ASX:CBA

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Commonwealth Bank of Australia

Executive Summary

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. More Details


Snowflake Analysis

Flawless balance sheet average dividend payer.


Similar Companies

Share Price & News

How has Commonwealth Bank of Australia's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CBA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

CBA

2.1%

AU Banks

0.5%

AU Market


1 Year Return

-12.3%

CBA

-26.0%

AU Banks

-5.6%

AU Market

Return vs Industry: CBA exceeded the Australian Banks industry which returned -26.6% over the past year.

Return vs Market: CBA underperformed the Australian Market which returned -5.7% over the past year.


Shareholder returns

CBAIndustryMarket
7 Day2.0%2.1%0.5%
30 Day8.8%11.4%5.0%
90 Day-5.9%0.2%2.9%
1 Year-9.0%-12.3%-23.1%-26.0%-2.3%-5.6%
3 Year3.5%-11.0%-19.7%-31.8%12.4%-1.2%
5 Year17.1%-9.7%-5.2%-29.8%41.5%12.9%

Price Volatility Vs. Market

How volatile is Commonwealth Bank of Australia's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Commonwealth Bank of Australia undervalued compared to its fair value and its price relative to the market?

16.59x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBA (A$70.01) is trading above our estimate of fair value (A$49.8)

Significantly Below Fair Value: CBA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBA is poor value based on its PE Ratio (16.6x) compared to the AU Banks industry average (13.7x).

PE vs Market: CBA is good value based on its PE Ratio (16.6x) compared to the Australian market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: CBA is poor value based on its PEG Ratio (3.3x)


Price to Book Ratio

PB vs Industry: CBA is overvalued based on its PB Ratio (1.7x) compared to the AU Banks industry average (0.9x).


Next Steps

Future Growth

How is Commonwealth Bank of Australia forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBA's forecast earnings growth (5.1% per year) is above the savings rate (2.3%).

Earnings vs Market: CBA's earnings (5.1% per year) are forecast to grow slower than the Australian market (17.5% per year).

High Growth Earnings: CBA's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBA's revenue (3.6% per year) is forecast to grow slower than the Australian market (4.6% per year).

High Growth Revenue: CBA's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CBA's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

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

-2.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBA has high quality earnings.

Growing Profit Margin: CBA's current net profit margins (34.7%) are lower than last year (36.3%).


Past Earnings Growth Analysis

Earnings Trend: CBA's earnings have declined by 2.8% per year over the past 5 years.

Accelerating Growth: CBA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CBA had negative earnings growth (-7.8%) over the past year, making it difficult to compare to the Banks industry average (-26.9%).


Return on Equity

High ROE: CBA's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: CBA's Assets to Equity ratio (14.1x) is moderate.

Allowance for Bad Loans: CBA has a sufficient allowance for bad loans (234%).

Low Risk Liabilities: 73% of CBA's liabilities are made up of primarily low risk sources of funding.

Loan Level: CBA has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: CBA's Loans to Deposits ratio (113%) is appropriate.

Level of Bad Loans: CBA has an appropriate level of bad loans (0.3%).


Next Steps

Dividend

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

4.26%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CBA's dividend (4.26%) is higher than the bottom 25% of dividend payers in the Australian market (2.15%).

High Dividend: CBA's dividend (4.26%) is low compared to the top 25% of dividend payers in the Australian market (5.51%).


Stability and Growth of Payments

Stable Dividend: CBA's dividend payments have been volatile in the past 10 years.

Growing Dividend: CBA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.6%), CBA's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CBA's dividends in 3 years are forecast to be covered by earnings (72.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Matt Comyn (44 yo)

2.5yrs

Tenure

AU$5,682,176

Compensation

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 a ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD4.03M) is about average for companies of similar size in the Australian market ($USD3.40M).

Compensation vs Earnings: Matt's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Comyn
CEO, MD & Executive Director2.5yrsAU$5.68m0.0050%
A$ 6.1m
Alan Docherty
Chief Financial Officer2.42yrsAU$2.24m0.00044%
A$ 539.9k
Pascall Boillat
Chief Information Officer & Group Executive of Enterprise Services2yrsAU$5.01m0.00028%
A$ 343.5k
Sian Lewis
Group Executive of Human Resources2.17yrsAU$1.87m0.00034%
A$ 417.2k
Nigel Williams
Group Chief Risk Officer1.92yrsAU$3.36m0.0018%
A$ 2.2m
Vittoria June Shortt
Chief Executive & MD of ASB Bank Ltd.2.67yrsAU$1.83m0.0011%
A$ 1.3m
Adam Bennett
Group Executive of Business & Private Banking8.75yrsAU$3.46m0%
A$ 0
Mike Vacy-Lyle
Group Executive of Business & Private Bankingno dataAU$1.95mno data
Hanh Nguyen
Chief Representative and Director of Investment & Bankingno datano datano data
Melanie Kirk
Head of Investor Relationsno datano datano data
Carmel Mulhern
Group General Counsel and Group Executive of Legal & Governance0.75yrno datano data
Bryan Fitzgerald
Head of Communications and General Manager of Community11.42yrsno datano data

2.4yrs

Average Tenure

Experienced Management: CBA's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Comyn
CEO, MD & Executive Director2.5yrsAU$5.68m0.0050%
A$ 6.1m
Simon Moutter
Independent Non-Executive Director0.083yrno data0.00023%
A$ 282.2k
Catherine Livingstone
Independent Chairman of the Board3.75yrsAU$891.11k0.00048%
A$ 588.9k
Shirish Apte
Independent Non-Executive Director6.33yrsAU$335.70k0.00042%
A$ 515.3k
Paul O'Malley
Independent Non-Executive Director1.75yrsAU$313.55k0.00030%
A$ 368.1k
Robert Whitfield
Independent Non-Executive Director3.08yrsAU$330.28k0.00010%
A$ 122.7k
Anne Templeman-Jones
Independent Non-Executive Director2.58yrsAU$340.95k0.000090%
A$ 110.4k
Mary Padbury
Independent Non-Executive Director4.33yrsAU$284.81k0.000090%
A$ 110.4k
Genevieve Bell
Independent Non-Executive Director1.75yrsAU$250.89k0.000050%
A$ 61.3k

2.6yrs

Average Tenure

58yo

Average Age

Experienced Board: CBA's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CBA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Commonwealth Bank of Australia's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Commonwealth Bank of Australia
  • Ticker: CBA
  • Exchange: ASX
  • Founded: 1911
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: AU$122.693b
  • Shares outstanding: 1.77b
  • Website: https://www.commbank.com.au

Number of Employees


Location

  • Commonwealth Bank of Australia
  • Tower 1
  • Ground Floor
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBAU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
CBAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
CWWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
CBASWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1992
CBACHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
CMWA.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2008
CBAPDASX (Australian Securities Exchange)FRN SUB PERP AUD1000AUAUDOct 2014
CBAPEASX (Australian Securities Exchange)FRN SUB PERP AUD1000AUAUDMar 2016
CBAPHASX (Australian Securities Exchange)FRN PERP AUD5000AUAUDDec 2018
CBAPIASX (Australian Securities Exchange)FRN PERP AUD1000AUAUDNov 2019

Biography

Commonwealth Bank of Australia provides integrated financial services in Australia, New Zealand, and internationally. It offers retail, premium, business, and institutional banking; and funds management, i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/19 10:42
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.