Summary: OVERPRICED
Score: 8/20
MOS: 67%
Share Price: $63
Sticker Price: $193
Is Comerica stock a good buy?
Comerica is a financial services company founded in 1849 and headquartered in Dallas, TX. It has retail banking operations in Texas, Michigan, Arizona, California and Florida, with select business operations in several other U.S. states, as well as in Canada and Mexico. Comerica is the largest U.S. commercial bank headquartered in Texas and is on the list of largest banks in the United States.
Comerica generates revenue with the following services…
- Personal Banking
- Small Business Banking
- Commercial Banking
- Wealth Management
CNBC mentioned on 1/19 that quarterly EPS was $1.49, beating the estimates by $.30. Although interests rates are lower, loan and deposit growth have increased.
Although this stock has some positive news and the MOS is greater than 50%, let’s take a closer look at the Income Statement, Cash Flow Statement, and Balance Sheet. Most of the data points below have been updated through Q3 of 2020. The information below is essentially a lot of the data points Tykr uses to calculate the numbers on the WHY page.
The better you can get at reading and understanding the Income Statement, Cash Flow Statement, and Balance Sheet, the better an investor you will become.
Revenue by Quarter (Found on the Income Statement)
Q4 2019 = $544M
Q1 2020 = $513M
Q2 2020 = $471M
Q3 2020 = $458M
Revenues are on a downtrend over the last year.
Net Income by Quarter (Found on the Income Statement)
Q4 2019 = $269M
Q1 2020 = $-65M
Q2 2020 = $113M
Q3 2020 = $211M
Net income is increasing. This is a good sign.
EPS by Quarter (Found on the Income Statement)
Q4 2019 = 1.85
Q1 2020 = 1.05
Q2 2020 = 5.29
Q3 2020 = .87
Q4 2020 = 1.49
EPS in Q4 bounced back! Let’s hope this will continue.
Net Change in Cash (Found on the Cash Flow Statement)
Q4 2019 = $1.2B
Q1 2020 = $-963M
Q2 2020 = $7.4B
Q3 2020 = $5.3B
The Net Change is Cash is not consistently growing.
Total Assets (Found on the Balance Sheet)
Q4 2019 = $73B
Q1 2020 = $76B
Q2 2020 = $84B
Q3 2020 = $83B
The Total Assets appear to have leveled off.
Total Liabilities (Found on the Balance Sheet)
Q4 2019 = $66B
Q1 2020 = $68B
Q2 2020 = $76B
Q3 2020 = $75B
The Total Liabilities also appear to have leveled off.
Total Debt (Found on the Balance Sheet)
Q4 2019 = $3.4B
Q1 2020 = $3.6B
Q2 2020 = $2.9B
Q3 2020 = $2.9B
The Total Debt also appears to have leveled off.
Total Equity (Found on the Balance Sheet)
Q4 2019 = $73B
Q1 2020 = $74B
Q2 2020 = $75B
Q3 2020 = $78B
The Total Equity is increasing slowly.
With a MOS of 67% this stock has some potential to grow but the issue is the score of 8/20. We need to see some improvement with the Equity Growth Rate, EPS Growth Rate, and Sales Growth Rate. Overall, we like to see a score equal or greater than 10/20 and an MOS equal or greater than 50%.
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The Summary, Score, and MOS of this stock may have changed since the posting of this review. Please login to Tykr to see up-to-date information.