CAN IMPERIAL BK OF COMMERCE (CM)
CA1360691010 - Common Stock
We assign a fundamental rating of 4 out of 10 to CM. CM was compared to 412 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 has a valuation in line with the averages, but it does not seem to be growing. Finally CM also has an excellent dividend rating.
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.
CM had positive earnings in each of the past 5 years.
CM had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CM's Return On Assets of 0.62% is on the low side compared to the rest of the industry. CM is outperformed by 71.60% of its industry peers.
With a decent Return On Equity value of 11.14%, CM is doing good in the industry, outperforming 72.09% of the companies in the same industry.
The Return On Invested Capital of CM (0.54%) is better than 99.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 11.14% | ||
| ROIC | 0.54% |
ROA(3y)0.62%
ROA(5y)0.62%
ROE(3y)11.57%
ROE(5y)11.32%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CM has a Profit Margin (25.52%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of CM has declined.
CM has a better Operating Margin (29.49%) than 99.51% of its industry peers.
The Gross Margin of CM (90.24%) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.49% | ||
| PM (TTM) | 25.52% | ||
| GM | 90.24% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y1.18%
PM growth 5Y-6.93%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CM is destroying value.
The number of shares outstanding for CM has been increased compared to 1 year ago.
The number of shares outstanding for CM has been increased compared to 5 years ago.
CM has a worse debt/assets ratio than last year.
2.2 Solvency
CM has a debt to FCF ratio of 17.30. This is a negative value and a sign of low solvency as CM would need 17.30 years to pay back of all of its debts.
CM's Debt to FCF ratio of 17.30 is on the low side compared to the rest of the industry. CM is outperformed by 83.50% of its industry peers.
A Debt/Equity ratio of 2.31 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 2.31, CM is doing worse than 92.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | 17.3 | ||
| Altman-Z | N/A |
ROIC/WACC0.03
WACC16.7%
2.3 Liquidity
A Current Ratio of 1.50 indicates that CM should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.50, CM belongs to the best of the industry, outperforming 99.27% of the companies in the same industry.
A Quick Ratio of 1.50 indicates that CM should not have too much problems paying its short term obligations.
CM has a better Quick ratio (1.50) than 99.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 |
3. Growth
3.1 Past
CM shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.04%.
Measured over the past 5 years, CM shows a small growth in Earnings Per Share. The EPS has been growing by 1.97% on average per year.
Looking at the last year, CM shows a small growth in Revenue. The Revenue has grown by 6.09% in the last year.
The Revenue has been growing slightly by 5.51% on average over the past years.
EPS 1Y (TTM)-5.04%
EPS 3Y11.62%
EPS 5Y1.97%
EPS growth Q2Q-6.7%
Revenue 1Y (TTM)6.09%
Revenue growth 3Y7.56%
Revenue growth 5Y5.51%
Revenue growth Q2Q4.96%
3.2 Future
Based on estimates for the next years, CM will show a small growth in Earnings Per Share. The EPS will grow by 3.65% on average per year.
Based on estimates for the next years, CM will show a small growth in Revenue. The Revenue will grow by 1.70% on average per year.
EPS Next Y2.92%
EPS Next 2Y3.55%
EPS Next 3Y3.65%
EPS Next 5YN/A
Revenue Next Year5.11%
Revenue Next 2Y4.28%
Revenue Next 3Y4.2%
Revenue Next 5Y1.7%
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 accelerating.
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 10.02 indicates a reasonable valuation of CM.
CM's Price/Earnings is on the same level as the industry average.
CM is valuated cheaply when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
CM is valuated reasonably with a Price/Forward Earnings ratio of 9.16.
Based on the Price/Forward Earnings ratio, CM is valued a bit cheaper than 71.60% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CM to the average of the S&P500 Index (20.58), we can say CM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.16 |
4.2 Price Multiples
99.27% of the companies in the same industry are more expensive than CM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CM is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.56 | ||
| EV/EBITDA | 8.53 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CM does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)3.43
PEG (5Y)5.09
EPS Next 2Y3.55%
EPS Next 3Y3.65%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.47%, CM is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, CM pays a better dividend. On top of this CM pays more dividend than 87.14% of the companies listed in the same industry.
CM's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
5.2 History
The dividend of CM has a limited annual growth rate of 0.59%.
CM has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)0.59%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CM pays out 37.97% of its income as dividend. This is a sustainable payout ratio.
The dividend of CM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP37.97%
EPS Next 2Y3.55%
EPS Next 3Y3.65%
CAN IMPERIAL BK OF COMMERCE
NYSE:CM (5/6/2024, 7:04:00 PM)
After market: 48.38 0 (0%)48.38
+0.5 (+1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap45.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.02 | ||
| Fwd PE | 9.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.43
PEG (5Y)5.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 11.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.49% | ||
| PM (TTM) | 25.52% | ||
| GM | 90.24% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.5 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-5.04%
EPS 3Y11.62%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.09%
Revenue growth 3Y7.56%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y