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Canadian Imperial Bank of Commerce CM

Morningstar Rating
CAD 65.77 +1.55 (2.41%)
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Company Report

Canadian Imperial Bank of Commerce Earnings: Strong Fee Results but Higher Credit Costs as Well

Narrow-moat-rated Canadian Imperial Bank of Commerce, or CIBC, reported decent fiscal first-quarter earnings that were largely in line with our expectations, as solid fee results were offset by higher credit costs. Adjusted net income, which excludes the CAD 91 million FDIC special assessment charges and other noncore miscellaneous charges, decreased by 4% from a year ago to CAD 1.8 billion. Adjusted earnings per share were CAD 1.81, representing an increase of 15% quarter over quarter and a decrease of 7% year over year. Given that first-quarter results and management's outlook all largely align with our previous views of CIBC, we maintain our current fair value estimate of CAD 64/USD 48, and we view shares as fairly valued.

Price vs Fair Value

CM is trading at a 3% premium.
Price
CAD 65.77
Fair Value
CAD 46.00
Uncertainty
Low
1-Star Price
CAD 68.00
5-Star Price
CAD 31.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

CIBC has significantly improved multiple measures of core banking performance, such as customer perception surveys, promoter scores, and products per a customer. The bank is now operating at a higher level.

Bears

CIBC is the most exposed to a downturn in the Canadian housing market, and the Canadian housing market is under stress once again, increasing overall risks for the economy and the banking system.

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News

Trading Information

Previous Close Price
CAD 64.22
Day Range
CAD 64.9666.03
52-Week Range
CAD 47.4466.03
Bid/Ask
CAD 65.45 / CAD 65.45
Market Cap
CAD 61.25 Bil
Volume/Avg
3.5 Mil / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
9.96
Price/Sales
2.57
Dividend Yield (Trailing)
5.31%
Dividend Yield (Forward)
5.47%
Total Yield
5.31%

Company Profile

Canadian Imperial Bank of Commerce is Canada's fifth-largest bank and operates three business segments: retail and business banking, wealth management, and capital markets. It serves approximately 11 million personal banking and business customers, primarily in Canada.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
48,074

Competitors

Valuation

Metric
CM
TD
BMO
Price/Earnings (Normalized)
9.9610.4411.11
Price/Book Value
1.251.421.27
Price/Sales
2.572.742.62
Price/Cash Flow
5.529.579.24
Price/Earnings
CM
TD
BMO

Financial Strength

Metric
CM
TD
BMO
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
CM
TD
BMO
Return on Assets (Normalized)
0.68%0.75%0.65%
Return on Equity (Normalized)
13.85%14.20%11.72%
Return on Invested Capital (Normalized)
Return on Assets
CM
TD
BMO
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