CAN IMPERIAL BK OF COMMERCE (CM.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CM - CA1360691010 - Common Stock
127.04 CAD
-0.4 (-0.31%)
Overall CM gets a fundamental rating of 3 out of 10. We evaluated CM against 24 industry peers in the Banks industry. While CM is still in line with the averages on profitability rating, there are concerns on its financial health. CM is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year CM was profitable.
- In the past year CM had a positive cash flow from operations.
- In the past 5 years CM has always been profitable.
- Of the past 5 years CM 4 years had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 0.72%, CM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.58%, CM is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.72% | ||
| ROE | 12.58% | ||
| ROIC | N/A |
ROA(3y)0.62%
ROA(5y)0.65%
ROE(3y)11.06%
ROE(5y)11.8%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- CM has a Profit Margin of 27.68%. This is in the better half of the industry: CM outperforms 70.83% of its industry peers.
- CM's Profit Margin has improved in the last couple of years.
- The Operating Margin and Gross Margin are not available for CM so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 27.68% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-0.03%
PM growth 5Y7.18%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
- CM does not have a ROIC to compare to the WACC, probably because it is not profitable.
- The number of shares outstanding for CM has been reduced compared to 1 year ago.
- The number of shares outstanding for CM has been increased compared to 5 years ago.
- The debt/assets ratio for CM is higher compared to a year ago.
2.2 Solvency
- CM has a debt to FCF ratio of 13.21. This is a negative value and a sign of low solvency as CM would need 13.21 years to pay back of all of its debts.
- CM has a better Debt to FCF ratio (13.21) than 75.00% of its industry peers.
- A Debt/Equity ratio of 2.62 is on the high side and indicates that CM has dependencies on debt financing.
- Looking at the Debt to Equity ratio, with a value of 2.62, CM is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.62 | ||
| Debt/FCF | 13.21 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.86%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.49% over the past year.
- Measured over the past years, CM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.24% on average per year.
- Looking at the last year, CM shows a quite strong growth in Revenue. The Revenue has grown by 13.77% in the last year.
- The Revenue has been growing by 9.22% on average over the past years. This is quite good.
EPS 1Y (TTM)16.49%
EPS 3Y6.93%
EPS 5Y12.24%
EPS Q2Q%15.71%
Revenue 1Y (TTM)13.77%
Revenue growth 3Y10.09%
Revenue growth 5Y9.22%
Sales Q2Q%14.49%
3.2 Future
- The Earnings Per Share is expected to decrease by -0.01% on average over the next years.
- Based on estimates for the next years, CM will show a small growth in Revenue. The Revenue will grow by 3.48% on average per year.
EPS Next Y13.71%
EPS Next 2Y11.95%
EPS Next 3Y10.64%
EPS Next 5Y-0.01%
Revenue Next Year6.44%
Revenue Next 2Y5.86%
Revenue Next 3Y4.79%
Revenue Next 5Y3.48%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 14.74 indicates a correct valuation of CM.
- 79.17% of the companies in the same industry are cheaper than CM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of CM to the average of the S&P500 Index (27.21), we can say CM is valued slightly cheaper.
- CM is valuated correctly with a Price/Forward Earnings ratio of 12.96.
- Based on the Price/Forward Earnings ratio, CM is valued a bit more expensive than the industry average as 79.17% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, CM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.74 | ||
| Fwd PE | 12.96 |
4.2 Price Multiples
- CM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.27 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.07
PEG (5Y)1.2
EPS Next 2Y11.95%
EPS Next 3Y10.64%
5. Dividend
5.1 Amount
- CM has a Yearly Dividend Yield of 3.12%. Purely for dividend investing, there may be better candidates out there.
- CM's Dividend Yield is comparable with the industry average which is at 3.05.
- CM's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.12% |
5.2 History
- The dividend of CM is nicely growing with an annual growth rate of 8.20%!
- CM has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of CM decreased recently.
Dividend Growth(5Y)8.2%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CM pays out 49.51% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP49.51%
EPS Next 2Y11.95%
EPS Next 3Y10.64%
CAN IMPERIAL BK OF COMMERCE / CM.CA FAQ
What is the fundamental rating for CM stock?
ChartMill assigns a fundamental rating of 3 / 10 to CM.CA.
What is the valuation status of CAN IMPERIAL BK OF COMMERCE (CM.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to CAN IMPERIAL BK OF COMMERCE (CM.CA). This can be considered as Overvalued.
What is the profitability of CM stock?
CAN IMPERIAL BK OF COMMERCE (CM.CA) has a profitability rating of 4 / 10.
Can you provide the expected EPS growth for CM stock?
The Earnings per Share (EPS) of CAN IMPERIAL BK OF COMMERCE (CM.CA) is expected to grow by 13.71% in the next year.
How sustainable is the dividend of CAN IMPERIAL BK OF COMMERCE (CM.CA) stock?
The dividend rating of CAN IMPERIAL BK OF COMMERCE (CM.CA) is 5 / 10 and the dividend payout ratio is 49.51%.