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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 2.16
CMA's Cash to Debt is ranked higher than
75% of the 1736 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.91 vs. CMA: 2.16 )
CMA' s 10-Year Cash to Debt Range
Min: 0.07   Max: 2.71
Current: 2.16

0.07
2.71
Equity to Asset 0.11
CMA's Equity to Asset is ranked higher than
78% of the 2309 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.09 vs. CMA: 0.11 )
CMA' s 10-Year Equity to Asset Range
Min: 0.07   Max: 0.12
Current: 0.11

0.07
0.12
Interest Coverage 9.16
CMA's Interest Coverage is ranked higher than
95% of the 2192 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.16 vs. CMA: 9.16 )
CMA' s 10-Year Interest Coverage Range
Min: 0.22   Max: 9.16
Current: 9.16

0.22
9.16
F-Score: 6
Z-Score: 0.31
WACC vs ROIC
9.07%
13.33%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 33.49
CMA's Operating margin (%) is ranked higher than
78% of the 2420 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 30.39 vs. CMA: 33.49 )
CMA' s 10-Year Operating margin (%) Range
Min: -4.39   Max: 45.12
Current: 33.49

-4.39
45.12
Net-margin (%) 22.84
CMA's Net-margin (%) is ranked higher than
76% of the 2420 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 22.16 vs. CMA: 22.84 )
CMA' s 10-Year Net-margin (%) Range
Min: 0.65   Max: 31.47
Current: 22.84

0.65
31.47
ROE (%) 7.95
CMA's ROE (%) is ranked higher than
71% of the 2420 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 9.01 vs. CMA: 7.95 )
CMA' s 10-Year ROE (%) Range
Min: 0.24   Max: 23.29
Current: 7.95

0.24
23.29
ROA (%) 0.87
CMA's ROA (%) is ranked higher than
74% of the 2427 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.80 vs. CMA: 0.87 )
CMA' s 10-Year ROA (%) Range
Min: 0.03   Max: 2.02
Current: 0.87

0.03
2.02
ROC (Joel Greenblatt) (%) 157.76
CMA's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 2386 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 90.48 vs. CMA: 157.76 )
CMA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -17.33   Max: 281.37
Current: 157.76

-17.33
281.37
Revenue Growth (3Y)(%) 1.20
CMA's Revenue Growth (3Y)(%) is ranked higher than
71% of the 2096 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.20 vs. CMA: 1.20 )
CMA' s 10-Year Revenue Growth (3Y)(%) Range
Min: -24.8   Max: 37.3
Current: 1.2

-24.8
37.3
EBITDA Growth (3Y)(%) 15.20
CMA's EBITDA Growth (3Y)(%) is ranked higher than
85% of the 1863 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.40 vs. CMA: 15.20 )
CMA' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -81.1   Max: 344.5
Current: 15.2

-81.1
344.5
EPS Growth (3Y)(%) 14.90
CMA's EPS Growth (3Y)(%) is ranked higher than
81% of the 1888 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 9.30 vs. CMA: 14.90 )
CMA' s 10-Year EPS Growth (3Y)(%) Range
Min: -43.8   Max: 54
Current: 14.9

-43.8
54
» CMA's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2014

CMA Guru Trades in Q2 2014

Jim Simons 101,347 sh (New)
Paul Tudor Jones 4,400 sh (New)
David Dreman 3,105 sh (+8.83%)
Third Avenue Management 2,556,661 sh (+6.07%)
PRIMECAP Management 681,400 sh (+4.75%)
John Keeley 10,830 sh (+2.85%)
HOTCHKIS & WILEY 491,720 sh (+2.12%)
Pioneer Investments 428,397 sh (+0.81%)
Martin Whitman 1,626,949 sh (unchged)
George Soros Sold Out
Richard Pzena 3,518,311 sh (-5.68%)
RS Investment Management 598,615 sh (-10.65%)
Jeremy Grantham 34,500 sh (-11.08%)
» More
Q3 2014

CMA Guru Trades in Q3 2014

Caxton Associates 65,000 sh (New)
Paul Tudor Jones 7,000 sh (+59.09%)
Jeremy Grantham 53,600 sh (+55.36%)
PRIMECAP Management 776,400 sh (+13.94%)
David Dreman 3,207 sh (+3.29%)
Richard Pzena 3,630,268 sh (+3.18%)
Pioneer Investments 436,467 sh (unchged)
John Keeley 10,830 sh (unchged)
Martin Whitman 1,626,949 sh (unchged)
Jim Simons Sold Out
HOTCHKIS & WILEY Sold Out
Third Avenue Management 2,464,210 sh (-3.62%)
RS Investment Management 484,620 sh (-19.04%)
» More
Q4 2014

