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Canadian Imperial Bank of Commerce CM

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Stock XTSE Rating as of
CAD 83.86 +0.24 (0.29%)
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As of Delayed Price Closed

Company Report

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Canadian Imperial Bank of Commerce Earnings: Better Provisioning and Strong Trading Results

Michael Miller,

Narrow-moat-rated Canadian Imperial Bank of Commerce, or CIBC, reported decent fiscal third-quarter earnings that were largely in line with our expectations, with strong trading results helping total revenue. Adjusted net income increased by 28% from a year ago to CAD 1.9 billion. Adjusted earnings per share were CAD 1.93, representing an increase of 27% year over year and 10% quarter over quarter. The results translate into an adjusted ROE of 14%, still below the bank’s medium-term target of 16%. We note that the third quarter of last year was hit by oversized provisioning, making for an easier year-over-year comparison. Given that third-quarter results and management's outlook all largely align with our previous views of CIBC, we maintain our current fair value estimates of CAD 70/USD 51, and we view shares as moderately overvalued.

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Price vs Fair Value

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CM is trading at a 746% premium.
Price
CAD 83.86
Fair Value
CAD 42.00
Uncertainty
Low
1-Star Price
CAD 17.30
5-Star Price
CAD 96.00
Economic Moat
Mntbb
Capital Allocation
Htsypjfb

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 customer. The bank is now operating at a higher level.

Bears

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

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News

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Trading Information

Previous Close Price
CAD 83.62
Day Range
CAD 83.47–84.46
52-Week Range
CAD 47.44–84.46
Bid/Ask
CAD 83.82 / CAD 83.88
Market Cap
CAD 79.25 Bil
Volume/Avg
3.3 Mil / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
11.86
Price/Sales
3.17
Dividend Yield (Trailing)
4.26%
Dividend Yield (Forward)
4.29%
Total Yield
4.26%

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
Website
https://www.cibc.com

Competitors

Valuation

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Metric
CM
TD
RY
Price/Earnings (Normalized)
 11.8610.8713.83
Price/Book Value
 1.511.522.12
Price/Sales
 3.172.714.29
Price/Cash Flow
 9.0912.4612.01
Price/Earnings
CM
TD
RY

Financial Strength

Metric
CM
TD
RY
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
No chart available

Profitability

Metric
CM
TD
RY
Return on Assets (Normalized)
 0.70%0.74%0.83%
Return on Equity (Normalized)
 13.93%14.06%15.12%
Return on Invested Capital (Normalized)
 ———
Return on Assets
CM
TD
RY

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