Comerica Incorporated
Comerica Incorporated Fundamental Analysis
Comerica Incorporated (CMA) shows weak financial fundamentals with a PE ratio of 16.19, profit margin of 15.07%, and ROE of 9.96%. The company generates $4.7B in annual revenue with weak year-over-year growth of -4.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 35.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CMA's fundamental strength across five key dimensions:
Efficiency Score
WeakCMA struggles to generate sufficient returns from assets.
Valuation Score
ModerateCMA shows balanced valuation metrics.
Growth Score
WeakCMA faces weak or negative growth trends.
Financial Health Score
ModerateCMA shows balanced financial health with some risks.
Profitability Score
ModerateCMA maintains healthy but balanced margins.
Key Financial Metrics
Is CMA Expensive or Cheap?
P/E Ratio
CMA trades at 16.19 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CMA's PEG of 17.06 indicates potential overvaluation.
Price to Book
The market values Comerica Incorporated at 1.52 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.87 times EBITDA. This is generally considered low.
How Well Does CMA Make Money?
Net Profit Margin
For every $100 in sales, Comerica Incorporated keeps $15.07 as profit after all expenses.
Operating Margin
Core operations generate 19.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $9.96 in profit for every $100 of shareholder equity.
ROA
Comerica Incorporated generates $0.90 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Comerica Incorporated generates limited operating cash flow of $464.41M, signaling weaker underlying cash strength.
Free Cash Flow
Comerica Incorporated produces free cash flow of $400.42M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $3.13 in free cash annually.
FCF Yield
CMA converts 3.64% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
17.06
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.52
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.70
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.009
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How CMA Stacks Against Its Sector Peers
| Metric | CMA Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.19 | 18.73 | Better (Cheaper) |
| ROE | 9.96% | 847.00% | Weak |
| Net Margin | 15.07% | 2562.00% | Weak |
| Debt/Equity | 0.70 | 0.93 | Strong (Low Leverage) |
| Current Ratio | 0.28 | 674.76 | Weak Liquidity |
| ROA | 0.90% | -21692.00% (disorted) | Weak |
CMA outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Comerica Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.76%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-34.51%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
-37.81%
Industry Style: Value, Dividend, Cyclical
Declining