Loading...

Commonwealth Bank of Australia

ASX:CBA
Snowflake Description

Flawless balance sheet average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CBA
ASX
A$144B
Market Cap
  1. Home
  2. AU
  3. Banks
Company description

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. The last earnings update was 163 days ago. More info.


Add to Portfolio Compare Print
CBA Share Price and Events
7 Day Returns
0.2%
ASX:CBA
-0.3%
AU Banks
-0.1%
AU Market
1 Year Returns
7.9%
ASX:CBA
-1.1%
AU Banks
5.2%
AU Market
CBA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Commonwealth Bank of Australia (CBA) 0.2% -0.1% 10.9% 7.9% 5.6% -0.8%
AU Banks -0.3% -0.4% 6.2% -1.1% 1.8% -13.7%
AU Market -0.1% 2.4% 6.5% 5.2% 19.8% 11.8%
1 Year Return vs Industry and Market
  • CBA outperformed the Banks industry which returned -1.1% over the past year.
  • CBA outperformed the Market in Australia which returned 5.2% over the past year.
Price Volatility
CBA
Industry
5yr Volatility vs Market

CBA Value

 Is Commonwealth Bank of Australia undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Commonwealth Bank of Australia to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Commonwealth Bank of Australia.

ASX:CBA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= A$39.65 * 13.3%
A$5.29
Book Value of Equity per Share Weighted future Book Value estimates from 7 analysts. A$39.65
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:CBA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.595 (1 + (1- 30%) (179.79%))
1.23
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (1.23 * 5.96%)
9.64%

Discounted Cash Flow Calculation for ASX:CBA using Excess Returns Model Model

The calculations below outline how an intrinsic value for Commonwealth Bank of Australia is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

ASX:CBA Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.3% – 9.64%) * A$39.65)
A$1.47
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= A$1.47 / (9.64% - 2.31%)
A$20.02
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= A$39.65 + A$20.02
A$59.67
ASX:CBA Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$59.67
Current discount Discount to share price of A$81.38
= -1 x (A$81.38 - A$59.67) / A$59.67
-36.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Commonwealth Bank of Australia is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Commonwealth Bank of Australia's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Commonwealth Bank of Australia's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:CBA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$5.23
ASX:CBA Share Price ** ASX (2019-07-18) in AUD A$81.38
Australia Banks Industry PE Ratio Median Figure of 7 Publicly-Listed Banks Companies 13.43x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.19x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Commonwealth Bank of Australia.

ASX:CBA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:CBA Share Price ÷ EPS (both in AUD)

= 81.38 ÷ 5.23

15.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Commonwealth Bank of Australia is overvalued based on earnings compared to the AU Banks industry average.
  • Commonwealth Bank of Australia is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Commonwealth Bank of Australia's expected growth come at a high price?
Raw Data
ASX:CBA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 15.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts
3.2%per year
Australia Banks Industry PEG Ratio Median Figure of 7 Publicly-Listed Banks Companies 3.88x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.34x

*Line of best fit is calculated by linear regression .

ASX:CBA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 15.56x ÷ 3.2%

4.93x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Commonwealth Bank of Australia is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Commonwealth Bank of Australia's assets?
Raw Data
ASX:CBA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$38.47
ASX:CBA Share Price * ASX (2019-07-18) in AUD A$81.38
Australia Banks Industry PB Ratio Median Figure of 7 Publicly-Listed Banks Companies 1.29x
Australia Market PB Ratio Median Figure of 1,693 Publicly-Listed Companies 1.68x
ASX:CBA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:CBA Share Price ÷ Book Value per Share (both in AUD)

= 81.38 ÷ 38.47

2.12x

* Primary Listing of Commonwealth Bank of Australia.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Commonwealth Bank of Australia is overvalued based on assets compared to the AU Banks industry average.
X
Value checks
We assess Commonwealth Bank of Australia's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
  5. Commonwealth Bank of Australia has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CBA Future Performance