CMA Guru Trades in Q4 2014

Ray Dalio 8,048 sh (New)
Jim Simons 209,147 sh (New)
Paul Tudor Jones 30,541 sh (+336.30%)
PRIMECAP Management 889,300 sh (+14.54%)
Third Avenue Management 2,726,120 sh (+10.63%)
David Dreman 3,511 sh (+9.48%)
RS Investment Management 486,280 sh (+0.34%)
Martin Whitman 1,817,049 sh (+11.68%)
Caxton Associates Sold Out
Pioneer Investments Sold Out
Richard Pzena 3,552,661 sh (-2.14%)
John Keeley 10,530 sh (-2.77%)
Jeremy Grantham 45,800 sh (-14.55%)
» More
Q1 2015

CMA Guru Trades in Q1 2015

Diamond Hill Capital 8,123 sh (New)
Third Avenue Management 3,146,650 sh (+15.43%)
David Dreman 3,851 sh (+9.68%)
Jeremy Grantham 49,700 sh (+8.52%)
RS Investment Management 522,000 sh (+7.35%)
John Keeley 11,030 sh (+4.75%)
Martin Whitman 2,152,249 sh (+18.45%)
Jim Simons Sold Out
Ray Dalio Sold Out
Richard Pzena 3,128,023 sh (-11.95%)
PRIMECAP Management 334,400 sh (-62.40%)
Paul Tudor Jones 5,707 sh (-81.31%)
» More
» Details

Insider Trades

Latest Guru Trades with CMA

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Guru Investment Theses on Comerica Inc

Third Avenue Value Fund Comments on Comerica Inc - Sep 12, 2014

We have preferred regional banks for three reasons. First, at TAM we focus on price to tangible book value (P/TBV) as opposed to simple P/B. Tangible book value is a better measure of intrinsic value as it excludes intangible assets which wouldn’t carry much value in liquidation. As discussed earlier, one of the dimensions we focus on as we evaluate companies is the assets. The valuations of KEY and CMA are much closer to peers listed above on a P/TBV basis. Evaluating just a single statistic may provide misleading conclusions when evaluating an investment. Thus, we also consider how well a company can compound its book value over time. As seen in the table above, both KEY and CMA are generating higher returns on assets (ROA) than peers. This is important as companies that generate higher returns deserve premium valuations. Again, we distinguish among the many metrics. We focus on ROA as the measure of ROA does not favor companies that carry higher leverage and perhaps higher risk.



Second, the Tier 1 Common Equity ratios for KEY and CMA compare favorably against the money center peers. This metric indicates that the Fund’s regional banks are as well, if not better, capitalized than money center banks. As discussed in the opening paragraphs of the letter, the integrity of the balance sheet is a key dimension to our analysis.



Third, the chart above also shows the Level III assets for each company. Level III assets are not traded in liquid markets so prices are determined using a company’s internal models. Those prices could be entirely accurate, but as seen during the financial crisis, when liquidity dries up, asset prices of illiquid securities can get distorted quickly. We aren’t willing to take that risk. By focusing on KEY and CMA’s TBV and lower exposure to Level III assets, we gain additional comfort with their balance sheets. The regulators agree with our view. The table above shows “severely stressed capital ratios” from the Federal Reserve test earlier this year. The stress test assumptions are extreme (deep recession, high unemployment, 50% decline in equity prices and 2001 house prices), but the results do provide insight into the strength of the asset portfolios.



KEY and CMA’s above average results on the stress tests are another indication of the high transparency and durability of their balance sheets.



In sum, a discount to book value isn’t good enough for us at TAM to invest in a stock. We also need conviction in adequate downside protection. Investing in companies with low leverage and high quality assets helps us develop that conviction. CMA and KEY fit our strict criteria and have provided solid returns to investors thus far and as both grow book value plus dividends in the future, we are confident those returns will continue.



The Fund invested in the common stocks in KEY and CMA at discounts to tangible book and with the expectation that they could grow book value at double digit rates over time. Given the satisfactory ROAs and BV compounding (trailing twelve month BV growth including dividends: CMA: 12%, KEY: 9.8%), we are happy with how our companies are executing, despite persistently low interest rates and sluggish loan growth. What’s more impressive is that our companies are able to generate higher ROAs despite carrying more excess capital which weighs on returns. Both companies are positive contributors to the Fund’s performance year to date.



From Third Avenue Value Fund’s Third Quarter 2014 Commentary.



