Commonwealth Bank of Australia (CMWAY)
OTHER OTC:CMWAY
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Commonwealth Bank of Australia
(OTC:CMWAY)
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Rating:61Neutral
Price Target:
$120.00
â–²(16.41% Upside)
Action:ReiteratedDate:02/11/26
The score is held back primarily by weak cash flow quality and elevated leverage despite strong reported revenue growth. Technicals are supportive with a clear uptrend, but overbought indicators add near-term risk. Valuation looks demanding (high P/E) with only moderate dividend support, while the latest earnings call was broadly positive on momentum and capital strength but acknowledged margin and cost headwinds.
Positive Factors
Deposit & Loan Growth
Sustained deposit and lending inflows materially bolster franchise scale and stable funding. Large deposit growth reduces wholesale reliance and supports net interest income capacity, while above-system mortgage and business lending expansion preserves market share and recurring revenue over the medium term.
Negative Factors
Weak Cash Flow Generation
Reported profits are not fully matched by operating cash conversion, limiting internally generated funds for capex, dividends and deleveraging. Persistent negative operating cash flow raises reliance on capital markets or accounting timing, weakening long-term financial flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit & Loan Growth
Sustained deposit and lending inflows materially bolster franchise scale and stable funding. Large deposit growth reduces wholesale reliance and supports net interest income capacity, while above-system mortgage and business lending expansion preserves market share and recurring revenue over the medium term.
Read all positive factors
Commonwealth Bank of Australia (CMWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$211.98B
Dividend Yield2.85%
Average Volume (3M)3.19K
Price to Earnings (P/E)12.7
Beta (1Y)0.47
Revenue Growth5.15%
EPS Growth6.57%
CountryUS
Employees49,682
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)2.10
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 Cap2.00
Enterprise Value/Revenue4.71
Enterprise Value/Gross Profit14.44
Enterprise Value/Ebitda29.29
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 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 c...
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 b...
Commonwealth Bank of Australia Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call emphasized robust financial and franchise performance: double-digit growth in parts of the business bank, strong deposit and mortgage inflows, ~6% cash profit growth, a healthy capital and liquidity position (CET1 12.3%, liquid assets $199bn) and continued investment in technology and AI with measurable productivity and safety gains. Offsetting these positives are persistent competitive intensity (pressuring margins), rising operating and IT/vendor costs, and macro/interest-rate uncertainty that could moderate future credit growth and deposit/margin dynamics. Management portrays a confident, disciplined stance with conservative provisioning and capital buffers.Positive Updates
Profitability and EPS Growth
Cash/stated profit around $5.4bn (statutory and cash profits on continuing operations), with cash net profit up ~6% year-on-year and earnings per share up $0.19. Cash profit growth described as a little over 6% on both the prior corresponding period and the prior half.
Negative Updates
Intense Competitive Pressures
Management flagged materially shifting competitive landscape with intense competition for deposits and lending; this contributes to margin pressure and requires disciplined pricing choices. One competitor has had rapid household deposit share growth which management highlighted as a market dynamic risk.
Read all updates
Q2-2026 Updates
Positive
Negative
Profitability and EPS Growth
Cash/stated profit around $5.4bn (statutory and cash profits on continuing operations), with cash net profit up ~6% year-on-year and earnings per share up $0.19. Cash profit growth described as a little over 6% on both the prior corresponding period and the prior half.
