Canadian Imperial Bank of Commerce/Canada Net Income jumped on 19.5% in 2016
01.12.2016 • About Canadian Imperial Bank of Commerce/Canada (
$CM) • By InTwits
Canadian Imperial Bank of Commerce/Canada reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Canadian Imperial Bank of Commerce/Canada has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's a lot of higher than industry average of 7.1%.
- CAPEX is quite volatile: 1,073 in 2016, 2,994 in 2015, 5,290 in 2014, 6,297 in 2013, 5,478 in 2012
- The company has business model with average profitability: ROIC is at 10.5%
- It operates with high leverage: Net Debt/EBITDA is 17.2x while industry average is 6.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Canadian Imperial Bank of Commerce/Canada ($CM) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 17,130 | 17,076 | 17,381 | 17,424 | 18,761 | 7.7% |
| Net Income | 3,331 | 3,352 | 3,218 | 3,576 | 4,275 | 19.5% |
Balance Sheet
|
|---|
| Cash | 2,613 | 2,211 | 2,694 | 3,053 | 3,500 | 14.6% |
| Short Term Debt | 13,035 | 13,327 | 12,999 | 9,806 | 10,338 | 5.4% |
| Long Term Debt | 6,501 | 4,228 | 4,978 | 3,874 | 3,366 | -13.1% |
Cash flow
|
|---|
| Capex | 309 | 248 | 251 | 256 | 170 | -33.6% |
Ratios
|
|---|
| Revenue growth | -1.6% | -0.3% | 1.8% | 0.2% | 7.7% | |
| Net Income Margin | 19.4% | 19.6% | 18.5% | 20.5% | 22.8% | 2.3% |
| CAPEX, % of revenue | 1.8% | 1.5% | 1.4% | 1.5% | 0.9% | -0.6% |
| ROIC | 9.2% | 9.3% | 8.8% | 9.1% | 10.5% | 1.4% |
| ROE | 22.4% | 20.8% | 18.6% | 18.6% | 19.8% | 1.2% |
Canadian Imperial Bank of Commerce/Canada ($CM) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 4,448 | 4,536 | 5,091 | 4,686 | -0.6% | 6.2% | 16.1% | 9.2% |
| Net Income | 977 | 936 | 1,435 | 927 | 6.2% | 3.2% | 47.5% | 19.5% |
Balance Sheet
|
|---|
| Cash | 3,255 | 2,821 | 2,942 | 3,500 | 8.2% | -14.9% | -8.0% | 14.6% |
| Short Term Debt | 9,590 | 9,625 | 9,433 | 10,338 | -8.5% | -8.8% | -17.2% | 5.4% |
| Long Term Debt | 3,385 | 3,354 | 3,400 | 3,366 | -30.4% | -13.3% | -11.6% | -13.1% |
Ratios
|
|---|
| Net Income Margin | 22.0% | 20.6% | 28.2% | 19.8% | 1.4% | -0.6% | 6.0% | 1.7% |
Revenue and profitability
Canadian Imperial Bank of Commerce/Canada's Revenue increased on 7.7%. Revenue growth showed acceleration in FY16Q4 - it increased 9.2% YoY.
Net Income marign increased on 2.3 pp from 20.5% to 22.8% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.91%. The company's CAPEX/Revenue decreased slightly on 0.55 pp from 1.5% in FY2013 to 0.91% in FY2016. It's average CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at good ROE (19.78%) while ROIC is low (10.51%). ROIC increased slightly on 1.4 pp from 9.1% to 10.5% in FY2016. ROE increased slightly on 1.2 pp from 18.6% to 19.8% in FY2016.
Leverage (Debt)
Debt showed almost no change in FY2016 while cash surged on 14.6%.
Management team
Victor G Dodig is a the company's CEO. Victor G Dodig is a founder and has spent 4 years at the company. Canadian Imperial Bank of Commerce/Canada's CFO Kevin A Glass has spent 7 years at the company.
