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Commonwealth Bank of Australia (CMWAY)
OTHER OTC:CMWAY
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Commonwealth Bank of Australia (CMWAY) AI Stock Analysis

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CMWAY

Commonwealth Bank of Australia

(OTC:CMWAY)

Rating:57Neutral
Price Target:
$111.00
â–²(0.68% Upside)
The overall stock score reflects strong financial growth and strategic investments highlighted in the earnings call, offset by high leverage, negative cash flows, and bearish technical indicators. Competitive pressures and valuation concerns also weigh on the score.

Commonwealth Bank of Australia (CMWAY) vs. SPDR S&P 500 ETF (SPY)

Commonwealth Bank of Australia Business Overview & Revenue Model

Company DescriptionCommonwealth Bank of Australia (CBA), headquartered in Sydney, is one of the largest and most prominent financial institutions in Australia. The bank operates across various sectors including retail banking, business banking, institutional banking, and wealth management. CBA offers a wide range of core products and services such as personal and home loans, savings and transaction accounts, credit cards, insurance, investment services, and financial advisory, catering to both individual and corporate clients.
How the Company Makes MoneyCommonwealth Bank generates revenue primarily through interest income from loans and advances, which constitutes a significant portion of its earnings. The bank charges interest on various loan products, including home loans, personal loans, and business loans. Another substantial revenue stream comes from fees and commissions associated with banking services, such as account maintenance fees, transaction fees, and fees for wealth management services. Additionally, CBA earns income from its investment portfolio and trading activities. The bank also has strategic partnerships with various fintech companies and service providers, enhancing its digital offerings and customer reach, which contributes to its overall profitability. Furthermore, CBA benefits from economies of scale as one of the leading banks in Australia, allowing it to manage costs effectively while expanding its service offerings.

Commonwealth Bank of Australia Earnings Call Summary

Earnings Call Date:Aug 12, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call presented a robust financial performance with strong growth in assets and customer accounts, substantial investments in security and technology, and significant reductions in customer losses from scams. However, the bank faces challenges from competitive pressures in the industry, particularly impacting margins and retail MFI share.
Q4-2025 Updates
Positive Updates
Record Risk-Weighted Asset Growth
The bank achieved record risk-weighted asset growth of $29 billion, indicating a strong expansion in lending across key segments.
Significant Reduction in Customer Losses from Scams
Investments in combating fraud and cyber threats led to a 76% reduction in customer losses from scams since late 2022.
Strong Dividend and Capital Position
The bank paid $8 billion in dividends, benefiting over 13 million Australians, and maintained a capital ratio of 12.3%, which is $10 billion above the regulatory requirement.
Continued Growth in Customer Accounts
Retail transaction accounts increased 4% since June 2024, while business transaction accounts grew 7% in the same period.
Improvements in Digital Engagement
The CommBank app now has over 9 million active users with more than 12.7 million daily logins, and digital NPS leads peers across key platforms.
Negative Updates
Competitive Pressure in the Banking Sector
The bank faced increased competitive intensity, particularly in deposit pricing and mortgage lending, impacting margins.
Challenges in Retail MFI Share
Retail MFI share performance was weaker compared to FY 2024, with increased competition cited as a contributing factor.
Impact of Lower Interest Rates
Margins were impacted by lower interest rates and ongoing competitive intensity, which could continue to pressure net interest margin (NIM) in the future.
Company Guidance
During the Commonwealth Bank of Australia's full-year results briefing for the year ended June 30, 2025, CEO Matt Comyn and CFO Alan Docherty provided extensive guidance on the bank's financial performance and strategic priorities. The bank reported a record risk-weighted asset growth of $29 billion and a sustainable dividend of $4.85 per share, with a fully neutralized reinvestment plan. Over the past year, they made significant investments, including $900 million to combat fraud and cyber threats, resulting in a 76% reduction in customer scam losses. The bank also achieved a 4% growth in cash net profit after tax, driven by strong operating performance and a 9.5% decrease in loan impairment expense. Their balance sheet remained strong with a capital ratio of 12.3%, exceeding regulatory requirements by $10 billion. The bank expanded its lending by $42 billion to businesses and provided $22 billion in interest to savers. They increased their investment by $300 million, focusing on technology and AI, which contributed to enhanced customer experiences and operational improvements. The bank's efforts in AI and technology were highlighted, with strategic partnerships and investments in AI capabilities to bolster customer engagement and operational efficiency.