Check out Martin Whitman latest stock trades

Top Ranked Articles about Comerica Inc

Martin Whitman Adds to Holdings in Financial Services Companies
Of the 20 stocks in which guru Martin Whitman (Trades, Portfolio) traded in January of this year, he added to his holdings in eight. There was no real pattern to Whitman’s stock buys – except for the facts that two were in the Banking sector, and they dwarfed all of Whitman’s other January purchases. Read more...
Third Avenue Value Fund Comments on Comerica Inc
We have preferred regional banks for three reasons. First, at TAM we focus on price to tangible book value (P/TBV) as opposed to simple P/B. Tangible book value is a better measure of intrinsic value as it excludes intangible assets which wouldn’t carry much value in liquidation. As discussed earlier, one of the dimensions we focus on as we evaluate companies is the assets. The valuations of KEY and CMA are much closer to peers listed above on a P/TBV basis. Evaluating just a single statistic may provide misleading conclusions when evaluating an investment. Thus, we also consider how well a company can compound its book value over time. As seen in the table above, both KEY and CMA are generating higher returns on assets (ROA) than peers. This is important as companies that generate higher returns deserve premium valuations. Again, we distinguish among the many metrics. We focus on ROA as the measure of ROA does not favor companies that carry higher leverage and perhaps higher risk. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.60
CMA's P/E(ttm) is ranked higher than
75% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 18.10 vs. CMA: 15.60 )
CMA' s 10-Year P/E(ttm) Range
Min: 7.78   Max: 58.45
Current: 15.6

7.78
58.45
Forward P/E 14.31
CMA's Forward P/E is ranked higher than
72% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 14.31 )
N/A
PE(NRI) 15.50
CMA's PE(NRI) is ranked higher than
78% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 18.10 vs. CMA: 15.50 )
CMA' s 10-Year PE(NRI) Range
Min: 7.85   Max: 62.15
Current: 15.5

7.85
62.15
P/B 1.20
CMA's P/B is ranked higher than
77% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.40 vs. CMA: 1.20 )
CMA' s 10-Year P/B Range
Min: 0.38   Max: 2.15
Current: 1.2

0.38
2.15
P/S 3.47
CMA's P/S is ranked higher than
61% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 3.74 vs. CMA: 3.47 )
CMA' s 10-Year P/S Range
Min: 0.73   Max: 4.16
Current: 3.47

0.73
4.16
PFCF 13.00
CMA's PFCF is ranked higher than
80% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 13.00 )
CMA' s 10-Year PFCF Range
Min: 2.86   Max: 300.67
Current: 13

2.86
300.67
POCF 11.77
CMA's POCF is ranked higher than
81% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 152.54 vs. CMA: 11.77 )
CMA' s 10-Year POCF Range
Min: 2.36   Max: 59.15
Current: 11.77

2.36
59.15
EV-to-EBIT 6.29
CMA's EV-to-EBIT is ranked higher than
95% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 20.11 vs. CMA: 6.29 )
CMA' s 10-Year EV-to-EBIT Range
Min: -3139.2   Max: 282.5
Current: 6.29

-3139.2
282.5
PEG 0.14
CMA's PEG is ranked higher than
100% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 0.14 )
CMA' s 10-Year PEG Range
Min: 0.17   Max: 1141
Current: 0.14

0.17
1141
Shiller P/E 24.50
CMA's Shiller P/E is ranked higher than
77% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 24.50 )
CMA' s 10-Year Shiller P/E Range
Min: 3.09   Max: 34.23
Current: 24.5

3.09
34.23

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.64
CMA's Dividend Yield is ranked lower than
67% of the 2273 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.49 vs. CMA: 1.64 )
CMA' s 10-Year Dividend Yield Range
Min: 0.45   Max: 17.02
Current: 1.64

0.45
17.02
Dividend Payout 0.25
CMA's Dividend Payout is ranked higher than
90% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.70 vs. CMA: 0.25 )
CMA' s 10-Year Dividend Payout Range
Min: 0.13   Max: 3.47
Current: 0.25

0.13
3.47
Dividend growth (3y) 25.50
CMA's Dividend growth (3y) is ranked higher than
90% of the 1374 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 7.20 vs. CMA: 25.50 )
CMA' s 10-Year Dividend growth (3y) Range
Min: -56.1   Max: 40.1
Current: 25.5

-56.1
40.1
Yield on cost (5-Year) 6.86
CMA's Yield on cost (5-Year) is ranked higher than
85% of the 2281 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 2.85 vs. CMA: 6.86 )
CMA' s 10-Year Yield on cost (5-Year) Range
Min: 1.93   Max: 72.99
Current: 6.86

1.93
72.99
Share Buyback Rate 0.20
CMA's Share Buyback Rate is ranked higher than
87% of the 1718 Companies
in the Global Banks - Regional - US industry.

