Comerica (CMA) AI Stock Analysis

• Market Cap: $7.73B
• Dividend Yield: 4.83%
• Average Volume (3M): 1.92M
• Price to Earnings (P/E): 11.1
• Beta (1Y): 1.34
• Revenue Growth: -9.81%
• EPS Growth: 5.22%
• Country: US
• Employees: 7,860
• Sector: Financial
• Sector Strength: 85
• Industry: Banks - Regional
• EPS (TTM): 1.25
• Shares Outstanding: 131,412,830
• 10 Day Avg. Volume: 1,214,860
• 30 Day Avg. Volume: 1,917,561
• PEG Ratio: 1.88
• Price to Book (P/B): 1.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.49
• 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: $60.93
• Price Target Upside: 3.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

Comerica's strong financial performance and attractive valuation are key strengths, supported by solid cash flow and a stable balance sheet. Technical indicators suggest caution due to potential bearish trends, and earnings call insights reveal resilience despite economic challenges. The positive corporate event further supports a favorable outlook. Overall, CMA is well-positioned, but investors should remain vigilant of market conditions.

Positive Factors

Deposit Costs

Deposit trends are coming in better than expected, with interest-bearing deposit costs declining.

Financial Performance

1Q25 EPS of $1.25 beat MS/Consensus estimates driven by lower expenses and higher NII.

Negative Factors

Loan Growth

The tougher macro environment drives down forward loan growth and NII guides closer to below consensus estimates.

Revenue Pressures

CMA is not immune to revenue pressures ahead, including a further pullback in loan demand and weaker customer-related fee trends.

Stock Valuation

CMA shares trade at a 20% premium compared to the coverage universe median, making them appear expensive.

Comerica Business Overview & Revenue Model

Company Description

Comerica Incorporated, through its subsidiaries, provides various financial products and services. It operates through Commercial Bank, Retail Bank, Wealth Management, and Finance segments. The Commercial Bank segment offers various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services, and loan syndication services for small and middle market businesses, multinational corporations, and governmental entities. The Retail Bank segment provides personal financial services, such as consumer lending, consumer deposit gathering, and mortgage loan origination. This segment also offers various consumer products that include deposit accounts, installment loans, credit cards, student loans, home equity lines of credit, and residential mortgage loans, as well as commercial products and services to micro-businesses. The Wealth Management segment provides products and services comprising fiduciary, private banking, retirement, investment management and advisory, and investment banking and brokerage services. This segment also sells annuity products, as well as life, disability, and long-term care insurance products. The Finance segment engages in the securities portfolio, and asset and liability management activities. It operates in Texas, California, Michigan, Arizona, Florida, Canada, and Mexico. The company was formerly known as DETROITBANK Corporation and changed its name to Comerica Incorporated in July 1982. Comerica Incorporated was founded in 1849 and is headquartered in Dallas, Texas.

How the Company Makes Money

Comerica makes money primarily through its interest income and non-interest income streams. The company earns interest income by extending loans to businesses and individuals, which include commercial loans, real estate loans, and consumer loans. A significant portion of its revenue is derived from the interest spread, which is the difference between the interest it charges on loans and the interest it pays on deposits. Additionally, Comerica generates non-interest income through fees and service charges, including wealth management fees, card fees, and treasury management services. The company also benefits from its strategic partnerships and investments in technology to enhance its service offerings and improve operational efficiency, thereby supporting its revenue growth.

Comerica Financial Statement Overview

Summary

Comerica exhibits strong financial health with consistent revenue growth and solid cash flow generation. While profitability margins are mixed, the company's balance sheet remains stable with low leverage. Overall, CMA is well-positioned with reasonable growth prospects and financial stability, though monitoring operational efficiency improvements is recommended.

Income Statement

CMA demonstrates a stable revenue growth trajectory with a notable increase in total revenue in the TTM period. Gross profit margin remains high, reflecting efficient cost management. However, there was a decline in EBIT and EBITDA margins, indicating potential operational efficiency issues. The net profit margin improved, showcasing effective cost control and profitability enhancement.

