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Commonwealth Bank of Australia (CMWAY)
OTHER OTC:CMWAY
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Commonwealth Bank of Australia
(OTC:CMWAY)
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Rating:57Neutral
Price Target:
$111.00
▲(7.22% 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 (CMWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$170.69B
Dividend Yield2.85%
Average Volume (3M)3.19K
Price to Earnings (P/E)26.1
Beta (1Y)0.51
Revenue Growth5.15%
EPS Growth6.57%
CountryUS
Employees49,682
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.89
Shares Outstanding1,673,462,400
10 Day Avg. Volume2,567
30 Day Avg. Volume3,185
Financial Highlights & Ratios
PEG Ratio4.71
Price to Book (P/B)3.94
Price to Sales (P/S)4.45
P/FCF Ratio-126.04
Enterprise Value/Market Cap2.76
Enterprise Value/Revenue6.75
Enterprise Value/Gross Profit16.43
Enterprise Value/Ebitda64.71
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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. 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.70
Positive
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.60
Neutral
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.45
Neutral
| 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
Negative
103.53
Price Trends
104.42
Negative
107.57
Negative
108.51
Negative
Market Momentum
-0.32
Positive
40.79
Neutral
14.07
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMWAY, the sentiment is Negative. The current price of 103.53 is below the 20-day moving average (MA) of 105.11, below the 50-day MA of 104.42, and below the 200-day MA of 108.51, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 40.79 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMWAY.
Commonwealth Bank of Australia Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $279.85B | 17.26 | 8.66% | 4.14% | -9.54% | -22.46% | |
77 Outperform | $203.37B | 16.29 | 9.01% | 2.48% | -1.09% | 8.53% | |
73 Outperform | $280.16B | 14.26 | 11.56% | 1.80% | -4.37% | 26.41% | |
72 Outperform | $179.16B | 12.17 | 12.54% | 1.85% | -15.34% | 16.71% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
60 Neutral | $201.13B | 16.08 | 6.72% | 1.94% | -0.62% | 105.57% | |
57 Neutral | $170.69B | 26.08 | ― | 2.85% | 5.15% | 6.57% |
* Financial Sector Average
CMWAY
Commonwealth Bank of Australia
102.18
10.73
11.73%
C
Citigroup
112.41
36.25
47.60%
HSBC
HSBC Holdings
81.76
34.34
72.43%
MUFG
Mitsubishi UFJ
18.16
6.11
50.74%
WFC
Wells Fargo
89.25
14.92
20.07%
SAN
Banco Santander SA
12.22
7.46
156.45%
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.