Shares of Comerica (CMA) of Dallas closed at $32.41 Monday, returning 27% year-to-date, following a 38% decline last year.
The shares trade just below their June 30 tangible book value, and for 12 times the consensus 2013 EPS estimate of $2.70. The consensus 2012 EPS estimate is $2.68.
Based on a quarterly payout of 15 cents, the shares have a dividend yield of 1.85%.
For the 12-month period ended June 30, Comerica's ROA was 0.76%, while the company's ROE was 6.71%.The company reported that its second-quarter ROA improved to 0.93%. The low price-to-book ratio for the shares reflects in part the pressure on the company's net interest margin in the prolonged low-rate environment. Comerica reported that its second-quarter net interest margin narrowed to 3.10%, from 3.19% in the first quarter and 3.14% in the second quarter of 2011. Stifel Nicolaus analyst Christopher Mutascio on Friday downgraded Comerica to a "Sell" rating, because of "the lack of earnings catalysts and the high P/E multiples." Mutascio estimates that Comerica will earn $2.61 for all of 2012, followed by EPS of $2.61 in 2013, and said that the shares were trading high even to his "normalized" earnings estimate of three dollars a share. " The downgrade is not an indictment on management," he said. "In fact, we believe management has done an admirable job in navigating the company through the financial crisis and the ensuing challenging operating environment." CMA data by YCharts
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