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Commonwealth Bank of Australia (CMWAY)
OTHER OTC:CMWAY
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Commonwealth Bank of Australia
(OTC:CMWAY)
Rating:63Neutral
Price Target:―
Commonwealth Bank of Australia (CMWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$198.82B
Dividend Yield0.03%
Average Volume (3M)2.32K
Price to Earnings (P/E)30.9
Beta (1Y)0.63
Revenue Growth16.73%
EPS Growth0.04%
CountryUS
Employees49,682
SectorFinancial
Sector Strength76
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.03
Shares Outstanding1,673,462,400
10 Day Avg. Volume0
30 Day Avg. Volume2,317
Financial Highlights & Ratios
PEG Ratio-5.06
Price to Book (P/B)2.36
Price to Sales (P/S)0.00
P/FCF Ratio25.05
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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 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. It offers transaction, savings, 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, and importer finance products. The company also provides 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, 2021, it operated 875 branches and 2,492 ATMs. The company was founded in 1911 and is based in Sydney, Australia.
How the Company Makes MoneyCommonwealth Bank of Australia generates revenue primarily through interest income, which comes from loans and advances to customers. The bank also earns income from fees and commissions related to banking services, such as account management fees, transaction fees, and advisory fees. Additionally, the bank benefits from trading and investment income, which includes gains from financial markets operations. Insurance premiums and fund management fees contribute to its non-interest income. Partnerships with various financial technology firms and a focus on digital banking services have enhanced its revenue streams by attracting more customers and facilitating efficient service delivery.
Commonwealth Bank of Australia Earnings Call Summary
Earnings Call Date:Feb 11, 2025
(Q2-2025)
| % Change Since: 12.31%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong lending growth, technological investments, and improved financial stability, but also emphasized challenges such as rising costs and housing market pressures. The bank's strategic focus on technology and customer support positions it well for future growth, despite a competitive environment.Q2-2025 Updates
Positive Updates
Record Lending and Investment in Technology
The bank lent $21 billion to businesses, helped over 70,000 households buy a home, and invested $450 million in combating financial crimes, reducing scam losses by over 70% in two years.
Strong Financial Position and Shareholder Returns
Cash NPAT grew by 2%, supported by volume growth and a lower loan impairment expense. A first half dividend of $2.25 was declared, up $0.10 from the prior period, with a 3% increase in operating income.
Significant Digital and Technological Advancements
The bank increased its technology investment to record levels, including the launch of Australia's first GenAI-powered messaging service, contributing to a high Net Promoter Score.
Improved Customer Support and Financial Stability
65,000 tailored payment arrangements for customers in need and a 15% reduction in hardship assistance, reflecting improved customer support.
Negative Updates
Cost Pressures
Operating expenses rose by 6%, driven by inflation and increased technology investments, exceeding revenue growth.
Continued Challenges in Housing Market
Housing affordability remains a significant concern, with prices up 20% over four years, including rents up 18%.
Competitive Deposit Environment
Increased competition in the deposit market, leading to significant headwinds on net interest margins.
