Last Updated: 13 Sep 2024
Executive Summary
Canadian Imperial Bank of Commerce (CM) is a diversified financial institution with a market capitalization of $57.87 billion. The company has a strong financial position with a profit margin of 0.296 and a return on equity of 0.124. CM's stock price is currently trading at $60.92, which is above its 50-day moving average of $52.38 but below its 200-day moving average of $48.51. Analysts have a mixed outlook on the stock, with four rating it a buy and eight rating it a hold. The company's dividend yield of 0.0437% is attractive, and its forward PE ratio of 11.0 is below the industry average.
Company Overview
Canadian Imperial Bank of Commerce is a leading Canadian financial institution that provides a wide range of financial products and services to personal, commercial, public sector, and institutional clients. The company has a strong presence in Canada, the United States, and internationally. CM's core businesses include retail banking, wealth management, and capital markets.
Fundamental Analysis
CM's financial performance has been solid in recent years. The company's revenue has grown at a compound annual growth rate of 5.2% over the past five years. Net income has also grown at a compound annual growth rate of 6.3% over the same period. CM's profitability metrics are also strong. The company's profit margin has averaged 0.296% over the past five years, and its return on equity has averaged 0.124%.
CM's balance sheet is also strong. The company has a low level of debt and a high level of capital. CM's Tier 1 capital ratio is 11.4%, which is well above the regulatory minimum.
Technical Analysis
CM's stock price has been trending higher in recent months. The stock broke out of a downtrend in March 2023 and has since rallied to a high of $61.25. The stock is currently trading above its 50-day moving average, which is a bullish sign. However, the stock is below its 200-day moving average, which is a bearish sign.
CM's relative strength index (RSI) is currently at 55.5, which is in the neutral range. The RSI is a momentum indicator that measures the magnitude of recent price changes. A reading above 70 indicates that the stock is overbought, while a reading below 30 indicates that the stock is oversold.
Short Term Outlook
CM's stock price is likely to continue to trade in a range in the near term. The stock is facing resistance at its 200-day moving average, and it is also overbought according to the RSI. However, the stock is still trading above its 50-day moving average, which is a bullish sign.
Long Term Outlook
CM's long-term outlook is positive. The company has a strong financial position and a solid track record of growth. The company is also well-positioned to benefit from the growing Canadian economy.
Analyst Recommendations
Analysts have a mixed outlook on CM's stock. Four analysts rate the stock a buy, eight rate it a hold, and one rates it a sell. The average analyst target price is $54.61, which is below the current market price.
