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Commonwealth Bank of Australia (AU:CBA)
ASX:CBA

Commonwealth Bank of Australia (CBA) AI Stock Analysis

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AU:CBA

Commonwealth Bank of Australia

(Sydney:CBA)

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Neutral 64 (OpenAI - 4o)
Rating:64Neutral
Price Target:
AU$162.00
▲(1.71% Upside)
The overall stock score is driven by strong financial performance and positive earnings call sentiment, despite technical analysis indicating bearish momentum and valuation concerns. The bank's strategic focus on technology and customer experience supports its long-term growth potential, but high leverage and cash flow issues need addressing.
Positive Factors
Revenue Growth
Robust revenue growth indicates strong business expansion and market demand, supporting long-term profitability and competitive positioning.
Technological Advancements
Investments in technology and AI enhance operational efficiency and customer experience, providing a sustainable competitive advantage.
Strong Lending Growth
Growth in lending indicates strong demand for financial products, supporting revenue and profit growth in core banking operations.
Negative Factors
High Leverage
High leverage can increase financial risk, potentially impacting the bank's ability to manage economic downturns and regulatory changes.
Cash Flow Challenges
Negative cash flow growth can strain liquidity, limiting the bank's ability to invest in growth opportunities and meet financial obligations.
Competitive Pressure on Margins
Competitive pressure on margins can erode profitability, necessitating strategic adjustments to maintain financial performance.

Commonwealth Bank of Australia (CBA) vs. iShares MSCI Australia ETF (EWA)

Commonwealth Bank of Australia Business Overview & Revenue Model

Company DescriptionCommonwealth 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 MoneyCBA generates revenue primarily through interest income from loans, which includes personal loans, home mortgages, and business loans. The bank also earns significant income from fees and commissions associated with its banking services, such as account maintenance fees, transaction fees, and service fees for financial products. Additionally, CBA benefits from wealth management services, including investment management and superannuation, which contribute to its fee-based income. The bank has established partnerships with various financial technology firms to enhance its service offerings and improve operational efficiency, further supporting its revenue generation. CBA's diversified revenue streams and strong market position in Australia enable it to maintain stable profitability.

Commonwealth Bank of Australia Financial Statement Overview

Summary
Commonwealth Bank of Australia shows strong revenue growth and profitability, supported by effective equity utilization. However, high leverage and cash flow challenges present potential risks. Addressing operational efficiencies and improving cash flow management will be crucial for maintaining financial health.
Income Statement
85
Very Positive
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
70
Positive
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
60
Neutral
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.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue69.74B69.74B65.53B48.56B28.11B29.37B
Gross Profit28.66B28.66B27.31B27.14B23.29B23.55B
EBITDA14.71B15.95B15.28B15.42B15.17B13.76B
Net Income10.12B10.12B9.39B10.00B10.69B10.18B
Balance Sheet
Total Assets1.35T1.35T1.25T1.25T1.22T1.09T
Cash, Cash Equivalents and Short-Term Investments55.50B55.50B48.11B108.01B120.31B88.52B
Total Debt216.23B216.23B186.69B161.55B151.60B140.76B
Total Liabilities1.28T1.28T1.18T1.18T1.14T1.01T
Stockholders Equity78.78B78.78B73.09B71.63B72.83B78.68B
Cash Flow
Free Cash Flow-12.91B-2.46B8.51B6.78B20.68B12.54B
Operating Cash Flow8.68B-825.00M8.91B8.35B21.66B13.30B
Investing Cash Flow-75.55B-329.00M-1.11B-15.74B-96.76B-38.79B
Financing Cash Flow73.31B7.59B-10.71B-5.62B106.72B85.98B

Commonwealth Bank of Australia Technical Analysis

Technical Analysis Sentiment
Positive
Last Price159.28
Price Trends
50DMA
154.29
Positive
100DMA
160.94
Negative
200DMA
166.66
Negative
Market Momentum
MACD
-0.34
Negative
RSI
62.82
Neutral
STOCH
93.80
Negative
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 159.28 is above the 20-day moving average (MA) of 152.33, above the 50-day MA of 154.29, and below the 200-day MA of 166.66, indicating a neutral trend. The MACD of -0.34 indicates Negative momentum. The RSI at 62.82 is Neutral, neither overbought nor oversold. The STOCH value of 93.80 is Negative, 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$111.57B18.567.92%4.53%5.21%-9.07%
68
Neutral
$18.00B11.429.92%3.81%9.73%1.22%
64
Neutral
AU$262.57B25.7013.34%3.00%6.39%7.78%
61
Neutral
AU$18.29B20.5829.52%2.69%6.44%22.38%
61
Neutral
AU$136.26B19.479.08%3.90%1.57%0.13%
58
Neutral
AU$134.38B19.4810.36%4.00%-4.56%-1.63%
56
Neutral
$78.16B21.8410.30%3.27%3.65%1.58%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:CBA
Commonwealth Bank of Australia
159.28
1.33
0.84%
AU:ANZ
ANZ Group Holdings
37.58
8.15
27.70%
AU:CPU
Computershare Limited
32.08
-2.35
-6.83%
AU:MQG
Macquarie Group Limited
212.44
-11.61
-5.18%
AU:NAB
National Australia Bank Limited
44.05
5.38
13.93%
AU:WBC
Westpac Banking
39.91
7.36
22.61%

