Canadian Imperial Bank of Commerce Fundamental Analysis
Canadian Imperial Bank of Commerce (CM) shows moderate financial fundamentals with a PE ratio of 10.45, profit margin of 15.88%, and ROE of 15.24%. The company generates $84.9B in annual revenue with weak year-over-year growth of 1.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CM's fundamental strength across five key dimensions:
Efficiency Score
WeakCM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCM trades at attractive valuation levels.
Growth Score
ModerateCM shows steady but slowing expansion.
Financial Health Score
WeakCM carries high financial risk with limited liquidity.
Profitability Score
ExcellentCM achieves industry-leading margins.
Key Financial Metrics
Is CM Expensive or Cheap?
P/E Ratio
CM trades at 10.45 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CM's PEG of 0.28 indicates potential undervaluation.
Price to Book
The market values Canadian Imperial Bank of Commerce at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -1.78 times EBITDA. This is generally considered low.
How Well Does CM Make Money?
Net Profit Margin
For every $100 in sales, Canadian Imperial Bank of Commerce keeps $15.88 as profit after all expenses.
Operating Margin
Core operations generate 19.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.24 in profit for every $100 of shareholder equity.
ROA
Canadian Imperial Bank of Commerce generates $0.85 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Canadian Imperial Bank of Commerce produces operating cash flow of $9.67B, showing steady but balanced cash generation.
Free Cash Flow
Canadian Imperial Bank of Commerce produces free cash flow of $7.97B, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.60 in free cash annually.
FCF Yield
CM converts 4.13% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
10.45
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.28
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
2.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How CM Stacks Against Its Sector Peers
| Metric | CM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 10.45 | 19.38 | Better (Cheaper) |
| ROE | 15.24% | 804.00% | Weak |
| Net Margin | 15.88% | -7623.00% (disorted) | Strong |
| Debt/Equity | 2.76 | 1.07 | Weak (High Leverage) |
| Current Ratio | 0.10 | 609.22 | Weak Liquidity |
| ROA | 0.85% | -20946.00% (disorted) | Weak |
CM outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Canadian Imperial Bank of Commerce's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
263.38%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
111.82%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-78.14%
Industry Style: Value, Dividend, Cyclical
Declining