Commonwealth Bank of Australia Financial Statement Overview

Summary
Commonwealth Bank of Australia shows strong revenue growth but faces challenges with high leverage and negative cash flows. Profitability is stable, but high debt levels and cash flow issues pose potential risks.
Income Statement
70
Positive
The income statement shows a strong revenue growth rate of 160.88% in the most recent year, indicating significant expansion. However, the gross profit margin has decreased from previous years, and the net profit margin has also declined to 14.50%. The EBIT and EBITDA margins are relatively stable, suggesting consistent operational efficiency.
Balance Sheet
60
Neutral
The balance sheet reveals a high debt-to-equity ratio of 2.74, indicating significant leverage, which could pose financial risks. Return on equity is stable at 12.84%, reflecting consistent profitability. The equity ratio is not explicitly calculated, but the high leverage suggests a lower equity proportion relative to total assets.
Cash Flow
45
Neutral
Cash flow analysis shows negative operating and free cash flows, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive but reflects reliance on non-operational cash sources.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue26.73B69.74B26.12B26.33B25.14B23.65B
Gross Profit47.78B28.66B27.31B27.07B23.29B23.55B
EBITDA694.00M15.95B0.0015.41B15.17B13.76B
Net Income9.77B10.12B9.39B10.00B10.69B10.18B
Balance Sheet
Total Assets1.31T1.35T1.25T1.25T1.22T1.09T
Cash, Cash Equivalents and Short-Term Investments82.78B55.50B47.32B108.01B120.31B88.52B
Total Debt203.85B216.23B136.15B181.67B188.00B160.43B
Total Liabilities1.23T1.28T1.18T1.18T1.14T1.01T
Stockholders Equity75.26B78.78B73.09B71.63B72.83B78.68B
Cash Flow
Free Cash Flow-36.43B-2.46B-48.57B6.78B20.68B12.54B
Operating Cash Flow-36.03B-825.00M-48.16B8.35B21.66B13.30B
Investing Cash Flow-480.00M-329.00M-1.11B-15.74B-96.76B-38.79B
Financing Cash Flow1.40B7.59B-10.71B-5.62B106.72B85.98B

Commonwealth Bank of Australia Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price110.25
Price Trends
50DMA
113.07
Negative
100DMA
111.23
Negative
200DMA
103.30
Positive
Market Momentum
MACD
-0.74
Negative
RSI
47.61
Neutral
STOCH
25.78
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 110.25 is below the 20-day moving average (MA) of 110.40, below the 50-day MA of 113.07, and above the 200-day MA of 103.30, indicating a neutral trend. The MACD of -0.74 indicates Negative momentum. The RSI at 47.61 is Neutral, neither overbought nor oversold. The STOCH value of 25.78 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
81
Outperform
$224.04B12.8310.69%5.00%-2.96%-13.66%
77
Outperform
$262.14B13.8111.51%2.09%0.37%19.89%
74
Outperform
$172.50B14.329.43%2.28%0.82%28.48%
74
Outperform
$142.56B9.9412.85%2.44%-14.74%17.03%
73
Outperform
$178.71B14.056.64%2.39%0.52%89.25%
68
Neutral
$18.06B11.9710.24%3.74%9.75%1.30%
57
Neutral
$184.08B27.9013.41%2.80%5.15%6.57%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CMWAY
Commonwealth Bank of Australia
110.25
17.93
19.42%
C
Citigroup
95.40
37.64
65.17%
HSBC
HSBC Holdings
65.61
24.31
58.86%
MUFG
Mitsubishi UFJ
15.27
5.35
53.93%
WFC
Wells Fargo
78.96
25.56
47.87%
SAN
Banco Santander SA
9.53
4.86
104.07%
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: Sep 04, 2025