Commonwealth Bank of Australia Corporate Events

Commonwealth Bank of Australia Announces Lapse of 15,110 Conditional Share Rights
Dec 22, 2025

Commonwealth Bank of Australia has notified the market that 15,110 share rights (ASX code CBAAA) have lapsed after the conditions attached to these conditional rights were not satisfied or became incapable of being satisfied, effective 22 December 2025. The cessation of these securities marginally reduces the pool of potential future equity issuance under this particular rights arrangement and reflects standard capital management and remuneration plan mechanics, with limited direct impact on the bank’s overall capital structure but relevance for participants in the affected share rights scheme.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$99.81 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
Dec 16, 2025

The Commonwealth Bank of Australia announced a new dividend distribution for its security, CBAPM – CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-06-30, with a distribution amount of AUD 1.1585. The ex-date is set for March 5, 2026, and the payment will be made on March 16, 2026. This announcement is part of the bank’s regular financial operations and reflects its ongoing commitment to providing returns to its investors, potentially impacting its market positioning and investor relations positively.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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
Dec 16, 2025

The Commonwealth Bank of Australia announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.85% PERP NON-CUM RED T-06-28, with a distribution amount of AUD 1.1326. The ex-date is set for March 5, 2026, the record date is March 6, 2026, and the payment date is March 16, 2026. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and may influence its market positioning by demonstrating financial stability and shareholder value.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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
Dec 16, 2025

The Commonwealth Bank of Australia announced a new dividend distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-06-29, with a distribution amount of AUD 1.1154. The ex-date is set for March 5, 2026, with the record date on March 6, 2026, and payment scheduled for March 16, 2026. This announcement reflects the bank’s ongoing commitment to providing returns to its investors and could impact its market positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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 Announces New Distribution for CAP NOTE Security
Dec 16, 2025

The Commonwealth Bank of Australia has announced a new distribution for its security, CAP NOTE 3-BBSW+2.75% PERP NON-CUM RED T-10-26, with a distribution amount of AUD 1.1154. The ex-date is set for March 5, 2026, with a record date of March 6, 2026, and payment date on March 16, 2026. This announcement reflects the bank’s ongoing commitment to providing returns to its stakeholders and may impact its financial positioning by reinforcing investor confidence.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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
Dec 16, 2025

The Commonwealth Bank of Australia has announced a new dividend distribution for its security, CAP NOTE 3-BBSW+3.00% PERP NON-CUM RED T-04-27, with a distribution amount of AUD 1.1585. The dividend relates to a quarterly period ending on March 15, 2026, with key dates including an ex-date of March 5, 2026, a record date of March 6, 2026, and a payment date of March 16, 2026. This announcement reflects the bank’s ongoing commitment to providing returns to its stakeholders and may influence investor perceptions and market positioning.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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 Voting Share Control Details
Dec 4, 2025

The Commonwealth Bank of Australia has announced the aggregated percentage of voting shares it controls, as per an exemption granted by the Australian Securities and Investments Commission. As of December 3, 2025, the bank and its controlled entities have the power to control voting or disposal of 0.03% of the total voting shares, with no net economic exposure. This announcement provides transparency regarding the bank’s shareholding structure, which is crucial for stakeholders and regulatory compliance.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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 Updates Director’s Interest Notice
Dec 1, 2025

The Commonwealth Bank of Australia has announced a change in the director’s interest notice for Matthew Peter Comyn. This update reflects the adjustments in his holdings of fully paid ordinary shares and rights under the Employee Equity Plan, which could impact the bank’s governance and shareholder dynamics.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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 Issues Unquoted Share Rights
Dec 1, 2025

The Commonwealth Bank of Australia has announced the issuance of 108,764 unquoted share rights as part of an employee incentive scheme. This move is aimed at enhancing employee engagement and aligning their interests with the company’s long-term goals, potentially impacting the bank’s operational dynamics and stakeholder relations positively.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$132.84 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 Ceases Substantial Holding in Karoon Energy
Nov 25, 2025

The Commonwealth Bank of Australia has announced that it has ceased to be a substantial holder in Karoon Energy Ltd as of November 24, 2025. This change in holding could impact CBA’s investment strategy and influence its market positioning, while stakeholders of Karoon Energy may see shifts in shareholder dynamics.

