Commonwealth Bank of Australia (CMWAY) AI Stock Analysis

• Market Cap: $182.28B
• Dividend Yield: 2.85%
• Average Volume (3M): 3.19K
• Price to Earnings (P/E): 28.6
• Beta (1Y): 0.52
• Revenue Growth: 5.15%
• EPS Growth: 6.57%
• Country: US
• Employees: 49,682
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 1,673,462,400
• 10 Day Avg. Volume: 2,567
• 30 Day Avg. Volume: 3,185
• PEG Ratio: 4.71
• Price to Book (P/B): 3.94
• Price to Sales (P/S): 4.45
• P/FCF Ratio: -126.04
• Enterprise Value/Market Cap: 2.34
• Enterprise Value/Revenue: 6.12
• Enterprise Value/Gross Profit: 14.90
• Enterprise Value/Ebitda: 58.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $111.00 ▲(7.68% 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.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust business expansion and effective market penetration, enhancing long-term financial stability.

Investment in Technology

Strategic investments in technology improve security and customer trust, positioning the bank as a leader in digital banking solutions.

Strong Capital Position

A strong capital position provides financial resilience and flexibility, supporting sustainable growth and regulatory compliance.

Negative Factors

High Leverage

High leverage can increase financial risk and reduce flexibility in managing economic downturns, impacting long-term stability.

Negative Cash Flows

Negative cash flows indicate potential liquidity challenges, which could hinder the bank's ability to invest in growth opportunities.

Competitive Pressure

Competitive pressures can erode margins and market share, challenging the bank's ability to maintain profitability in the long term.

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 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 Money

Commonwealth 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 Financial Statement Overview

Summary

Commonwealth Bank of Australia shows strong revenue growth but faces challenges with high leverage and negative cash flows. The high debt-to-equity ratio and negative operating cash flows indicate financial risks, despite stable profitability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	69.74B	69.74B	26.12B	26.33B	25.14B	23.65B
Gross Profit	28.66B	28.66B	27.31B	27.07B	23.29B	23.55B
EBITDA	7.28B	15.95B	0.00	15.41B	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	47.32B	108.01B	120.31B	88.52B
Total Debt	216.23B	216.23B	136.15B	181.67B	188.00B	160.43B
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	-48.57B	6.78B	20.68B	12.54B
Operating Cash Flow	8.68B	-825.00M	-48.16B	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: 103.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMWAY, the sentiment is Positive. The current price of 103.08 is below the 20-day moving average (MA) of 104.10, below the 50-day MA of 103.77, and below the 200-day MA of 109.22, indicating a bullish trend. The MACD of 1.08 indicates Negative momentum. The RSI at 68.72 is Neutral, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMWAY.

Commonwealth Bank of Australia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	78 Outperform	$304.16B	18.87	8.66%	4.14%	-9.54%	-22.46%
MUFG	77 Outperform	$210.35B	16.33	9.01%	2.48%	-1.09%	8.53%
SAN	72 Outperform	$185.08B	12.10	13.08%	1.85%	-15.34%	16.71%
WFC	71 Outperform	$288.04B	14.88	11.85%	1.80%	-4.37%	26.41%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
C	66 Neutral	$210.11B	16.79	6.72%	1.94%	-0.62%	105.57%
CMWAY	57 Neutral	$182.28B	28.62	―	2.85%	5.15%	6.57%