 How is Commonwealth Bank of Australia expected to perform in the next 1 to 3 years based on estimates from 12 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Commonwealth Bank of Australia expected to grow at an attractive rate?
  • Commonwealth Bank of Australia's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Commonwealth Bank of Australia's earnings growth is positive but not above the Australia market average.
  • Commonwealth Bank of Australia's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:CBA Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:CBA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 12 Analysts 3.2%
ASX:CBA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 12 Analysts 1.2%
Australia Banks Industry Earnings Growth Rate Market Cap Weighted Average 5.8%
Australia Banks Industry Revenue Growth Rate Market Cap Weighted Average 2.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 7.3%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:CBA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:CBA Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30
2021-06-30 25,228 9,729 11
2020-06-30 24,935 10,114 12
2019-06-30 24,669 9,171 12
ASX:CBA Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 24,027 12,105 9,192
2018-09-30 24,424 7,045 9,284
2018-06-30 24,821 1,985 9,375
2017-12-31 24,425 -32,642 9,689
2017-09-30 24,358 -36,635 9,728
2017-06-30 24,291 -40,628 9,766
2017-03-31 24,245 -43,084 9,643
2016-12-31 23,726 -45,539 9,417
2016-09-30 23,524 -43,942 9,295
2016-06-30 22,361 -42,344 8,895
2016-03-31 23,265 9,122

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Commonwealth Bank of Australia's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Commonwealth Bank of Australia's revenue is expected to grow by 1.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:CBA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (6 months ago) See Below
Future Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below

All data from Commonwealth Bank of Australia Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CBA Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30 5.33 5.74 4.85 8.00
2020-06-30 5.48 6.33 4.96 8.00
2019-06-30 5.36 7.44 4.66 7.00
ASX:CBA Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 5.23
2018-09-30 5.30
2018-06-30 5.37
2017-12-31 5.60
2017-09-30 5.64
2017-06-30 5.68
2017-03-31 5.62
2016-12-31 5.50
2016-09-30 5.46
2016-06-30 5.26
2016-03-31 5.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Commonwealth Bank of Australia is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Commonwealth Bank of Australia's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Commonwealth Bank of Australia has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CBA Past Performance

  How has Commonwealth Bank of Australia performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Commonwealth Bank of Australia's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Commonwealth Bank of Australia's year on year earnings growth rate has been positive over the past 5 years.
  • Commonwealth Bank of Australia's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Commonwealth Bank of Australia's 1-year earnings growth is negative, it can't be compared to the AU Banks industry average.
Earnings and Revenue History
Commonwealth Bank of Australia's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Commonwealth Bank of Australia Company Filings, last reported 6 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:CBA Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 24,027.00 9,192.00 9,873.00
2018-09-30 24,424.00 9,283.50 9,810.00
2018-06-30 24,821.00 9,375.00 9,747.00
2017-12-31 24,425.00 9,689.00 9,201.00
2017-09-30 24,358.00 9,727.50 9,188.50
2017-06-30 24,291.00 9,766.00 9,176.00
2017-03-31 24,244.50 9,642.50 9,282.00
2016-12-31 23,726.00 9,417.00 9,157.00
2016-09-30 23,524.00 9,295.00 9,247.50
2016-06-30 22,361.00 8,895.00 8,922.00
2016-03-31 23,264.50 9,122.00 9,304.00
2015-12-31 23,207.00 9,091.00 9,250.00
2015-09-30 22,943.50 9,051.00 9,116.00
2015-06-30 22,680.00 9,001.00 8,992.00
2015-03-31 22,425.00 8,962.00 8,873.50
2014-12-31 22,170.00 8,913.00 8,765.00
2014-09-30 21,870.00 8,749.50 8,610.50
2014-06-30 21,570.00 8,586.00 8,456.00
2014-03-31 21,191.50 8,348.50 12,477.00
2013-12-31 20,813.00 8,191.00 186.00
2013-09-30 20,271.50 7,904.50 93.00
2013-06-30 19,730.00 7,578.00 8,156.00
2013-03-31 18,865.00 7,262.50 3,966.00
2012-12-31 19,348.00 7,055.00 7,808.00
2012-09-30 19,321.50 7,051.50 7,691.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Commonwealth Bank of Australia has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Commonwealth Bank of Australia used its assets more efficiently than the AU Banks industry average last year based on Return on Assets.
  • Unable to establish if Commonwealth Bank of Australia improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Commonwealth Bank of Australia's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Commonwealth Bank of Australia has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CBA Health

 How is Commonwealth Bank of Australia's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Commonwealth Bank of Australia's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Commonwealth Bank of Australia Company Filings, last reported 6 months ago.

