COMERICA INC (CMA) Stock Fundamental Analysis
NYSE:CMA - New York Stock Exchange, Inc. - US2003401070 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to CMA. CMA was compared to 405 industry peers in the Banks industry. CMA has a bad profitability rating. Also its financial health evaluation is rather negative. CMA is valued correctly, but it does not seem to be growing. Finally CMA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year CMA was profitable.
CMA had a positive operating cash flow in the past year.
Each year in the past 5 years CMA has been profitable.
Of the past 5 years CMA 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.67%, CMA is doing worse than 60.40% of the companies in the same industry.
With a Return On Equity value of 7.26%, CMA perfoms like the industry average, outperforming 41.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 7.26% | ||
| ROIC | N/A |
ROA(3y)1.05%
ROA(5y)0.98%
ROE(3y)15.08%
ROE(5y)13.13%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Profit Margin value of 16.71%, CMA is not doing good in the industry: 71.68% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of CMA has declined.
CMA does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 16.71% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-18.65%
PM growth 5Y-10.33%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
CMA does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, CMA has less shares outstanding
CMA has less shares outstanding than it did 5 years ago.
CMA has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of CMA is 1.46, which is an excellent value as it means it would take CMA, only 1.46 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.46, CMA is doing good in the industry, outperforming 68.92% of the companies in the same industry.
CMA has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
CMA has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: CMA underperforms 71.18% of its industry peers.
Although CMA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.83%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for CMA have decreased strongly by -28.96% in the last year.
CMA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.99% yearly.
Looking at the last year, CMA shows a decrease in Revenue. The Revenue has decreased by -9.69% in the last year.
The Revenue has been decreasing by -0.64% on average over the past years.
EPS 1Y (TTM)-28.96%
EPS 3Y-13.01%
EPS 5Y-6.99%
EPS Q2Q%-6.85%
Revenue 1Y (TTM)-9.69%
Revenue growth 3Y3.02%
Revenue growth 5Y-0.64%
Sales Q2Q%6.78%
3.2 Future
The Earnings Per Share is expected to grow by 0.96% on average over the next years.
Based on estimates for the next years, CMA will show a small growth in Revenue. The Revenue will grow by 1.72% on average per year.
EPS Next Y-3.4%
EPS Next 2Y3.77%
EPS Next 3Y5.03%
EPS Next 5Y0.96%
Revenue Next Year4.41%
Revenue Next 2Y3.94%
Revenue Next 3Y3.56%
Revenue Next 5Y1.72%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.96, the valuation of CMA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of CMA indicates a somewhat cheap valuation: CMA is cheaper than 60.40% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. CMA is valued rather cheaply when compared to this.
CMA is valuated correctly with a Price/Forward Earnings ratio of 12.38.
The rest of the industry has a similar Price/Forward Earnings ratio as CMA.
CMA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 12.38 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CMA is valued cheaply inside the industry as 92.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.77%
EPS Next 3Y5.03%
5. Dividend
5.1 Amount
CMA has a Yearly Dividend Yield of 4.24%, which is a nice return.
Compared to an average industry Dividend Yield of 3.18, CMA pays a better dividend. On top of this CMA pays more dividend than 82.46% of the companies listed in the same industry.
CMA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
5.2 History
On average, the dividend of CMA grows each year by 13.67%, which is quite nice.
CMA has been paying a dividend for at least 10 years, so it has a reliable track record.
As CMA did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.67%
Div Incr Years1
Div Non Decr Years7
5.3 Sustainability
CMA pays out 74.39% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CMA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP74.39%
EPS Next 2Y3.77%
EPS Next 3Y5.03%
65.42
-1.59 (-2.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners82.22%
Inst Owner Change-4.99%
Ins Owners0.82%
Ins Owner Change2.54%
Market Cap8.60B
Analysts66.67
Price Target70.83 (8.27%)
Short Float %3.17%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.24% |
Yearly Dividend3
Dividend Growth(5Y)13.67%
DP74.39%
Div Incr Years1
Div Non Decr Years7
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.38%
Min EPS beat(2)13.07%
Max EPS beat(2)23.68%
EPS beat(4)4
Avg EPS beat(4)14.11%
Min EPS beat(4)5.87%
Max EPS beat(4)23.68%
EPS beat(8)8
Avg EPS beat(8)9.37%
EPS beat(12)11
Avg EPS beat(12)7.01%
EPS beat(16)15
Avg EPS beat(16)15.08%
Revenue beat(2)1
Avg Revenue beat(2)-0.39%
Min Revenue beat(2)-1.06%
Max Revenue beat(2)0.29%
Revenue beat(4)1
Avg Revenue beat(4)-3.07%
Min Revenue beat(4)-7.76%
Max Revenue beat(4)0.29%
Revenue beat(8)5
Avg Revenue beat(8)-1.06%
Revenue beat(12)8
Avg Revenue beat(12)-0.74%
Revenue beat(16)11
Avg Revenue beat(16)-0.2%
PT rev (1m)-2.46%
PT rev (3m)2.19%
EPS NQ rev (1m)1.87%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)-4.62%
EPS NY rev (3m)-4.55%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)-0.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.96 | ||
| Fwd PE | 12.38 | ||
| P/S | 2.69 | ||
| P/FCF | 4.53 | ||
| P/OCF | 4.14 | ||
| P/B | 1.17 | ||
| P/tB | 1.17 | ||
| EV/EBITDA | N/A |
EPS(TTM)5.47
EY8.36%
EPS(NY)5.28
Fwd EY8.08%
FCF(TTM)14.45
FCFY22.09%
OCF(TTM)15.81
OCFY24.16%
SpS24.36
BVpS56.05
TBVpS56.05
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 7.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 16.71% | ||
| GM | N/A | ||
| FCFM | 59.33% |
ROA(3y)1.05%
ROA(5y)0.98%
ROE(3y)15.08%
ROE(5y)13.13%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-18.65%
PM growth 5Y-10.33%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 191.4% | ||
| Cap/Sales | 5.56% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 354.95% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC11.83%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.96%
EPS 3Y-13.01%
EPS 5Y-6.99%
EPS Q2Q%-6.85%
EPS Next Y-3.4%
EPS Next 2Y3.77%
EPS Next 3Y5.03%
EPS Next 5Y0.96%
Revenue 1Y (TTM)-9.69%
Revenue growth 3Y3.02%
Revenue growth 5Y-0.64%
Sales Q2Q%6.78%
Revenue Next Year4.41%
Revenue Next 2Y3.94%
Revenue Next 3Y3.56%
Revenue Next 5Y1.72%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y211.82%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y186.09%
OCF growth 3YN/A
OCF growth 5YN/A