Canadian Imperial Bank of Commerce (CM) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Guardian Capital Group Ltd.

Currency Exchange International Corp.

VersaBank

Canadian Imperial Bank of Commerce

National Bank of Canada

Givex Corp.

Canadian Western Bank

Tokens.com Corp.

EQB, Inc.

Clip Money, Inc.

Wellfield Technologies, Inc.

Why is Canadian Imperial Bank of Commerce ?

Strong Long Term Fundamental Strength with Tier 1 Capital Adeqacy Ratio of 14.08%

The company has declared Positive results for the last 8 consecutive quarters

ROCE(HY) Highest at 0.75%
DIVIDEND PER SHARE(HY) Highest at CAD 0
OPERATING PROFIT MARGIN(Q) Highest at 12.56 %

With ROA of 0.48%, it has a very attractive valuation with a 1.65 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 33.93%, its profits have risen by 21.1% ; the PEG ratio of the company is 0.6

High Institutional Holdings at 50.59%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 3.02% over the previous quarter.

Market Beating performance in long term as well as near term

Along with generating 33.93% returns in the last 1 year, the stock has outperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Canadian Imperial Bank of Commerce should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Canadian Imperial Bank of Commerce for you?

Low Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Canadian Imperial Bank of Commerce

61.9%

1.92

15.80%

S&P/TSX 60

23.72%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

24.32%

EBIT Growth (5y)

15.66%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

45.00%

Pledged Shares

Institutional Holding

50.92%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.90

EV to EBIT

28.71

EV to EBITDA

25.62

EV to Capital Employed

1.26

EV to Sales

5.92

PEG Ratio

0.53

Dividend Yield

ROCE (Latest)

4.40%

ROE (Latest)

14.33%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

ROCE(HY)

Highest at 0.78%

DIVIDEND PER SHARE(HY)

Highest at CAD 0

NII(Q)

Highest at CAD 4,132 MM

NET PROFIT(Q)

Highest at CAD 2,174 MM

EPS(Q)

Highest at CAD 2.2

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 12,732 MM

ROCE(HY)

Lowest at 0.78%

GROSS NPA (%)

DIVIDEND PAYOUT RATIO(Y)

Lowest at 43.78%

CREDIT DEPOSIT RATIO(HY)

Lowest at 80.05%

Here's what is working for Canadian Imperial Bank of Commerce

NII

Highest at CAD 4,132 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (CAD MM)

Dividend per share

Highest at CAD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (CAD)

Net Profit

Highest at CAD 2,174 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 2.2

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Depreciation

Highest at CAD 324 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Canadian Imperial Bank of Commerce

Operating Cash Flow

Lowest at CAD 12,732 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)

Non Performing Loans (%)

Highest at 0.58%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Credit Deposit Ratio

Lowest at 80.05%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately lower loans against its deposits, thereby creating fewer revenue generating assets

Credit Deposit Ratio (%)

Dividend Payout Ratio

Lowest at 43.78%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)