Canadian Imperial Bank of Commerce (CM): fair value, margin of safety and Wheel Score

Is CM undervalued?

Canadian Imperial Bank of Commerce (CM) closed at 112.26 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 148.21, so the price sits 24% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.

The 9 models disagree widely: GLS Growth gives 60.42 while 10 Cap gives 287.07. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files CM under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for CM

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health CM scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.8 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 2.0%, ROE 13.1%, ROA 0.8% - with debt at 5.55 times equity and a free-cash-flow yield of 7.6%. Debt of 5.55 times equity is on the high side for the sector and is worth checking against the cash flow before treating the stock as a long-term hold.

The dividend yield is 2.69% at a payout ratio of 43%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold.

Institutional ownership scores 8/10, insider activity 5/10 and Congressional trading 1/10 on the GLS smart-money scales.

Wheel Score 70: Good

CM scores 70 out of 100 on the Wheel Score (Good band, 65-79). The score blends the margin of safety (Value, 23/25), Piotroski health (16/20), the GLS moat (6/15), the option premium on offer (10/20) and how easily the stock trades (16/20). Moat (6/15) is the part holding the score back.

Implied volatility is 25% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (10 of 20 points). Chain open interest is 22,204 contracts across all expiries - enough for the wheel at normal size.

Volume runs at 491k shares a day on a market cap of $101.9B, with a beta of 1.24 - a high beta, so the stock tends to move more than the market and a strike can be gapped through; the Stability part of the Wheel Score gives that 16 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

The next earnings report is due on 3 Dec 2026, 48 days away - outside the window of a 30-45-day put sold today.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

Similar stocks in Banks - Diversified

The 12 companies below are the closest to Canadian Imperial Bank of Commerce by market cap within the Banks - Diversified industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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