Appendix 1: Peers in Financial
Below you can find Canadian Imperial Bank of Commerce/Canada benchmarking vs. other companies in Financial industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Grenville Strategic Royalty Corp ($GRC) | | | | 317.2% | |
| StorageVault Canada Inc ($SVI) | | 22.2% | 7.5% | 111.8% | |
| Slate Retail REIT ($SRT.UN) | | 316.8% | 229.7% | 92.5% | 21.6% |
| Mogo Finance Technology Inc ($GO) | | 13.7% | 34.6% | 86.0% | 14.6% |
| Morguard Corp ($MRC) | | 27.2% | 9.2% | 58.8% | 4.6% |
| |
|---|
| Median (54 companies) | | 7.1% | 9.0% | 3.3% | 5.2% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Olympia Financial Group Inc ($OLY) | 80.9% | 82.6% | 83.2% | 84.5% | 83.5% |
| Morguard Corp ($MRC) | 74.0% | 69.9% | 68.6% | 76.5% | 75.5% |
| Mogo Finance Technology Inc ($GO) | 70.4% | 64.5% | 63.4% | 62.3% | |
| StorageVault Canada Inc ($SVI) | 18.2% | 22.6% | 18.3% | 52.4% | |
| Clarke Inc ($CKI) | 28.1% | 20.0% | 18.9% | 43.4% | 41.6% |
| |
|---|
| Median (9 companies) | 28.1% | 30.7% | 28.3% | 43.4% | 30.3% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Firm Capital Mortgage Investment Corp ($FC) | 87.6% | 87.9% | 88.8% | 86.6% | |
| Equitable Group Inc ($EQB) | 88.1% | 87.4% | 86.0% | 84.7% | 83.0% |
| Atrium Mortgage Investment Corp ($AI) | 79.8% | | | 81.9% | 83.2% |
| Trez Capital Mortgage Investment Corp ($TZZ) | | | | 76.2% | |
| First National Financial Corp ($FN) | 67.8% | 76.5% | 77.1% | 74.6% | |
| |
|---|
| Median (37 companies) | 43.7% | 33.5% | 39.8% | 32.5% | 43.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dundee Corp ($DC.A) | 10.3% | 14.1% | 88.8% | 123.6% | |
| Gazit-Globe Ltd ($GZT) | 80.2% | 43.3% | 52.1% | 69.3% | 95.5% |
| First Capital Realty Inc ($FCR) | 127.9% | 76.1% | 73.8% | 56.7% | 79.7% |
| Killam Properties Inc ($KMP) | 80.7% | 114.1% | 143.5% | 46.7% | 59.9% |
| StorageVault Canada Inc ($SVI) | 150.5% | 73.3% | 79.1% | 21.4% | |
| |
|---|
| Median (56 companies) | 0.6% | 0.6% | 0.7% | 0.7% | 0.7% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CI Financial Corp ($CIX) | | | | | 24.1% |
| FirstService Corp ($FSV) | | | | | 17.4% |
| IGM Financial Inc ($IGM) | 14.2% | 14.2% | 13.7% | 13.7% | 13.1% |
| Alaris Royalty Corp ($AD) | 9.5% | 10.1% | 10.7% | 7.3% | 12.3% |
| Genworth MI Canada Inc ($MIC) | 11.9% | 9.6% | 9.7% | 9.5% | 9.4% |
| |
|---|
| Median (56 companies) | 4.6% | 3.8% | 3.9% | 3.0% | 3.1% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Element Financial Corp ($EFN) | 140.2x | 31.9x | 37.6x | 79.9x | 22.6x |
| First National Financial Corp ($FN) | 34.3x | 33.7x | 40.9x | 37.4x | |
| StorageVault Canada Inc ($SVI) | 11.2x | 9.7x | 13.6x | 35.7x | |
| Gazit-Globe Ltd ($GZT) | 12.8x | 12.7x | 15.3x | 22.1x | 15.2x |
| Equitable Group Inc ($EQB) | 11.8x | 10.2x | 9.8x | 12.3x | 13.7x |
| |
|---|
| Median (28 companies) | 5.3x | 4.6x | 4.7x | 6.0x | 7.8x |
|---|
