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EAST WEST BANCORP INC (EWBC) Stock Fundamental Analysis

NASDAQ:EWBC - Nasdaq - US27579R1041 - Common Stock - Currency: USD

89.08  -0.33 (-0.37%)

After market: 89.08 0 (0%)

Fundamental Rating

5

EWBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 402 industry peers in the Banks industry. Both the profitability and the financial health of EWBC get a neutral evaluation. Nothing too spectacular is happening here. EWBC has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year EWBC was profitable.
In the past year EWBC had a positive cash flow from operations.
In the past 5 years EWBC has always been profitable.
EWBC had a positive operating cash flow in each of the past 5 years.
EWBC Yearly Net Income VS EBIT VS OCF VS FCFEWBC 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 2024 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 1.53%, EWBC belongs to the top of the industry, outperforming 91.54% of the companies in the same industry.
The Return On Equity of EWBC (15.09%) is better than 91.29% of its industry peers.
Industry RankSector Rank
ROA 1.53%
ROE 15.09%
ROIC N/A
ROA(3y)1.65%
ROA(5y)1.5%
ROE(3y)16.88%
ROE(5y)15.28%
ROIC(3y)N/A
ROIC(5y)N/A
EWBC Yearly ROA, ROE, ROICEWBC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

1.3 Margins

The Profit Margin of EWBC (44.59%) is better than 98.51% of its industry peers.
In the last couple of years the Profit Margin of EWBC has grown nicely.
EWBC 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) 44.59%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.45%
PM growth 5Y2.26%
GM growth 3YN/A
GM growth 5YN/A
EWBC Yearly Profit, Operating, Gross MarginsEWBC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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5

2. Health

2.1 Basic Checks

EWBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, EWBC has less shares outstanding
The number of shares outstanding for EWBC has been reduced compared to 5 years ago.
EWBC has a better debt/assets ratio than last year.
EWBC Yearly Shares OutstandingEWBC Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
EWBC Yearly Total Debt VS Total AssetsEWBC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.2 Solvency

The Debt to FCF ratio of EWBC is 0.03, which is an excellent value as it means it would take EWBC, only 0.03 years of fcf income to pay off all of its debts.
EWBC has a better Debt to FCF ratio (0.03) than 90.30% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that EWBC is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, EWBC belongs to the best of the industry, outperforming 87.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.03
Altman-Z N/A
ROIC/WACCN/A
WACC16.64%
EWBC Yearly LT Debt VS Equity VS FCFEWBC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
EWBC Yearly Current Assets VS Current LiabilitesEWBC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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5

3. Growth

3.1 Past

EWBC shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.03%.
The Earnings Per Share has been growing by 11.40% on average over the past years. This is quite good.
EWBC shows a small growth in Revenue. In the last year, the Revenue has grown by 0.25%.
EWBC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
EPS 1Y (TTM)-3.03%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%1.96%
Revenue 1Y (TTM)0.25%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%2.23%

3.2 Future

EWBC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.09% yearly.
The Revenue is expected to grow by 10.27% on average over the next years. This is quite good.
EPS Next Y6.88%
EPS Next 2Y8.85%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue Next Year2.57%
Revenue Next 2Y4.96%
Revenue Next 3Y10.27%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
EWBC Yearly Revenue VS EstimatesEWBC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
EWBC Yearly EPS VS EstimatesEWBC Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 10.71, the valuation of EWBC can be described as very reasonable.
Based on the Price/Earnings ratio, EWBC is valued a bit cheaper than 71.14% of the companies in the same industry.
When comparing the Price/Earnings ratio of EWBC to the average of the S&P500 Index (29.35), we can say EWBC is valued rather cheaply.
A Price/Forward Earnings ratio of 10.02 indicates a reasonable valuation of EWBC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EWBC indicates a somewhat cheap valuation: EWBC is cheaper than 64.93% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of EWBC to the average of the S&P500 Index (22.10), we can say EWBC is valued rather cheaply.
Industry RankSector Rank
PE 10.71
Fwd PE 10.02
EWBC Price Earnings VS Forward Price EarningsEWBC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

