Want to see CMWAY full AI Analyst Report?
Top Page
Commonwealth Bank of Australia
(OTC:CMWAY)
Select Model
Select Model
Rating:58Neutral
Price Target:
$107.00
â–¼(-4.77% Downside)
Action:Reiterated
Date:08/17/26
The score is primarily held back by financial quality concerns—negative operating/free cash flow and higher leverage—despite solid reported earnings. The earnings call adds support through strong funding, capital, and clear FY27 targets, but rising credit stress and margin/cost pressures temper the outlook. Technical signals and valuation are broadly neutral, offering neither strong confirmation nor a clear discount.
Positive Factors
Broad-based franchise growth
Growth across home lending, business lending, consumer finance, and both household and business deposits indicates broad franchise relevance rather than reliance on one product. This supports customer retention, cross-selling potential, and durable scale advantages in Australian banking.
Negative Factors
Higher leverage and weak cash generation
Higher leverage increases sensitivity to funding and credit conditions, while repeated negative operating and free cash flow limits financial flexibility despite reported profits. Together, these factors could constrain capital allocation and reduce resilience during a weaker banking cycle.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based franchise growth
Growth across home lending, business lending, consumer finance, and both household and business deposits indicates broad franchise relevance rather than reliance on one product. This supports customer retention, cross-selling potential, and durable scale advantages in Australian banking.
Read all positive factors
Commonwealth Bank of Australia (CMWAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$175.34B
Dividend Yield3.4%
Average Volume (3M)5.27K
Price to Earnings (P/E)23.1
Beta (1Y)0.47
Revenue Growth5.68%
EPS Growth12.60%
CountryUS
Employees51,714
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)6.48
Shares Outstanding1,673,462,400
10 Day Avg. Volume0
30 Day Avg. Volume5,270
Financial Highlights & Ratios
PEG Ratio3.19
Price to Book (P/B)3.51
Price to Sales (P/S)9.42
P/FCF Ratio-294.19
Enterprise Value/Market Cap2.12
Enterprise Value/Revenue5.26
Enterprise Value/Gross Profit12.56
Enterprise Value/Ebitda22.96
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 (CBA) functions as a comprehensive financial services provider, extending its operations across Australia, New Zealand, and global markets. Its organizational structure is defined by key segments: Retail Banking Serv...
How the Company Makes Money
CBA makes money mainly by earning interest and fees from providing banking and financial services.
1) Net interest income (lending vs. funding spread)
- The largest driver of bank earnings is typically the difference between (a) interest earned o...
Commonwealth Bank of Australia Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Feb 10, 2027
Earnings Call Sentiment Positive
The call highlighted a strong full-year operational and financial performance with broad franchise growth, robust deposit funding, solid capital metrics and tangible progress on technology and AI-driven productivity. These positives were balanced by second-half revenue moderation, competitive pressure on mortgage margins, rising arrears and higher operating and technology costs. Management emphasized disciplined execution, strong provisioning buffers (total provisions A$6.5bn) and flexibility on capital and spend, positioning the bank to navigate a more challenging FY27.Positive Updates
Strong Profit Growth
Cash net profit after tax grew ~7% (cash profit $11.0bn vs statutory $10.9bn), statutory profit up 8%, and cash EPS increased by $0.44 year-on-year.
Negative Updates
Second Half Softening and Revenue Mix Headwinds
Revenue momentum moderated in H2: sequential revenue growth 1.2% (2.9% after day-count adj). Other operating income softened due to weaker retail FX and lower trading income; markets income moderated in H2.
Read all updates
Q4-2026 Updates
Positive
Negative
Strong Profit Growth
Cash net profit after tax grew ~7% (cash profit $11.0bn vs statutory $10.9bn), statutory profit up 8%, and cash EPS increased by $0.44 year-on-year.
