Canadian Imperial Bank of Commerce (CM) Fundamental Analysis: Bull vs. Bear Case

CM

Canadian Imperial Bank of Commerce

Fundamental data last updated:May 13, 2026

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company profile

SECTOR

Financial Services

industry

Banks - Diversified

Exchange

NYSE

County of HQ

CA

Next Earnings Date

05/28/2026

Business Summary

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. The company offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services. It also provides day-to-day banking, borrowing and credit, specialty, investing and wealth, and international services; correspondent banking and online foreign exchange services; and cash management services. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.

VALUATION

P/E

10.96 Market Cap ($M USD)

$102.79B

Forward P/E

9.87 PEG

0.89 PRICE TO SALES

2.65 PRICE TO BOOK

2.15 EV / EBITDA

23.86 5-Year Average P/E

Free Cash Flow Yield

-0.65%

DCF Value

$141.47

Graham Number

$126.84

Price to FCF

-153.53

EV to FCF

-331.53

Earnings Yield

6.67%

FCF Yield

-0.65%

DIVIDEND

Yield

2.69%

Annual Payout

$4.08

Payout Ratio

43.66%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$10.12

Next Year EPS Growth Estimate

$11.24

Next Year Revenue Growth Estimate

$3.04T

Return on Equity (ROE)

14.76%

FREE CASH FLOW

Operating Margin

21.63%

Debt-to-Equity

5.55 Piotroski F-Score

5 Altman Z-Score

0.06 Return on Invested Capital (ROIC)

1.17%

Current Ratio

0.07 Quick Ratio

0.07 Net Debt to EBITDA

12.81 Interest Coverage

0.36 Gross Profit margin

52.27%

FCF PER SHARE

$-0.99

REVENUE PER SHARE

$57.40

Gainseekers Quantitative Analysis

Summary

The market seems to have overlooked CM’s intrinsic value, as recent pricing indicated it traded below its DCF value of 142.81. This discrepancy suggests a potential undervaluation, especially when the Graham Number also supports a higher valuation. With a Forward P/E of 9.78, the stock appears attractively priced for growth, yet the alarmingly low Altman Z-score of 0.06 signals financial distress. The earnings yield of 6.74% is decent, but the company’s overall safety and growth prospects are questionable given its high leverage.

AI Exposure / Tech Reliance

Operating within the financial services sector, CM is positioned to leverage AI for enhanced risk management and customer service. However, as a traditional bank, its adaptability to rapid tech shifts may lag behind fintech disruptors. The industry’s inherent conservatism could slow its tech adoption pace.

The Bull Case

For the discerning GARP investor, CM offers a compelling narrative of potential value. The company boasts a robust operating margin of 21.63%, indicating strong pricing power. Although the ROIC is modest at 1.17%, the Piotroski F-Score of 5 suggests moderate financial health. Despite a negative FCF yield, the bank's ability to maintain a dividend payout ratio of 43.66% reflects disciplined capital management.

The Bear Case

CM's structural vulnerabilities are glaring. The stock is technically overextended, trading just 3.04% below its 52-week high, suggesting limited upside. Its Price/Book ratio of 2.13 and Price/Sales of 2.62 indicate a premium valuation not justified by its weak cash flow metrics. The negative FCF yield and a staggering EV to FCF ratio of -330.00 highlight severe cash flow issues, compounded by a net debt to EBITDA ratio of 12.81, raising red flags about its leverage.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$106.62

Institutional Ownership %

1-Year Beta

1.30 Insider Buying % (6 Mo)

Distance to 52-Week High

2.12%

Distance to 52-Week Low

42.48%

EARNINGS SURPRISE %

14.37%

50-DAY SMA

$102.54

200-DAY SMA

$89.46

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.