ASX:CBA Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 68,578.00 258,505.00 84,339.00
2018-09-30 68,578.00 258,505.00 84,339.00
2018-06-30 67,860.00 259,752.00 109,816.00
2017-12-31 66,091.00 246,993.00 83,099.00
2017-09-30 66,091.00 246,993.00 83,099.00
2017-06-30 63,660.00 261,984.00 120,093.00
2017-03-31 63,716.00 261,984.00 120,093.00
2016-12-31 61,812.00 277,668.00 102,010.00
2016-09-30 61,812.00 277,668.00 102,010.00
2016-06-30 60,564.00 264,492.00 115,390.00
2016-03-31 60,564.00 264,492.00 115,390.00
2015-12-31 59,847.00 259,546.00 92,752.00
2015-09-30 59,847.00 259,546.00 92,752.00
2015-06-30 52,993.00 253,124.00 118,545.00
2015-03-31 52,993.00 253,124.00 118,545.00
2014-12-31 51,031.00 251,005.00 106,782.00
2014-09-30 51,031.00 251,005.00 106,782.00
2014-06-30 49,348.00 215,574.00 85,000.00
2014-03-31 49,348.00 215,574.00 85,000.00
2013-12-31 47,037.00 221,670.00 79,056.00
2013-09-30 47,037.00 221,670.00 79,056.00
2013-06-30 45,537.00 206,997.00 85,591.00
2013-03-31 45,537.00 206,997.00 85,591.00
2012-12-31 43,299.00 194,421.00 75,317.00
2012-09-30 43,299.00 194,421.00 75,317.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Commonwealth Bank of Australia has an acceptable proportion of non-loan assets held.
  • Commonwealth Bank of Australia's liabilities are made up of primarily low risk sources of funding.
  • Loans at Commonwealth Bank of Australia are broadly funded by customer deposits.
  • Commonwealth Bank of Australia's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Commonwealth Bank of Australia has a sufficient allowance for bad loans.
  • Commonwealth Bank of Australia has an acceptable level of bad loans (less than 2%).
X
Financial health checks
We assess Commonwealth Bank of Australia's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Commonwealth Bank of Australia has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CBA Dividends

 What is Commonwealth Bank of Australia's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.3%
Current annual income from Commonwealth Bank of Australia dividends. Estimated to be 5.33% next year.
If you bought A$2,000 of Commonwealth Bank of Australia shares you are expected to receive A$106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Commonwealth Bank of Australia's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.51%).
  • Commonwealth Bank of Australia's dividend is below the markets top 25% of dividend payers in Australia (5.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:CBA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 12 Analyst Estimates (S&P Global) See Below
Australia Banks Industry Average Dividend Yield Market Cap Weighted Average of 6 Stocks 6%
Australia Market Average Dividend Yield Market Cap Weighted Average of 415 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.5%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:CBA Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30 4.32 12.00
2020-06-30 4.35 13.00
2019-06-30 4.31 13.00
ASX:CBA Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-02-05 4.310 5.712
2018-08-07 4.310 6.106
2018-02-06 4.300 5.877
2017-08-14 4.290 5.467
2017-08-08 4.290 5.308
2017-02-14 4.210 5.057
2016-08-09 4.200 5.467
2015-08-17 4.200 5.524
2015-08-11 4.200 5.141
2015-04-01 4.160 4.819
2014-08-26 4.010 4.790
2014-08-18 4.010 4.979
2014-08-12 4.010 4.937
2014-03-10 3.830 4.804
2013-08-13 3.640 4.866
2012-09-12 3.340 5.184
2012-09-03 3.340 6.112
2012-08-20 3.340 6.084
2012-08-14 3.340 5.913
2012-02-15 3.250 6.319
2011-08-10 3.200 6.660
2011-02-09 3.020 5.892
2010-12-02 3.400 6.640
2010-09-17 3.400 6.785
2010-08-11 3.400 6.648
2010-02-10 2.350 4.395
2009-08-12 2.280 4.420
2009-02-11 2.660 7.530
2008-08-13 2.660 7.707