The most recent analyst rating on (AU:CBA) stock is a Hold with a A$162.00 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 Announces Leadership Change in Technology Division
Nov 24, 2025

The Commonwealth Bank of Australia announced the departure of its Group Executive Technology and Group Chief Information Officer, Gavin Munroe, who played a significant role in advancing the bank’s technology modernization and AI capabilities. The bank has made substantial progress in technology delivery and AI maturity, including a major migration of its SAP Core Banking platform to AWS. Interim leadership will be provided by Rodrigo Castillo and Victoria Ledda, ensuring continuity in the bank’s technology strategy.

The most recent analyst rating on (AU:CBA) stock is a Hold with a A$162.00 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 Director’s Share Acquisition
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest, as Alistair Currie acquired 28 fully paid ordinary shares through participation in the Non-Executive Director Share Plan. This change reflects the bank’s ongoing governance and compliance with corporate regulations, ensuring transparency in its operations and maintaining trust with stakeholders.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$143.20 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 Director Increases Shareholding
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest notice, highlighting that Director Katherine Neisha Howitt acquired 50 fully paid ordinary shares through participation in the Non-Executive Director Share Plan. This acquisition reflects the director’s increased stake in the company, potentially signaling confidence in the bank’s future performance and aligning with shareholder interests.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$143.20 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 Director’s Interest Notice
Nov 19, 2025

The Commonwealth Bank of Australia announced a change in the director’s interest notice for Julie Birgitte Galbo, who acquired additional shares through on-market trades. This update reflects a slight increase in her indirect shareholding, which may indicate confidence in the company’s future performance and could be of interest to stakeholders monitoring director share movements.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$143.20 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 Capital Adequacy and Risk Disclosures
Nov 10, 2025

The Commonwealth Bank of Australia has released its Capital Adequacy and Risk Disclosures as of 30 September 2025, in accordance with Basel III Pillar 3 requirements. This disclosure provides insights into the bank’s capital strength and risk management practices, which are crucial for maintaining investor confidence and ensuring regulatory compliance. The announcement underscores the bank’s commitment to transparency and robust financial health, which are essential for its competitive positioning and stakeholder trust.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$144.80 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 Reports Strong Quarterly Performance Amid Economic Challenges
Nov 10, 2025

The Commonwealth Bank of Australia reported a strong performance for the quarter ending September 2025, with a focus on customer support and strategic execution. The bank maintained a solid balance sheet, with a CET1 ratio well above the regulatory minimum and strong deposit funding. Operating income increased by 3% due to growth in lending and deposits, although net interest margins were slightly reduced. The bank paid $4.4 billion in dividends, benefiting shareholders and the broader Australian economy. Despite challenges like cost-of-living pressures and global uncertainties, the bank remains optimistic about Australia’s economic outlook and continues to focus on its strategy to support growth and stability.

The most recent analyst rating on (AU:CBA) stock is a Sell with a A$144.80 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 2025 AGM: Resolutions Passed with Strong Support
Oct 15, 2025

The Commonwealth Bank of Australia held its 2025 Annual General Meeting in Brisbane, where all resolutions were passed by a poll. Key decisions included the re-election and election of directors and the adoption of the 2025 remuneration report, indicating strong shareholder support for the current management and strategic direction of the bank.

The most recent analyst rating on (AU:CBA) stock is a Hold with a A$182.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

CBA’s 2025 AGM: Strengthening Customer Support and Digital Innovation
Oct 15, 2025

In the 2025 Annual General Meeting, CBA’s CEO Matt Comyn highlighted the bank’s efforts to support customers amidst economic challenges, such as cost-of-living pressures. The bank has implemented tailored payment arrangements, reduced financial hardship cases, and enhanced digital financial tools to aid customers. CBA has also relaunched its loyalty program, CommBank Yello, to provide additional value to its users. These initiatives underscore CBA’s commitment to being a reliable financial partner and its strategic focus on customer support and digital innovation.

The most recent analyst rating on (AU:CBA) stock is a Hold with a A$182.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

CBA’s Strategic Focus Amid Economic Challenges
Oct 15, 2025

At the 2025 Annual General Meeting, CBA’s Chair highlighted the bank’s commitment to supporting customers amidst economic challenges, such as rising living costs and housing affordability concerns. The bank’s strategy focuses on building a future-ready institution by investing in technology and its workforce, aiming to enhance living standards and provide value to shareholders.

The most recent analyst rating on (AU:CBA) stock is a Hold with a A$182.00 price target. To see the full list of analyst forecasts on Commonwealth Bank of Australia stock, see the AU:CBA Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Nov 21, 2025