Balance Sheet

The balance sheet reveals a prudent financial structure with a low debt-to-equity ratio, indicating conservative leverage. The equity ratio is moderate, suggesting adequate capitalization. Return on equity has improved, reflecting enhanced shareholder value. However, the decrease in total assets and stockholders' equity warrants attention.

Cash Flow

CMA's cash flow statement shows robust operating cash flow relative to net income, indicating strong cash generation efficiency. Free cash flow growth rate is impressive, contributing to financial flexibility. The free cash flow to net income ratio is favorable, underscoring the company's ability to convert earnings into cash.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.75B	3.24B	3.59B	3.53B	2.97B	2.91B
	Gross Profit
3.48B	3.24B	5.29B	3.53B	2.97B	2.91B
	EBIT
113.00M	909.00M	1.35B	1.68B	1.49B	591.00M
	EBITDA
483.00M	0.00	1.23B	1.57B	1.59B	729.00M
	Net Income Common Stockholders
732.00M	698.00M	881.00M	1.15B	1.17B	497.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
16.18B	15.89B	9.50B	25.45B	39.86B	30.97B
	Total Assets
77.62B	79.30B	85.83B	85.41B	94.62B	88.13B
	Total Debt
6.96B	6.67B	9.77B	6.24B	2.80B	5.73B
	Net Debt
1.17B	-131.00M	269.00M	-47.00M	-19.88B	-10.04B
	Total Liabilities
70.57B	72.75B	79.43B	80.22B	86.72B	5.73B
	Stockholders Equity
7.05B	6.54B	6.41B	5.18B	7.90B	8.05B
Cash Flow		Free Cash Flow
959.00M	448.00M	1.10B	556.00M	564.00M	849.00M
	Operating Cash Flow
1.08B	601.00M	1.25B	638.00M	634.00M	928.00M
	Investing Cash Flow
2.44B	3.26B	3.49B	-9.95B	1.72B	-4.60B
	Financing Cash Flow
-2.86B	-6.56B	-1.52B	-7.08B	4.55B	13.62B

Comerica Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 58.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMA, the sentiment is Positive. The current price of 58.79 is above the 20-day moving average (MA) of 55.14, above the 50-day MA of 55.75, and below the 200-day MA of 59.70, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMA.

Comerica Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CFR	80 Outperform	$8.43B	14.40	15.26%	2.87%	5.99%	7.75%
PNFP	78 Outperform	$8.64B	18.00	7.77%	0.81%	8.09%	-11.31%
WTFC	75 Outperform	$8.19B	12.09	11.58%	1.51%	6.79%	4.65%
CMA	75 Outperform	$7.73B	11.14	11.11%	4.83%	-9.81%	5.22%
WBS	73 Outperform	$8.90B	11.91	8.59%	3.02%	2.60%	-9.07%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
WAL	59 Neutral	$8.63B	10.74	12.36%	1.92%	11.01%	6.63%

Comerica Corporate Events

Comerica Shareholders Approve Key Decisions at Annual Meeting

Comerica Incorporated held its 2025 Annual Meeting of Shareholders on April 29, 2025, where it was decided to reduce the Board size to eleven directors following the end of Nancy Avila’s term. During the meeting, shareholders voted on several matters, including the election of eleven directors, the ratification of Ernst & Young LLP as the independent accounting firm for 2025, and the approval of executive compensation, all of which were approved.

Spark’s Take on CMA Stock

According to Spark, TipRanks’ AI Analyst, CMA is a Neutral.

Comerica’s stock score reflects a solid financial foundation with strong revenue growth and reduced debt. However, recent declines in income and cash flow, alongside bearish technical indicators, pose challenges. Attractive valuation and stable earnings performance provide some balance, but muted loan demand and economic uncertainties remain concerns.

To see Spark’s full report on CMA stock, click here.

Comerica Executives to Present at 2025 RBC Conference

Comerica announced that its executives will present at the 2025 RBC Capital Markets Financial Institutions Conference on March 5, 2025. The presentation will highlight Comerica’s strategic revenue investments aimed at sustainable growth, including enhancing customer loan and deposit trends, and expanding its market presence through targeted initiatives. These efforts are expected to improve revenue growth and returns, positioning Comerica well for future opportunities.