Comerica Inc (CMA, Financial), a prominent player in the banking industry, has experienced a notable fluctuation in its stock price recently. Over the past week, the stock has seen a decline of 2.92%, yet it has surged by 17.11% over the last three months. Currently, the market capitalization stands at $7.58 billion with a stock price of $57.15. According to GuruFocus, the GF Value of Comerica is estimated at $65.33, suggesting that the stock is modestly undervalued. This is a shift from three months ago when the GF Value was at $76.72, indicating a possible value trap at that time.
Overview of Comerica Inc
Comerica Inc, headquartered in Dallas, Texas, is a financial services company primarily focused on relationship-based commercial banking. The company operates in key regions such as Texas, California, and Michigan, with additional locations in Arizona, Florida, Canada, and Mexico. This geographical spread allows Comerica to cater to a diverse client base across various states and countries, enhancing its market presence and operational reach.
Assessing Profitability
Comerica's Profitability Rank is currently at 5/10. The company's Return on Equity (ROE) is 10.76%, which is better than 58.66% of 1,587 companies in the banking industry. Its Return on Assets (ROA) stands at 0.75%, surpassing 41.93% of its industry peers. Notably, Comerica has maintained profitability for the past 10 years, a feat better than 99.94% of its competitors, highlighting its consistent performance and financial stability.
Growth Metrics
The Growth Rank for Comerica stands at 4/10. The company has demonstrated a solid growth pattern, with a 3-year revenue growth rate per share of 9.10%, ranking better than 57.64% of 1,532 companies in the industry. Its 5-year revenue growth rate per share is 6.60%, which is also above the industry median. Furthermore, the 3-year EPS without NRI growth rate is an impressive 31.20%, significantly higher than 75.65% of its peers. However, the 5-year EPS growth rate is relatively modest at 4.00%.
Key Shareholders
Notable shareholders of Comerica include Louis Moore Bacon (Trades, Portfolio), holding 1,300,153 shares (0.98%), Third Avenue Management (Trades, Portfolio) with 476,412 shares (0.36%), and Richard Pzena (Trades, Portfolio) who owns 433,892 shares (0.33%). These significant investments reflect confidence in Comerica's business model and future prospects.
Competitive Landscape
Comerica operates in a competitive environment with close rivals such as Pinnacle Financial Partners Inc (PNFP, Financial) with a market cap of $7.19 billion, Zions Bancorp NA (ZION, Financial) at $6.7 billion, and SouthState Corp (SSB, Financial) valued at $7.12 billion. These companies, similar in market capitalization, provide a benchmark for comparing Comerica's financial health and market position.
Conclusion
Comerica Inc's current market position is robust, characterized by a solid profitability track record and promising growth metrics. The stock's recent performance, coupled with its modest undervaluation according to GF Value, suggests potential for future appreciation. Investors should consider Comerica's competitive standing and consistent profitability when evaluating its investment potential in the dynamic banking sector.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
