COMMUNITY WEST BANCSHARES(NASDAQ:CWBC) stock Fundamental Analysis

Fundamental Rating

Overall CWBC gets a fundamental rating of 3 out of 10. We evaluated CWBC against 402 industry peers in the Banks industry. While CWBC seems to be doing ok healthwise, there are quite some concerns on its profitability. CWBC has a valuation in line with the averages, but it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

CWBC had positive earnings in the past year.

CWBC had a positive operating cash flow in the past year.

Of the past 5 years CWBC 4 years were profitable.

Of the past 5 years CWBC 4 years had a positive operating cash flow.

1.2 Ratios

The Return On Assets of CWBC (0.67%) is worse than 60.64% of its industry peers.

CWBC has a Return On Equity of 6.29%. This is in the lower half of the industry: CWBC underperforms 66.34% of its industry peers.

		Industry Rank	Sector Rank
ROA	0.67%
ROE	6.29%
ROIC	N/A

ROA(3y)1.01%

ROA(5y)0.95%

ROE(3y)10.38%

ROE(5y)10.02%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

CWBC's Profit Margin of 15.79% is on the low side compared to the rest of the industry. CWBC is outperformed by 71.78% of its industry peers.

CWBC's Profit Margin has declined in the last couple of years.

The Operating Margin and Gross Margin are not available for CWBC so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	15.79%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-8.1%

PM growth 5Y-5%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CWBC does not have a ROIC to compare to the WACC, probably because it is not profitable.

CWBC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

There is no outstanding debt for CWBC. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Altman-Z	N/A

ROIC/WACCN/A

WACC10.18%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CWBC have decreased strongly by -41.47% in the last year.

CWBC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.39% yearly.

EPS 1Y (TTM)-41.47%

EPS 3Y-18.08%

EPS 5Y-4.39%

EPS Q2Q%-28%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%59.2%

3.2 Future

The Earnings Per Share is expected to grow by 35.80% on average over the next years. This is a very strong growth

Based on estimates for the next years, CWBC will show a quite strong growth in Revenue. The Revenue will grow by 12.78% on average per year.

EPS Next Y64.65%

EPS Next 2Y35.8%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year19.5%

Revenue Next 2Y12.78%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 14.54, which indicates a correct valuation of CWBC.

Compared to the rest of the industry, the Price/Earnings ratio of CWBC indicates a slightly more expensive valuation: CWBC is more expensive than 64.36% of the companies listed in the same industry.

When comparing the Price/Earnings ratio of CWBC to the average of the S&P500 Index (29.35), we can say CWBC is valued rather cheaply.

CWBC is valuated reasonably with a Price/Forward Earnings ratio of 8.83.

Based on the Price/Forward Earnings ratio, CWBC is valued cheaper than 81.68% of the companies in the same industry.

Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, CWBC is valued rather cheaply.

		Industry Rank	Sector Rank
PE	14.54
Fwd PE	8.83

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of CWBC indicates a slightly more expensive valuation: CWBC is more expensive than 68.07% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	19.42
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

A more expensive valuation may be justified as CWBC's earnings are expected to grow with 35.80% in the coming years.

PEG (NY)0.22

PEG (5Y)N/A

EPS Next 2Y35.8%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

CWBC has a Yearly Dividend Yield of 2.59%. Purely for dividend investing, there may be better candidates out there.

Compared to an average industry Dividend Yield of 3.37, CWBC is paying slightly less dividend.

CWBC's Dividend Yield is comparable with the S&P500 average which is at 2.33.

		Industry Rank	Sector Rank
Dividend Yield	2.59%

5.2 History

On average, the dividend of CWBC grows each year by 9.15%, which is quite nice.

CWBC has been paying a dividend for at least 10 years, so it has a reliable track record.

CWBC has decreased its dividend recently.

Dividend Growth(5Y)9.15%

Div Incr Years1

Div Non Decr Years1

5.3 Sustainability

CWBC pays out 77.40% of its income as dividend. This is not a sustainable payout ratio.