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Commonwealth Bank of Australia's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.2x coverage).
X
Income/ dividend checks
We assess Commonwealth Bank of Australia's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Commonwealth Bank of Australia afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Commonwealth Bank of Australia has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CBA Management

 What is the CEO of Commonwealth Bank of Australia's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Matt Comyn
COMPENSATION A$2,959,287
AGE 43
TENURE AS CEO 1.3 years
CEO Bio

Mr. Matthew Comyn, also known as Matt, has been Managing Director, Chief Executive Officer and Executive Director at Commonwealth Bank of Australia since April 9, 2018 and served as its Managing Director and Chief Executive Officer of Commonwealth Bank of Australia's group from April 09, 2018 to June 30, 2018.. He served as the Group Executive Retail Banking Services at Commonwealth Bank of Australia since July 01, 2017 until April 08, 2018. Mr. Comyn was Head of Retail Banking Services/Group Executive, Retail Banking Services at Commonwealth Bank of Australia since 2012. He joined Commonwealth Bank of Australia in 1999 and left in 2010, where he held a number of senior leadership roles. Mr. Comyn served as the Chief Executive Officer of Australian Wealth Management Business at Morgan Stanley Smith Barney LLC. He served as the Managing Director of Commonwealth Securities, a unit Commonwealth Bank of Australia. He has been with Commonwealth Bank Group since 1999 and runs the its Local Business Banking business, since 2010. From 2006 to 2010, Mr. Comyn served as Managing Director of CommSec and he played a leading role in the development and implementation of the Group's CommSee banking platform. He has experience across business, institutional and retail banking and in wealth management. He was a former Non-Executive Director of AHL Holdings Pty Ltd (Aussie Home Loans). His Qualifications: BAv (UNSW), MCom (UNSW), EMBA (USyd), GMP (HBS). He holds an Executive MBA from Sydney University, a Master’s degree in Commerce, majoring in finance and a Bachelor’s degree in Aviation, both from the University of New South Wales.

CEO Compensation
  • Matt's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.
  • Matt's remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the Commonwealth Bank of Australia management team in years:

1.3
Average Tenure
  • The average tenure for the Commonwealth Bank of Australia management team is less than 2 years, this suggests a new team.
Management Team

Matt Comyn

TITLE
CEO, MD & Executive Director
COMPENSATION
A$3M
AGE
43
TENURE
1.3 yrs

Alan Docherty

TITLE
Chief Financial Officer
COMPENSATION
A$820K
TENURE
1.2 yrs

David Keith Cohen

TITLE
Deputy CEO
COMPENSATION
A$3M
TENURE
0.1 yrs

Michael Venter

TITLE
Chief Operating Officer of Wealth Management
COMPENSATION
A$2M
TENURE
7.9 yrs

Vittoria June Shortt

TITLE
Chief Executive & MD of ASB Bank Ltd.
COMPENSATION
A$3M
TENURE
1.4 yrs

Adam Bennett

TITLE
Group Executive of Business & Private Banking
COMPENSATION
A$2M
TENURE
7.5 yrs

Angus Sullivan

TITLE
Group Executive of Retail Banking Services
COMPENSATION
A$639K
TENURE
1.3 yrs

Hanh Nguyen

TITLE
Chief Representative and Director of Investment & Banking

Pascall Boillat

TITLE
Chief Information Officer & Group Executive of Enterprise Services
TENURE
0.8 yrs

Melanie Kirk

TITLE
Head of Investor Relations
Board of Directors Tenure

Average tenure and age of the Commonwealth Bank of Australia board of directors in years:

2.2
Average Tenure
58
Average Age
  • The average tenure for the Commonwealth Bank of Australia board of directors is less than 3 years, this suggests a new board.
Board of Directors

Catherine Livingstone

TITLE
Chairman of the Board
COMPENSATION
A$752K
AGE
63
TENURE
2.5 yrs

Matt Comyn

TITLE
CEO, MD & Executive Director
COMPENSATION
A$3M
AGE
43
TENURE
1.3 yrs

Shirish Apte

TITLE
Independent Non-Executive Director
COMPENSATION
A$347K
AGE
66
TENURE
5.1 yrs

