Commonwealth Bank of Australia (CBA) AI Stock Analysis

• Market Cap: AU$279.29B
• Dividend Yield: 2.86%
• Average Volume (3M): 1.89M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 1.02
• Revenue Growth: 6.39%
• EPS Growth: 7.78%
• Country: AU
• Employees: 49,682
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.98
• Shares Outstanding: 1,673,462,400
• 10 Day Avg. Volume: 2,010,364
• 30 Day Avg. Volume: 1,887,976
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$122.41
• Price Target Upside: -26.73% Downside
• Rating Consensus: Strong Sell
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• Price Target: AU$184.00 ▲(10.14% Upside)

Commonwealth Bank of Australia demonstrates strong financial performance with robust revenue growth and profitability. However, high leverage and cash flow issues pose risks. The earnings call provided a balanced view with significant achievements in asset growth and technology, offset by competitive pressures and rising expenses. The stock's valuation appears high, and technical indicators suggest neutral momentum.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust business expansion and effective market penetration, supporting long-term financial health.

Technological Advancements

Investments in technology and AI enhance operational efficiency and customer experience, providing a competitive edge in digital banking.

Strong Lending Growth

Growth in lending indicates strong demand for the bank's services and contributes to revenue stability and expansion.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially affecting the bank's ability to manage economic downturns.

Rising Expenses

Rising expenses outpacing income growth can pressure margins and profitability, necessitating cost management improvements.

Competitive Pressure on Margins

Competitive pressure on margins can impact profitability, requiring strategic adjustments to maintain market position.

Commonwealth Bank of Australia Business Overview & Revenue Model

Company Description

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. It operates through Retail Banking Services, Business Banking, Institutional Banking and Markets, and New Zealand segments. The company offers transaction, savings, and foreign currency accounts; term deposits; personal and business loans; overdrafts; equipment finance; credit cards; international payment and trade; and private banking services, as well as home and car loans. It also provides retail, premium, business, offshore, and institutional banking services; and funds management, superannuation, and share broking products and services, as well as car, health, life, income protection, and travel insurance. The company offers advisory services for high-net-worth individuals; equities trading and margin lending services; debt capital, transaction banking, working capital, and risk management services; and international and foreign exchange services. As of June 30, 2022, it operated 807 branches/service centres and 2,095 ATMs. The company was founded in 1911 and is based in Sydney, Australia.

How the Company Makes Money

CBA generates revenue through multiple streams primarily centered around its banking operations. A significant portion of its income comes from net interest income, which is the difference between interest earned on loans and interest paid on deposits. The bank also earns fees and commissions from various financial services, such as transaction accounts, credit card services, asset management, and insurance products. Additionally, CBA benefits from wealth management and investment services, contributing to its non-interest income. The bank's earnings are further supported by its strategic partnerships and investments in technology to enhance its digital banking capabilities, expanding its customer base and improving operational efficiency.

Commonwealth Bank of Australia Financial Statement Overview

Summary

Commonwealth Bank of Australia shows strong revenue growth and profitability, with effective equity utilization. However, high leverage and cash flow challenges present risks. Operational efficiencies and improved cash flow management are crucial for financial health.

Income Statement

The income statement reflects strong revenue growth with a 160.88% increase in the latest year, indicating robust business expansion. The gross profit margin remains healthy, and the net profit margin is solid, showcasing profitability. However, the EBIT and EBITDA margins suggest room for operational efficiency improvements.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, indicating significant leverage, which could pose risks if not managed carefully. However, the return on equity is strong, reflecting effective use of equity to generate profits. The equity ratio is moderate, suggesting a balanced asset structure.

Cash Flow

The cash flow statement reveals challenges with negative free cash flow growth and negative operating cash flow, which could impact liquidity. The free cash flow to net income ratio is unfavorable, indicating cash flow issues despite profitability. This area requires attention to ensure sustainable cash generation.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.74B	69.74B	65.53B	48.56B	28.11B	29.37B
Gross Profit	28.66B	28.66B	27.31B	27.14B	23.29B	23.55B
EBITDA	14.71B	15.95B	15.28B	15.42B	15.17B	13.76B
Net Income	10.12B	10.12B	9.39B	10.00B	10.69B	10.18B
Balance Sheet
Total Assets	1.35T	1.35T	1.25T	1.25T	1.22T	1.09T
Cash, Cash Equivalents and Short-Term Investments	55.50B	55.50B	48.11B	108.01B	120.31B	88.52B
Total Debt	216.23B	216.23B	186.69B	161.55B	151.60B	140.76B
Total Liabilities	1.28T	1.28T	1.18T	1.18T	1.14T	1.01T
Stockholders Equity	78.78B	78.78B	73.09B	71.63B	72.83B	78.68B
Cash Flow
Free Cash Flow	-12.91B	-2.46B	8.51B	6.78B	20.68B	12.54B
Operating Cash Flow	8.68B	-825.00M	8.91B	8.35B	21.66B	13.30B
Investing Cash Flow	-75.55B	-329.00M	-1.11B	-15.74B	-96.76B	-38.79B
Financing Cash Flow	73.31B	7.59B	-10.71B	-5.62B	106.72B	85.98B