Read all positive updates
Company Guidance
Management guided to continued strong credit and deposit momentum with the economics team expecting system credit growth of roughly 6–8% over the next couple of years, and flagged a number of key metrics to underpin that outlook: cash and statutory profit were ~$5.4bn for the half (cash net profit +6% YoY, EPS +$0.19), operating income +6.6% (NII +$761m), operating expenses +5.5% ex-notables, loan impairment $319m and total provisions ~$6.3bn (≈$2.8bn above the central scenario); balance sheet settings include CET1 12.3% (~$10bn above regulatory minimum), 79% deposit funding, liquid assets $199bn, weighted-average maturity of long-term funding 5.2 years, customer deposits +$44bn in the half (annualised deposit growth 10% over 6 months), mortgage balances +$45bn/7% YoY to $622bn, business lending +12% (1.3x system, +$18bn in the year), retail MFI 33.5% and business MFI 26.9%, replicating portfolio reinvestment ~$2bn/month with 2–3 halves of positive tractor/replicating momentum expected, an effective tax rate settling near 30% for FY26, an interim fully franked dividend of $2.35 (up $0.10) with headline payout 72% (normalized 74%) and DRP neutralized (no discount), and ongoing investment (including $1bn pa on scams/fraud protection).Commonwealth Bank of Australia Financial Statement Overview
Summary
Income Statement
70
Positive
Balance Sheet
60
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 90.09B | 69.74B | 26.12B | 26.33B | 25.14B | 23.65B |
| Gross Profit | 29.38B | 28.66B | 27.31B | 27.07B | 23.29B | 23.55B |
| EBITDA | 14.48B | 15.95B | 0.00 | 15.41B | 15.17B | 13.76B |
| Net Income | 10.25B | 10.12B | 9.39B | 10.00B | 10.69B | 10.18B |
Balance Sheet | ||||||
| Total Assets | 1.41T | 1.35T | 1.25T | 1.25T | 1.22T | 1.09T |
| Cash, Cash Equivalents and Short-Term Investments | 89.91B | 55.50B | 47.32B | 108.01B | 120.31B | 88.52B |
| Total Debt | 207.44B | 216.23B | 136.15B | 181.67B | 188.00B | 160.43B |
| Total Liabilities | 1.33T | 1.28T | 1.18T | 1.18T | 1.14T | 1.01T |
| Stockholders Equity | 77.23B | 78.78B | 73.09B | 71.63B | 72.83B | 78.68B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -2.46B | -48.57B | 6.78B | 20.68B | 12.54B |
| Operating Cash Flow | 23.23B | -825.00M | -48.16B | 8.35B | 21.66B | 13.30B |
| Investing Cash Flow | -76.46B | -329.00M | -1.11B | -15.74B | -96.76B | -38.79B |
| Financing Cash Flow | 62.38B | 7.59B | -10.71B | -5.62B | 106.72B | 85.98B |
Commonwealth Bank of Australia Technical Analysis
Positive
103.08
Price Trends
118.90
Positive
110.24
Positive
110.58
Positive
Market Momentum
0.56
Negative
65.25
Neutral
98.28
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 121.42, below the 50-day MA of 118.90, and below the 200-day MA of 110.58, indicating a bullish trend. The MACD of 0.56 indicates Negative momentum. The RSI at 65.25 is Neutral, neither overbought nor oversold. The STOCH value of 98.28 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $179.02B | 10.97 | 13.89% | 1.85% | -15.34% | 16.71% | |
71 Outperform | $307.25B | 12.28 | 11.88% | 4.14% | -9.54% | -22.46% | |
69 Neutral | $203.21B | 13.57 | 9.31% | 2.48% | -1.09% | 8.53% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $211.98B | 12.66 | 13.27% | 2.85% | 5.15% | 6.57% | |
61 Neutral | $261.23B | 13.89 | 11.78% | 1.80% | -4.37% | 26.41% | |
58 Neutral | $216.02B | 21.83 | 6.71% | 1.94% | -0.62% | 105.57% |
* Financial Sector Average
CMWAY
Commonwealth Bank of Australia
127.20
33.38
35.58%
C
Citigroup
123.49
63.46
105.72%
HSBC
HSBC Holdings
90.27
44.44
96.99%
MUFG
Mitsubishi UFJ
18.43
7.33
66.04%
WFC
Wells Fargo
84.66
22.89
37.06%
SAN
Banco Santander SA
12.20
6.10
100.13%
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.