( Industry Median: -1.70 vs. CMA: 0.20 )
CMA' s 10-Year Share Buyback Rate Range
Min: 24.2   Max: -29.1
Current: 0.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.30
CMA's Price/Tangible Book is ranked higher than
80% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.70 vs. CMA: 1.30 )
CMA' s 10-Year Price/Tangible Book Range
Min: 0.59   Max: 3.87
Current: 1.3

0.59
3.87
Price/DCF (Projected) 0.80
CMA's Price/DCF (Projected) is ranked higher than
84% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 0.80 )
CMA' s 10-Year Price/DCF (Projected) Range
Min: 0.2   Max: 0.98
Current: 0.8

0.2
0.98
Price/Median PS Value 1.20
CMA's Price/Median PS Value is ranked higher than
73% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.30 vs. CMA: 1.20 )
CMA' s 10-Year Price/Median PS Value Range
Min: 0.37   Max: 2.01
Current: 1.2

0.37
2.01
Price/Peter Lynch Fair Value 0.60
CMA's Price/Peter Lynch Fair Value is ranked higher than
97% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 0.00 vs. CMA: 0.60 )
CMA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.52   Max: 2.49
Current: 0.6

0.52
2.49
Price/Graham Number 0.90
CMA's Price/Graham Number is ranked higher than
77% of the 3220 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 1.20 vs. CMA: 0.90 )
CMA' s 10-Year Price/Graham Number Range
Min: 0.51   Max: 2.86
Current: 0.9

0.51
2.86
Earnings Yield (Greenblatt) 15.80
CMA's Earnings Yield (Greenblatt) is ranked higher than
93% of the 2411 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 6.50 vs. CMA: 15.80 )
CMA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.4   Max: 27.8
Current: 15.8

0.4
27.8
Forward Rate of Return (Yacktman) 34.25
CMA's Forward Rate of Return (Yacktman) is ranked higher than
88% of the 1441 Companies
in the Global Banks - Regional - US industry.

( Industry Median: 14.45 vs. CMA: 34.25 )
CMA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -45.8   Max: 98.9
Current: 34.25

-45.8
98.9

Business Description

Industry: Banks » Banks - Regional - US
Compare:MTB, USB, PNC, PB, CFR » details
Traded in other countries:CA3.Germany,
Comerica Inc is incorporated under the laws of the State of Delaware in 1973. The Company is a financial services company which operates in three business segments: the Business Bank, the Retail Bank, and Wealth Management. The Business Bank is mainly comprised of the several businesses which include middle market, commercial real estate, national dealer services, international finance, leasing, financial services, and technology and life sciences. This business segment meets the needs of medium-size businesses, multinational corporations and governmental entities by offering various products and services, including commercial loans and lines of credit, deposits, cash management, capital market products, international trade finance, letters of credit, foreign exchange management services and loan syndication services. The Retail Bank includes small business banking and personal financial services, consisting of consumer lending, consumer deposit gathering and mortgage loan origination. In addition to financial services provided to small business customers, this business segment offers consumer products, including deposit accounts, installment loans, credit cards, student loans, home equity lines of credit and residential mortgage loans. Wealth Management offers products and services consisting of fiduciary services, private banking, retirement services, investment management and advisory services, investment banking and brokerage services. This business segment also offers the sale of annuity products, as well as life, disability and long-term care insurance products. The Company's banking subsidiaries compete mainly with banks based in its main areas of operations in the United States for loans, deposits and trust accounts. The Company is subject to supervision and regulation at the federal level by the Board of Governors of the Federal Reserve System.
» More Articles for CMA

Headlines

Articles On GuruFocus.com
Martin Whitman Adds to Holdings in Financial Services Companies Apr 09 2015 
Martin Whitman's recent trades Mar 17 2015 
Third Avenue Value Fund Comments on Comerica Inc Sep 12 2014 
Valuation of Martin Whitman’s Four New Buys Jul 10 2012 
Third Avenue Value Fund Buys Devon Energy, Comeric, Applied Materials, Alleghany, White Mountains In Jul 10 2012 
Third Avenue Management Comments on Comerica Jun 28 2012 
Interview With Marty Whitman's Successor at the Third Avenue Value Fund Jun 28 2012 
Marty Whitman's Successor Ian Kapey Discusses Third Avenue Portfolio and Investment Strategy Jun 28 2012 
Comerica Inc. (CMA) EVP and CFO Elizabeth S Acton sells 4,413 Shares Mar 03 2011 
Comerica Inc. Reports Operating Results (10-K) Feb 28 2011 

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