Now trading at a price of $49.0, Comerica has moved 1.8% so far today.
Comerica returned losses of -37.0% last year, with its stock price reaching a high of $86.42 and a low of $28.4. Over the same period, the stock underperformed the S&P 500 index by -54.0%. As of April 2023, the company's 50-day average price was $48.11. Comerica Incorporated, through its subsidiaries, provides various financial products and services. Based in Dallas, TX, the large-cap Finance company has 7,280 full time employees. Comerica has offered a 5.8% dividend yield over the last 12 months.
The Business Runs With Low Debt Levels:
| 2018-02-15 | 2019-02-12 | 2020-02-11 | 2021-02-09 | 2022-02-16 | 2023-02-14 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $3,168 | $3,328 | $3,349 | $2,912 | $2,967 | $3,534 |
| Operating Margins | 40% | 48% | 46% | 21% | 50% | 42% |
| Net Margins | 23% | 37% | 36% | 17% | 39% | 33% |
| Net Income (MM) | $743 | $1,235 | $1,202 | $497 | $1,168 | $1,151 |
| Earnings Per Share | $4.15 | $7.18 | $7.91 | $3.44 | $8.58 | $8.22 |
| EPS Growth | n/a | 73.01% | 10.17% | -56.51% | 149.42% | -4.2% |
| Diluted Shares (MM) | 178 | 171 | 151 | 140 | 133 | 137 |
| Free Cash Flow (MM) | $1,132 | $1,698 | $1,175 | $1,002 | $696 | $717 |
| Capital Expenditures (MM) | -$47 | -$82 | -$85 | -$74 | -$62 | -$79 |
| Long Term Debt (MM) | $4,622 | $6,463 | $7,269 | $5,728 | $2,796 | $3,024 |
Comerica has weak revenue growth and a flat capital expenditure trend, average net margins with a stable trend, and irregular cash flows. We also note that the company benefits from low debt levels and a strong EPS growth trend. Furthermore, Comerica's financial statements do not display any obvious red flags.
The Market May Be Undervaluing Comerica's Assets and Equity:
Comerica has a trailing twelve month P/E ratio of 5.0, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $6.3, the company has a forward P/E ratio of 7.6. The company doesn't provide forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is 15.0%. On this basis, Comerica's PEG ratio is 0.34. Using instead the 9.6% weighted average of Comerica's earnings CAGR and the broader market's anticipated 5-year EPS growth rate, the company's PEG ratio is 0.52, which implies that its shares may be underpriced. Additionally, the market is possibly undervaluing Comerica in terms of its equity because its P/B ratio is 1.24 whereas the sector average is 1.57. The company's shares are currently trading -41.5% below their Graham number.
Comerica Has an Average Rating of Buy:
The 21 analysts following Comerica have set target prices ranging from $45.0 to $75.0 per share, for an average of $57.67 with a buy rating. As of April 2023, the company is trading -16.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Comerica has an average amount of shares sold short because 7.8% of the company's shares are sold short. Institutions own 84.9% of the company's shares, and the insider ownership rate stands at 0.55%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 12% stake in the company is worth $803,897,871.
