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Canadian Imperial Bank Of Commerce (TSE:CM)
TSX:CM
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Canadian Bank of Commerce
(TSX:CM)
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Rating:71Outperform
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 (CM) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$117.65B
Dividend Yield3.07%
Average Volume (3M)2.76M
Price to Earnings (P/E)14.7
Beta (1Y)0.65
Revenue Growth-3.13%
EPS Growth18.22%
CountryCA
Employees48,698
SectorN/A
Sector StrengthN/A
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.21
Shares Outstanding926,610,600
10 Day Avg. Volume2,140,675
30 Day Avg. Volume2,759,197
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$129.22Price Target Upside2.31% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Canadian Bank of Commerce Business Overview & Revenue Model
Company DescriptionThe Canadian Bank of Commerce (CM) is a leading financial institution in Canada, providing a wide range of banking and financial services to individuals, businesses, and institutions. Established as a key player in the Canadian banking sector, CM operates across various sectors including retail banking, commercial banking, and wealth management. Its core products and services encompass personal and business accounts, loans, mortgages, investment services, and financial advisory solutions, aimed at meeting the diverse needs of its clientele.
How the Company Makes MoneyThe 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 Earnings Call Summary
Earnings Call Date:Aug 28, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 26, 2026
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
Income Statement
75
Positive
Balance Sheet
65
Positive
Cash Flow
60
Neutral
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Canadian Bank of Commerce Technical Analysis
Positive
126.30
Price Trends
122.66
Positive
116.03
Positive
103.34
Positive
Market Momentum
1.24
Positive
58.40
Neutral
63.11
Neutral
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 126.31, above the 50-day MA of 122.66, and above the 200-day MA of 103.34, indicating a bullish trend. The MACD of 1.24 indicates Positive momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 63.11 is Neutral, 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
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
77 Outperform | C$125.27B | 17.36 | 9.19% | 4.32% | -3.65% | -1.73% | |
76 Outperform | C$66.35B | 16.72 | 13.53% | 2.64% | 7.50% | -5.28% | |
73 Outperform | C$327.76B | 16.60 | 15.28% | 2.58% | 2.13% | 25.16% | |
71 Outperform | C$117.65B | 14.73 | 13.69% | 3.07% | -3.13% | 18.22% | |
70 Outperform | C$219.94B | 11.25 | 16.78% | 3.34% | 3.07% | 144.41% | |
66 Neutral | C$131.21B | 16.15 | 10.10% | 3.61% | -1.30% | 20.41% |
* Sector Average
TSE:CM
Canadian Bank of Commerce
127.99
41.15
47.39%
TSE:BMO
Bank Of Montreal
187.44
50.60
36.97%
TSE:BNS
Bank Of Nova Scotia
102.18
31.61
44.80%
TSE:RY
Royal Bank Of Canada
235.34
68.17
40.78%
TSE:TD
Toronto Dominion Bank
130.71
54.32
71.10%
TSE:NA
National Bank of Canada
169.95
42.85
33.71%
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.