from the low prior year quarter, partly due to legal provisions and foreign exchange translation, with expenses linked to strong revenues and employee-related costs.
Increase in Provisions for Credit Losses
Total provisions for credit losses were $573 million in Q1, up from $419 million last quarter, with an increase in performing credit provisions due to growing macroeconomic risks.
Company Guidance
In the CIBC Q1 2025 conference call, the bank reported impressive financial metrics, indicating strong performance across its business units. The bank achieved revenues of $7.3 billion, a 17% increase from the previous year, with adjusted earnings per share reaching a record high of $2.20, up 22% year-over-year. The adjusted return on equity (ROE) stood at a robust 15.3%. CIBC also enhanced its capital position by repurchasing 3.5 million common shares and increasing its Common Equity Tier 1 (CET1) ratio to 13.5% from 13.3% the previous quarter. Non-trading fee income surged by 11%, while the bank's non-trading margins improved by 17 basis points. The bank maintained positive operating leverage for the sixth consecutive quarter and reported a total provision for credit losses of $573 million, reflecting a cautious approach amid macroeconomic uncertainties. CIBC's strategy continues to focus on growing its mass affluent and private wealth franchise, expanding digital banking capabilities, and enhancing connectivity with clients, contributing to its sustained strong performance and positioning for future growth.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.