Commonwealth Bank of Australia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 167.06
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:CBA, the sentiment is Positive. The current price of 167.06 is below the 20-day moving average (MA) of 167.12, below the 50-day MA of 169.59, and above the 200-day MA of 163.14, indicating a bullish trend. The MACD of -0.68 indicates Negative momentum. The RSI at 54.29 is Neutral, neither overbought nor oversold. The STOCH value of 72.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:CBA.

Commonwealth Bank of Australia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANZ	74 Outperform	AU$99.15B	14.63	―	4.99%	11.11%	-2.11%
CBA	69 Neutral	AU$279.29B	27.59	13.22%	2.86%	6.39%	7.78%
WBC	69 Neutral	AU$132.34B	19.23	―	3.92%	9.91%	8.52%
NAB	61 Neutral	AU$134.43B	19.75	11.33%	3.86%	6.86%	0.51%
MQG	57 Neutral	AU$80.30B	22.40	10.51%	2.96%	7.15%	6.38%
CPU	56 Neutral	AU$21.07B	22.72	28.20%	2.55%	6.44%	22.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Commonwealth Bank of Australia Corporate Events

Commonwealth Bank of Australia Announces New Distribution for CAP NOTE

Commonwealth Bank of Australia announced a new distribution for its security, CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-06-30, with a distribution amount of AUD 1.1484. The distribution relates to a quarterly period ending on December 15, 2025, with the record date set for December 5, 2025, and payment to be made on December 15, 2025. This announcement highlights the bank’s ongoing commitment to providing returns to its investors, potentially enhancing its attractiveness to stakeholders and maintaining its competitive position in the financial market.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$124.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank of Australia Announces New Dividend Distribution

The Commonwealth Bank of Australia has announced a new dividend distribution for its security CBAPL, with a distribution amount of AUD 1.1222. The ex-date for this dividend is set for December 4, 2025, with the record date on December 5, 2025, and payment scheduled for December 15, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may influence the bank’s market positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$124.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank of Australia Announces New Dividend Distribution

The Commonwealth Bank of Australia has announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-06-29, with a payment amount of AUD 1.1047. The distribution is scheduled for payment on December 15, 2025, with an ex-date of December 4, 2025, and a record date of December 5, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and maintaining its financial stability, potentially impacting its market positioning positively.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$124.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank of Australia Announces New Dividend Distribution

The Commonwealth Bank of Australia has announced a new dividend distribution for its security CBAPJ, with a distribution amount of AUD 1.1047. The payment is scheduled for December 15, 2025, with a record date of December 5, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may impact its financial performance and investor relations positively.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$124.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank of Australia Announces New Dividend Distribution

Commonwealth Bank of Australia announced a new dividend distribution for its security CBAPI, with a distribution amount of AUD 1.1484. The ex-date for this distribution is set for December 4, 2025, with the record date on December 5, 2025, and payment to be made on December 15, 2025. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and maintaining its financial stability.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$124.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank Releases 2025 AGM Notice

Commonwealth Bank of Australia has released its 2025 Notice of Annual General Meeting (AGM) in compliance with ASX Listing Rules. The announcement includes details about the AGM, voting and proxy forms, and shareholder questions, which are accessible on the CBA website. This release is part of CBA’s ongoing commitment to transparency and shareholder engagement, potentially impacting its corporate governance and stakeholder relations.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$130.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Commonwealth Bank of Australia Updates on Voting Share Control

The Commonwealth Bank of Australia has announced the aggregated percentage of voting shares it controls, which stands at 0.03% of the total voting shares issued. This update, in compliance with an exemption from the Australian Securities and Investments Commission, indicates that the bank and its controlled entities have minimal control over voting shares, with no net economic exposure.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$143.70 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.