Company Guidance
In the Commonwealth Bank of Australia's briefing for the half-year ending December 2024, several key metrics were highlighted to demonstrate the bank's performance and strategic direction. The bank reported $21 billion in business lending and supported over 70,000 households in acquiring homes. They paid $11 billion in interest to savers and returned $4.2 billion to shareholders. The bank's technology investments reached record levels, with $450 million spent to combat fraud and cybercrime, resulting in a 70% reduction in scam losses over two years. The bank's NameCheck technology was used 80 million times, preventing over $650 million in potential losses. The bank's focus on customer support saw them providing 65,000 tailored payment arrangements and helping over 3 million customers manage their finances digitally each month. Their net interest margin was stable despite competitive pressures, and their capital ratio stood at 12.2%, well above the regulatory requirement. The bank maintained a strong balance sheet with $6.2 billion in provisions, supporting their strategic focus on technology and customer experience while achieving a 2% growth in cash net profit after tax.Commonwealth Bank of Australia Financial Statement Overview
Summary
CMWAY demonstrates strong operational performance with high margins, but faces challenges with revenue volatility and cash flow management. Its balance sheet reflects typical industry leverage, yet cash flow issues could pose risks if not addressed.Income Statement
The company's revenue has shown volatility, decreasing from 2023 to 2024 after a significant drop from 2022 to 2023. Gross profit margin remains robust, indicating effective cost management, while net profit margin is stable but slightly lower due to decreased net income. EBIT and EBITDA margins are strong, reflecting efficient operational performance.70
Positive
Balance Sheet
The balance sheet shows a high debt-to-equity ratio, typical for the banking industry, suggesting reliance on leverage. However, the equity ratio is stable, indicating a solid equity base. Return on Equity has remained reasonably strong, showing efficient use of shareholder funds despite the high leverage.65
Positive
Cash Flow
Cash flow analysis indicates a negative trend with declining operating and free cash flows, especially in the latest period. The operating cash flow to net income ratio is worrying due to negative operating cash flow, suggesting potential liquidity issues. However, historical free cash flow generation was positive, indicating some capacity for recovery.55
Neutral
| Breakdown | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 | Jun 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.31B | 49.10B | 29.20B | 30.20B | 35.79B |
| Gross Profit | 27.31B | 49.10B | 29.20B | 30.20B | 35.79B |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 9.39B | 10.00B | 10.69B | 10.18B | 9.59B |
Balance Sheet | |||||
| Total Assets | 1.25T | 1.25T | 1.22T | 1.09T | 1.02T |
| Cash, Cash Equivalents and Short-Term Investments | 47.32B | 107.17B | 119.36B | 87.38B | 27.31B |
| Total Debt | 249.35B | 267.56B | 188.00B | 167.23B | 202.62B |
| Total Liabilities | 1.18T | 1.18T | 1.14T | 1.01T | 943.53B |
| Stockholders Equity | 73.09B | 72.00B | 72.83B | 78.68B | 71.93B |
Cash Flow | |||||
| Free Cash Flow | -26.95B | 6.78B | 20.68B | 12.54B | -345.00M |
| Operating Cash Flow | -25.62B | 8.35B | 21.66B | 13.30B | 1.19B |
| Investing Cash Flow | -1.11B | -15.74B | -96.76B | -38.79B | -18.71B |
| Financing Cash Flow | -10.71B | -5.62B | 106.72B | 85.98B | 27.84B |
Commonwealth Bank of Australia Technical Analysis
Neutral
112.88
Price Trends
115.74
Negative
106.85
Positive
101.70
Positive
Market Momentum
-0.17
Positive
39.41
Neutral
38.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMWAY, the sentiment is Neutral. The current price of 112.88 is below the 20-day moving average (MA) of 118.65, below the 50-day MA of 115.74, and above the 200-day MA of 101.70, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 39.41 is Neutral, neither overbought nor oversold. The STOCH value of 38.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMWAY.
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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $219.26B | 11.60 | 10.83% | 7.53% | -1.91% | -6.79% | |
78 Outperform | $262.42B | 13.82 | 11.51% | 1.94% | 0.22% | 19.89% | |
76 Outperform | $150.87B | 12.66 | 9.18% | 2.56% | 5.39% | 20.82% | |
73 Outperform | $175.57B | 13.90 | 6.64% | 2.38% | 0.52% | 89.25% | |
73 Outperform | $356.41B | 13.87 | 9.46% | 2.68% | 3.21% | 20.49% | |
68 Neutral | $16.93B | 11.67 | 9.79% | 3.89% | 11.83% | -7.56% | |
63 Neutral | $198.82B | 30.90 | 13.41% | 0.03% | 16.73% | 0.04% |
* Financial Sector Average
Performance Comparison
CMWAY
Commonwealth Bank of Australia
112.88
27.66
32.46%
BAC
Bank of America
47.77
6.37
15.39%
C
Citigroup
94.00
31.46
50.30%
HSBC
HSBC Holdings
64.06
23.41
57.59%
MUFG
Mitsubishi UFJ
13.68
2.60
23.47%
WFC
Wells Fargo
82.38
24.11
41.38%
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.