Read all positive updates
Company Guidance
The management provided clear FY27 guidance and targets: mortgage credit growth was guided to roughly 4–6% (management now favouring about 4–5%), an effective tax rate of ~30% is expected, and gross benefits from AI are forecast to exceed AI investment next year (annual tech cash spend to be held at ~$2.4bn); they will measure progress by customer engagement, service quality and resolution times, losses prevented, delivery speed, unit costs, realized financial benefits and risk‑adjusted earnings. Financial-position and risk metrics cited as the starting point include CET1 of 12.0%, customer deposit funding of 79% (customer deposits grew 8% y/y), $191bn of liquid assets, weighted‑average long‑term funding maturity of 5.2 years, total provisions of $6.5bn (≈$2.7bn above the central economic scenario) and a loan loss expense of $788m (8bps); leading credit indicators were noted (home loan arrears 73bps, up 10bps; personal loan arrears up 31bps; troublesome/non‑performing exposures ~0.94%). Operational and earnings momentum targets reflect last year’s performance — cash profit ~$11.0bn (+7.1%), statutory profit $10.9bn, operating income +6.2%, operating expenses +5.6%, pre‑provision profit +6.5% — and capital return settings (full‑year dividend $5.05, final $2.70, payout ~77%, DRP neutralized) will be managed against these outcomes.Commonwealth Bank of Australia Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
55
Neutral
Cash Flow
28
Negative
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 29.36B | 69.74B | 26.12B | 26.33B | 25.14B |
| Gross Profit | 29.91B | 28.66B | 27.31B | 27.07B | 23.29B |
| EBITDA | 15.81B | 15.95B | -4.00M | 15.35B | 15.11B |
| Net Income | 10.87B | 10.12B | 9.39B | 10.00B | 10.69B |
Balance Sheet | |||||
| Total Assets | 1.45T | 1.35T | 1.25T | 1.25T | 1.22T |
| Cash, Cash Equivalents and Short-Term Investments | 137.34B | 55.50B | 47.32B | 108.01B | 120.31B |
| Total Debt | 308.22B | 216.23B | 136.15B | 181.67B | 188.00B |
| Total Liabilities | 1.37T | 1.28T | 1.18T | 1.18T | 1.14T |
| Stockholders Equity | 78.71B | 78.78B | 73.09B | 71.63B | 72.83B |
Cash Flow | |||||
| Free Cash Flow | -940.00M | -2.46B | -48.57B | 6.78B | 20.68B |
| Operating Cash Flow | -173.13M | -825.00M | -48.16B | 8.35B | 21.66B |
| Investing Cash Flow | -100.27B | -329.00M | -1.11B | -15.74B | -96.76B |
| Financing Cash Flow | 96.73B | 7.59B | -10.71B | -5.62B | 106.72B |
Commonwealth Bank of Australia Technical Analysis
Negative
112.36
Price Trends
112.59
Negative
113.51
Negative
114.31
Negative
Market Momentum
-2.23
Negative
33.03
Neutral
45.65
Neutral
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 112.36 is above the 20-day moving average (MA) of 106.79, below the 50-day MA of 112.59, and below the 200-day MA of 114.31, indicating a bearish trend. The MACD of -2.23 indicates Negative momentum. The RSI at 33.03 is Neutral, neither overbought nor oversold. The STOCH value of 45.65 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
81 Outperform | $144.59B | 11.93 | 19.31% | 4.12% | -2.29% | 14.33% | |
73 Outperform | $94.65B | 12.79 | 13.38% | 4.55% | 12.60% | 24.01% | |
72 Outperform | $319.52B | 12.96 | 13.03% | 4.04% | -5.19% | 39.48% | |
70 Outperform | $242.71B | 11.71 | 12.57% | 2.26% | 4.24% | 18.04% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $200.15B | 10.73 | 15.48% | 2.25% | 16.84% | 33.67% | |
58 Neutral | $175.34B | 23.12 | 13.94% | 3.40% | 5.68% | 12.60% |
* Financial Sector Average
CMWAY
Commonwealth Bank of Australia
103.13
-3.75
-3.51%
BBVA
Banco Bilbao
26.17
8.83
50.92%
HSBC
HSBC Holdings
92.61
29.58
46.93%
ING
ING Groep
33.43
10.44
45.39%
WFC
Wells Fargo
82.03
6.07
7.99%
SAN
Banco Santander SA
13.48
3.91
40.80%
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.