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COMMUNITY WEST BANCSHARES (CWBC) Stock Fundamental Analysis

NASDAQ:CWBC - Nasdaq - US2039371073 - Common Stock - Currency: USD

19.38  -0.03 (-0.15%)

After market: 19.38 0 (0%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to CWBC. CWBC was compared to 405 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 correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year CWBC was profitable.
CWBC had a positive operating cash flow in the past year.
CWBC had positive earnings in each of the past 5 years.
Each year in the past 5 years CWBC had a positive operating cash flow.
CWBC Yearly Net Income VS EBIT VS OCF VS FCFCWBC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M 25M

1.2 Ratios

Looking at the Return On Assets, with a value of 0.67%, CWBC is in line with its industry, outperforming 40.95% of the companies in the same industry.
CWBC has a Return On Equity of 6.29%. This is in the lower half of the industry: CWBC underperforms 65.33% of its industry peers.
Industry RankSector 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
CWBC Yearly ROA, ROE, ROICCWBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6 8 10

1.3 Margins

The Profit Margin of CWBC (15.79%) is worse than 72.11% of its industry peers.
CWBC's Profit Margin has declined in the last couple of years.
CWBC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
CWBC Yearly Profit, Operating, Gross MarginsCWBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20 25

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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 more shares outstanding than it did 1 year ago.
CWBC has more shares outstanding than it did 5 years ago.
CWBC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
CWBC Yearly Shares OutstandingCWBC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2M 4M 6M 8M
CWBC Yearly Total Debt VS Total AssetsCWBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

2.2 Solvency

CWBC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z N/A
ROIC/WACCN/A
WACC10.31%
CWBC Yearly LT Debt VS Equity VS FCFCWBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
CWBC Yearly Current Assets VS Current LiabilitesCWBC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2M 4M 6M

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3. Growth

3.1 Past

The earnings per share for CWBC have decreased strongly by -39.22% in the last year.
Measured over the past 5 years, CWBC shows a small growth in Earnings Per Share. The EPS has been growing by 7.52% on average per year.
CWBC shows a decrease in Revenue. In the last year, the revenue decreased by -7.06%.
The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)-39.22%
EPS 3Y10.23%
EPS 5Y7.52%
EPS Q2Q%-66.67%
Revenue 1Y (TTM)-7.06%
Revenue growth 3Y4.54%
Revenue growth 5Y4.99%
Sales Q2Q%47.19%

3.2 Future

The Earnings Per Share is expected to grow by 1.54% on average over the next years.
Based on estimates for the next years, CWBC will show a quite strong growth in Revenue. The Revenue will grow by 19.71% on average per year.
EPS Next Y-72.85%
EPS Next 2Y-1.74%
EPS Next 3Y1.54%
EPS Next 5YN/A
Revenue Next Year37.55%
Revenue Next 2Y27.24%
Revenue Next 3Y19.71%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
CWBC Yearly Revenue VS EstimatesCWBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M
CWBC Yearly EPS VS EstimatesCWBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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4. Valuation

4.1 Price/Earnings Ratio

CWBC is valuated correctly with a Price/Earnings ratio of 13.74.
Compared to the rest of the industry, the Price/Earnings ratio of CWBC is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 28.42. CWBC is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 9.25, the valuation of CWBC can be described as reasonable.
Based on the Price/Forward Earnings ratio, CWBC is valued cheaply inside the industry as 83.17% of the companies are valued more expensively.
CWBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.39.
Industry RankSector Rank
PE 13.74
Fwd PE 9.25
CWBC Price Earnings VS Forward Price EarningsCWBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 66.83% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 20.35
EV/EBITDA N/A
CWBC Per share dataCWBC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)1.83
EPS Next 2Y-1.74%
EPS Next 3Y1.54%

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5. Dividend

5.1 Amount

CWBC has a Yearly Dividend Yield of 2.54%.
CWBC's Dividend Yield is comparable with the industry average which is at 3.19.
CWBC's Dividend Yield is comparable with the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 2.54%

5.2 History

The dividend of CWBC is nicely growing with an annual growth rate of 9.15%!
CWBC has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of CWBC decreased recently.
Dividend Growth(5Y)9.15%
Div Incr Years1
Div Non Decr Years1
CWBC Yearly Dividends per shareCWBC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6

5.3 Sustainability

77.40% of the earnings are spent on dividend by CWBC. This is not a sustainable payout ratio.
The dividend of CWBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP77.4%
EPS Next 2Y-1.74%
EPS Next 3Y1.54%
CWBC Yearly Income VS Free CF VS DividendCWBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
CWBC Dividend Payout.CWBC Dividend Payout, showing the Payout Ratio.CWBC Dividend Payout.PayoutRetained Earnings

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COMMUNITY WEST BANCSHARES

NASDAQ:CWBC (1/28/2025, 8:00:01 PM)

After market: 19.38 0 (0%)

19.38

-0.03 (-0.15%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-16 2025-01-16/amc
Earnings (Next)N/A N/A
Inst Owners48.16%
Inst Owner Change-0.4%
Ins Owners10%
Ins Owner Change-1.72%
Market Cap367.25M
Analysts80
Price Target23.72 (22.39%)
Short Float %1.09%
Short Ratio3.3
Dividend
Industry RankSector Rank
Dividend Yield 2.54%
Yearly Dividend0.48
Dividend Growth(5Y)9.15%
DP77.4%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)3.33%
PT rev (3m)2.2%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-31.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)3.24%
Valuation
Industry RankSector Rank
PE 13.74
Fwd PE 9.25
P/S 7.94
P/FCF 20.35
P/OCF 13.19
P/B 3.16
P/tB 3.16
EV/EBITDA N/A
EPS(TTM)1.41
EY7.28%
EPS(NY)2.1
Fwd EY10.81%
FCF(TTM)0.95
FCFY4.91%
OCF(TTM)1.47
OCFY7.58%
SpS2.44
BVpS6.13
TBVpS6.13
PEG (NY)N/A
PEG (5Y)1.83
Profitability
Industry RankSector 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 RankSector 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
WACC10.31%
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)-39.22%
EPS 3Y10.23%
EPS 5Y7.52%
EPS Q2Q%-66.67%
EPS Next Y-72.85%
EPS Next 2Y-1.74%
EPS Next 3Y1.54%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.06%
Revenue growth 3Y4.54%
Revenue growth 5Y4.99%
Sales Q2Q%47.19%
Revenue Next Year37.55%
Revenue Next 2Y27.24%
Revenue Next 3Y19.71%
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%