David Higgins

TITLE
Independent Non-Executive Director
COMPENSATION
A$267K
AGE
64
TENURE
4.8 yrs

Anne Templeman-Jones

TITLE
Independent Non-Executive Director
COMPENSATION
A$82K
AGE
57
TENURE
1.3 yrs

Wendy Stops

TITLE
Independent Non-Executive Director
COMPENSATION
A$245K
AGE
58
TENURE
4.3 yrs

Mary Padbury

TITLE
Independent Non-Executive Director
COMPENSATION
A$276K
AGE
60
TENURE
3.1 yrs

Rob Whitfield

TITLE
Independent Non-Executive Director
COMPENSATION
A$228K
AGE
55
TENURE
1.8 yrs

Paul O'Malley

TITLE
Independent Non-Executive Director
AGE
55
TENURE
0.5 yrs

Genevieve Bell

TITLE
Independent Non-Executive Director
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Commonwealth Bank of Australia individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
30. May 19 Buy Anne Templeman-Jones Individual 27. May 19 27. May 19 192 A$78.09 A$14,993
24. May 19 Buy Genevieve Bell Individual 17. May 19 17. May 19 141 A$73.13 A$10,311
23. May 19 Buy Mary Padbury Individual 17. May 19 17. May 19 94 A$73.13 A$6,874
23. May 19 Buy Robert Whitfield Individual 17. May 19 17. May 19 123 A$73.13 A$8,995
23. May 19 Buy Anne Templeman-Jones Individual 17. May 19 17. May 19 110 A$73.13 A$8,044
15. Feb 19 Buy Catherine Livingstone Individual 14. Feb 19 14. Feb 19 1,000 A$70.63 A$70,630
15. Feb 19 Buy Paul O'Malley Individual 14. Feb 19 14. Feb 19 500 A$70.71 A$35,355
16. Nov 18 Buy Anne Templeman-Jones Individual 09. Nov 18 09. Nov 18 251 A$70.75 A$17,758
16. Nov 18 Buy Mary Padbury Individual 09. Nov 18 09. Nov 18 241 A$70.75 A$17,051
16. Nov 18 Buy Robert Whitfield Individual 09. Nov 18 09. Nov 18 287 A$70.75 A$20,305
24. Jul 18 Sell The Vanguard Group, Inc. Company 20. Mar 18 20. Jul 18 -449,727 A$76.10 A$-34,189,062
24. Jul 18 Buy The Vanguard Group, Inc. Company 20. Mar 18 20. Jul 18 4,391,900 A$76.30 A$334,346,999
X
Management checks
We assess Commonwealth Bank of Australia's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Commonwealth Bank of Australia has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CBA News

Simply Wall St News

Commonwealth Bank of Australia (ASX:CBA): Will The Growth Last?

Based on Commonwealth Bank of Australia's (ASX:CBA) earnings update in June 2018,. … with profits predicted to increase by 9.86% next year … the past 5-year average growth rate of 5.96%

Simply Wall St -

Commonwealth Bank of Australia (ASX:CBA): Ex-Dividend Is In 2 Days, Should You Buy?

Commonwealth Bank of Australia (ASX:CBA) will be distributing its dividend of AU$2.31 per share on the 28 September 2018, and will start trading ex-dividend in 2 days time on the 15 August 2018. … Below, I will explain how holding Commonwealth Bank of Australia can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

Will Commonwealth Bank of Australia's (ASX:CBA) Earnings Grow In The Years Ahead?

The latest earnings update Commonwealth Bank of Australia (ASX:CBA) released in June 2018a

Simply Wall St -

What Do Commonwealth Bank of Australia (ASX:CBA) Insiders Know That You Don't?

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. … some insider buying over the past three months, with insiders investing in. … Generally, insiders buying more shares in their own firm sends a bullish signal.

Simply Wall St -

Commonwealth Bank of Australia (ASX:CBA) Is Trading At A 10.06% Discount Right Now

Given that these companies adhere to a different set of rules relative to other companies, their cash flows should also be valued differently. … For instance, banks must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

Does Commonwealth Bank of Australia (ASX:CBA) Have A Place In Your Portfolio?