CWBC's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP77.4%

EPS Next 2Y35.8%

EPS Next 3YN/A

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COMMUNITY WEST BANCSHARES

NASDAQ:CWBC (3/7/2025, 8:16:52 PM)

After market: 18.47 0 (0%)

18.47

-0.04 (-0.22%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupBanks

GICS IndustryBanks

Earnings (Last)01-23 2025-01-23/amc

Earnings (Next)04-16 2025-04-16/amc

Inst Owners50.51%

Inst Owner Change81.08%

Ins Owners9.77%

Ins Owner Change-1.01%

Market Cap350.38M

Analysts80

Price Target23.72 (28.42%)

Short Float %0.79%

Short Ratio2.69

Dividend

		Industry Rank	Sector Rank
Dividend Yield	2.59%

Yearly Dividend0.48

Dividend Growth(5Y)9.15%

DP77.4%

Div Incr Years1

Div Non Decr Years1

Ex-Date02-07 2025-02-07 (0.12)

Surprises & Revisions

EPS beat(2)0

Avg EPS beat(2)-2.07%

Min EPS beat(2)-4.02%

Max EPS beat(2)-0.11%

EPS beat(4)0

Avg EPS beat(4)-6.9%

Min EPS beat(4)-12.36%

Max EPS beat(4)-0.11%

EPS beat(8)3

Avg EPS beat(8)-1.98%

EPS beat(12)6

Avg EPS beat(12)3.55%

EPS beat(16)9

Avg EPS beat(16)7.02%

Revenue beat(2)0

Avg Revenue beat(2)-4.66%

Min Revenue beat(2)-5.17%

Max Revenue beat(2)-4.14%

Revenue beat(4)0

Avg Revenue beat(4)-16.37%

Min Revenue beat(4)-47.44%

Max Revenue beat(4)-4.14%

Revenue beat(8)0

Avg Revenue beat(8)-26.94%

Revenue beat(12)0

Avg Revenue beat(12)-30.58%

Revenue beat(16)0

Avg Revenue beat(16)-32.6%

PT rev (1m)0%

PT rev (3m)3.33%

EPS NQ rev (1m)0%

EPS NQ rev (3m)0%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)0%

Revenue NQ rev (3m)0%

Revenue NY rev (1m)0%

Revenue NY rev (3m)-0.82%

Valuation

		Industry Rank	Sector Rank
PE	14.54
Fwd PE	8.83
P/S	7.57
P/FCF	19.42
P/OCF	12.58
P/B	3.01
P/tB	3.01
EV/EBITDA	N/A

EPS(TTM)1.27

EY6.88%

EPS(NY)2.09

Fwd EY11.32%

FCF(TTM)0.95

FCFY5.15%

OCF(TTM)1.47

OCFY7.95%

SpS2.44

BVpS6.13

TBVpS6.13

PEG (NY)0.22

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	0.67%
ROE	6.29%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	15.79%
GM	N/A
FCFM	38.99%

ROA(3y)1.01%

ROA(5y)0.95%

ROE(3y)10.38%

ROE(5y)10.02%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-8.1%

PM growth 5Y-5%

GM growth 3YN/A

GM growth 5YN/A

F-Score5

Asset Turnover0.04

Health

		Industry Rank	Sector Rank
Debt/Equity	0
Debt/FCF	0
Debt/EBITDA	N/A
Cap/Depr	99.09%
Cap/Sales	21.19%
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	246.9%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score5

WACC10.18%

ROIC/WACCN/A

Cap/Depr(3y)53.27%

Cap/Depr(5y)90.26%

Cap/Sales(3y)7.38%

Cap/Sales(5y)5.73%

Profit Quality(3y)152.16%

Profit Quality(5y)158.49%

High Growth Momentum

Growth

EPS 1Y (TTM)-41.47%

EPS 3Y-18.08%

EPS 5Y-4.39%

EPS Q2Q%-28%

EPS Next Y64.65%

EPS Next 2Y35.8%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%59.2%

Revenue Next Year19.5%

Revenue Next 2Y12.78%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next YearN/A

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y221.1%

FCF growth 3Y5.2%

FCF growth 5Y4.1%

OCF growth 1Y375.29%

OCF growth 3Y20.7%

OCF growth 5Y11.28%

COMMUNITY WEST BANCSHARES (CWBC) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens