Canadian Imperial Bank Of Commerce /Can/ (NYSE: CM)

Sector: Financial Services Industry: Banks - Diversified CIK: 0001045520
Market Cap 90.32 Bn
P/B 1.97
P/E 15.68
P/S 4.34
ROIC (Qtr) 1.40
Div Yield % 2.13
Rev 1y % (Qtr) 12.86
Total Debt (Qtr) 563.73 Bn
Debt/Equity (Qtr) 12.31
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About

Investment thesis

Bull case

  • Operating cash flow of 9.88B provides exceptional 553.52x coverage of minority interest expenses 17.86M, showing strong core operations.
  • Operating cash flow of 9.88B provides strong 691.90x coverage of stock compensation 14.29M, indicating sustainable incentive practices.
  • Robust free cash flow of 9.09B exceeds capital expenditure of 792.14M by 11.48x, indicating strong organic growth funding capability.
  • Cash position of 46.93B provides exceptional 2628x coverage of minority interest expenses 17.86M, indicating strong liquidity.
  • Operating cash flow of 9.88B provides strong 294.43x coverage of tax liabilities 33.57M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 9.88B barely covers its investment activities of (4.13B), with a coverage ratio of -2.40, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 9.88B provides thin coverage of dividend payments of (2.85B) with a -3.47 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Free cash flow of 9.09B represents just -99.45x of debt issuance (91.43M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of 9.88B is outpaced by equity issuance of (1.12B) (-8.82 ratio), indicating concerning reliance on equity markets for funding operations.
  • R&D investment of 0 represents just 0x of SG&A expenses of 9.21B, indicating potential underinvestment in innovation relative to administrative overhead.

Subsegments. Breakdown of Revenue (2025)

Geographical areas [axis] Breakdown of Revenue (2025)

Peer comparison

Companies in the Banks - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 JPM Jpmorgan Chase & Co 1,043.32 Bn 33.97 9.59 942.38 Bn
2 BAC Bank Of America Corp /De/ 532.79 Bn 28.35 6.13 708.27 Bn
3 WFC Wells Fargo & Company/Mn 446.49 Bn 124.86 10.43 408.42 Bn
4 C Citigroup Inc 376.35 Bn 51.48 4.87 720.33 Bn
5 RY Royal Bank Of Canada 244.65 Bn 16.82 5.14 9.97 Bn
6 TD Toronto Dominion Bank 165.03 Bn 11.57 3.41 7.67 Bn
7 BK Bank of New York Mellon Corp 143.13 Bn 63.87 9.95 51.52 Bn
8 BMO Bank Of Montreal /Can/ 107.49 Bn 17.28 4.15 179.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.54 0.22
EV to Cash from Ops. EV/CFO 43.38 241.80
EV to Debt EV to Debt 0.76 2.53
EV to EBIT EV/EBIT 55.00 33.73
EV to EBITDA EV/EBITDA 49.54 25.98
EV to Free Cash Flow [EV/FCF] EV/FCF 47.16 245.05
EV to Market Cap EV to Market Cap 4.75 1.98
EV to Revenue EV/Rev 20.61 9.02
Price to Book Value [P/B] P/B 1.97 3.87
Price to Earnings [P/E] P/E 15.68 33.57
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.32 2.37
Dividend Payout Ratio % Div Payout % (Qtr) 33.50 29.28
Dividend per Basic Share Div per Share (Qtr) 2.06 2.04
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 15.06 15.72
Interest Coverage Interest Coverage 0.00 0.00
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.38 -5.81
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.51 -8.06
Dividend Growth (1y) % Div 1y % (Qtr) -38.98 -10.21
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 16.78 32.26
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.56 22.90
EBIT Growth (1y) % EBIT 1y % (Qtr) 17.87 30.58
EBT Growth (1y) % EBT 1y % (Qtr) 17.87 30.58
EPS Growth (1y) % EPS 1y % (Qtr) 16.55 38.83
FCF Growth (1y) % FCF 1y % (Qtr) 25.48 235.05
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.15 9.67
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.03
Cash Payout Ratio Cash Payout (Qtr) 0.27 0.17
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 12.31 3.24
Interest Cover Ratio Interest Cover Ratio 0.00 0.00
Times Interest Earned Times Interest Earned 0.00 0.00
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 41.50 38.15
EBIT Margin % EBIT Margin % (Qtr) 52.45 38.03
EBT Margin % EBT Margin % (Qtr) 37.46 33.01
Gross Margin % Gross Margin % (Qtr) 100.00 98.96
Net Profit Margin % Net Margin % (Qtr) 27.70 26.44