There is a lot to be liked about Commonwealth Bank of Australia (ASX:CBA) as an income stock, over the past 10 years it has returned an average of 6.00% per year. … The company currently pays out a dividend yield of 5.90% to shareholders, making it a relatively attractive dividend stock. … Does Commonwealth Bank of Australia tick all the boxes of a great dividend stock?

Simply Wall St -

Is Commonwealth Bank of Australia's (ASX:CBA) 15.15% ROE Strong Compared To Its Industry?

and looking to gauge the potential return on investment in Commonwealth Bank of Australia (ASX:CBA). … With an ROE of 15.15%, Commonwealth Bank of Australia (ASX:CBA) outpaced its own industry which delivered a less exciting 11.83% over the past year. … Sustainability can be gauged by a company’s financial leverage – the more debt it has, the higher ROE is pumped up in the short term, at the expense of long term interest payment burden

Simply Wall St -

Should You Sell Commonwealth Bank of Australia (ASX:CBA) At This PE Ratio?

I am writing today to help inform people who are new to the stock market. … and want to begin learning the link between Commonwealth Bank of Australia (ASX:CBA)’s fundamentals and stock market performance. … Commonwealth Bank of Australia (ASX:CBA) is trading with a trailing P/E of 12.5x, which is higher than the industry average of 11.8x.

Simply Wall St -

Commonwealth Bank of Australia (ASX:CBA): A Fundamentally Attractive Investment

Commonwealth Bank of Australia (ASX:CBA) is a company with exceptional fundamental characteristics. … Upon building up an investment case for a stock, we should look at various aspects. … For those interested in digger a bit deeper into my commentary,

Simply Wall St -

Are You Considering All The Risks For Commonwealth Bank of Australia’s (ASX:CBA)?

A borrower’s demand for, and ability to repay, loans is driven by economic growth which directly impacts the level of risk Commonwealth Bank of Australia takes on. … Since the level of risky assets held by a bank impacts its cash flow and therefore the attractiveness of its stock as an investment, I will take you through three metrics that are insightful proxies for risk. … By nature, Commonwealth Bank of Australia is exposed to risky assets by lending to borrowers who may not be able to repay their loans.

Simply Wall St -

CBA Company Info

Description

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. The company offers retail, premium, business, and institutional banking; and funds management, superannuation, insurance, investment, and share-broking products and services. It operates through Retail Banking Services, Business and Private Banking, Institutional Banking and Markets, Wealth Management, New Zealand, Bankwest, and IFS and Other Divisions. The company provides transaction and savings accounts, term deposits, personal and business loans, credit cards, insurance products, international payment, and private banking services, as well as home loans. It also offers financial planning and share trading services, managed funds, investment growth bonds, property investments, and self-managed super funds; allocated pensions and guaranteed annuities; and merchant, international and foreign exchange, insurance and risk management services. In addition, the company provides debt raising, financial and commodities price risk management, and transactional banking services; asset management, platform administration, and financial advice services. It operates 1,267 branches; and 4,253 ATMs in Australia. Commonwealth Bank of Australia was founded in 1912 and is headquartered in Sydney, Australia.

Details
Name: Commonwealth Bank of Australia
CBA
Exchange: ASX
Founded: 1912
A$143,779,329,200
1,768,068,485
Website: http://www.commbank.com.au
Address: Commonwealth Bank of Australia
Tower 1,
Ground Floor,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX CBA Ordinary Shares Australian Securities Exchange AU AUD 02. Jan 1992
OTCPK CBAU.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB CWW Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
SWX CBA Ordinary Shares SIX Swiss Exchange CH CHF 02. Jan 1992
OTCPK CMWA.Y SPONSORED ADR Pink Sheets LLC US USD 18. Jun 2008
ASX CBAPD FRN SUB PERP AUD100 Australian Securities Exchange AU AUD 02. Oct 2014
ASX CBAPH FRN PERP AUD100 Australian Securities Exchange AU AUD 20. Dec 2018
ASX CBAPE FRN CNV SUB PERP AUD1000 Australian Securities Exchange AU AUD 31. Mar 2016
Number of employees
Current staff
Staff numbers
42,519
Commonwealth Bank of Australia employees.
Industry
Diversified Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/18 10:32
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/02/05
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.