EWBC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EWBC is cheaper than 75.12% of the companies in the same industry.
Industry RankSector Rank
P/FCF 8.74
EV/EBITDA N/A
EWBC Per share dataEWBC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.56
PEG (5Y)0.94
EPS Next 2Y8.85%
EPS Next 3Y9.09%

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6

5. Dividend

5.1 Amount

EWBC has a Yearly Dividend Yield of 2.68%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.37, EWBC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, EWBC has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.68%

5.2 History

The dividend of EWBC is nicely growing with an annual growth rate of 15.76%!
EWBC has been paying a dividend for at least 10 years, so it has a reliable track record.
EWBC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.76%
Div Incr Years7
Div Non Decr Years14
EWBC Yearly Dividends per shareEWBC Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

EWBC pays out 26.47% of its income as dividend. This is a sustainable payout ratio.
The dividend of EWBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.47%
EPS Next 2Y8.85%
EPS Next 3Y9.09%
EWBC Yearly Income VS Free CF VS DividendEWBC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B
EWBC Dividend Payout.EWBC Dividend Payout, showing the Payout Ratio.EWBC Dividend Payout.PayoutRetained Earnings

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EAST WEST BANCORP INC

NASDAQ:EWBC (3/7/2025, 8:22:37 PM)

After market: 89.08 0 (0%)

89.08

-0.33 (-0.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-23 2025-01-23/amc
Earnings (Next)04-22 2025-04-22/bmo
Inst Owners92.34%
Inst Owner Change-0.08%
Ins Owners0.27%
Ins Owner Change1.78%
Market Cap12.33B
Analysts83.16
Price Target119 (33.59%)
Short Float %2.41%
Short Ratio3.51
Dividend
Industry RankSector Rank
Dividend Yield 2.68%
Yearly Dividend2.22
Dividend Growth(5Y)15.76%
DP26.47%
Div Incr Years7
Div Non Decr Years14
Ex-Date02-03 2025-02-03 (0.6)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.27%
Min EPS beat(2)-4.08%
Max EPS beat(2)-0.47%
EPS beat(4)2
Avg EPS beat(4)0.04%
Min EPS beat(4)-4.08%
Max EPS beat(4)2.67%
EPS beat(8)4
Avg EPS beat(8)0.57%
EPS beat(12)7
Avg EPS beat(12)1.44%
EPS beat(16)10
Avg EPS beat(16)2.35%
Revenue beat(2)1
Avg Revenue beat(2)-1.93%
Min Revenue beat(2)-3.91%
Max Revenue beat(2)0.04%
Revenue beat(4)1
Avg Revenue beat(4)-2.7%
Min Revenue beat(4)-4.65%
Max Revenue beat(4)0.04%
Revenue beat(8)2
Avg Revenue beat(8)-2.01%
Revenue beat(12)6
Avg Revenue beat(12)3.8%
Revenue beat(16)10
Avg Revenue beat(16)6.96%
PT rev (1m)-0.14%
PT rev (3m)7.49%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.53%
Valuation
Industry RankSector Rank
PE 10.71
Fwd PE 10.02
P/S 4.72
P/FCF 8.74
P/OCF 8.74
P/B 1.6
P/tB 1.7
EV/EBITDA N/A
EPS(TTM)8.32
EY9.34%
EPS(NY)8.89
Fwd EY9.98%
FCF(TTM)10.2
FCFY11.45%
OCF(TTM)10.2
OCFY11.45%
SpS18.88
BVpS55.79
TBVpS52.42
PEG (NY)1.56
PEG (5Y)0.94
Profitability
Industry RankSector Rank
ROA 1.53%
ROE 15.09%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 44.59%
GM N/A
FCFM 54.01%
ROA(3y)1.65%
ROA(5y)1.5%
ROE(3y)16.88%
ROE(5y)15.28%
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-2.45%
PM growth 5Y2.26%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.03
Debt/EBITDA N/A
Cap/Depr 0%
Cap/Sales 0%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 121.11%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC16.64%
ROIC/WACCN/A
Cap/Depr(3y)10.42%
Cap/Depr(5y)7.47%
Cap/Sales(3y)0.71%
Cap/Sales(5y)0.53%
Profit Quality(3y)140.85%
Profit Quality(5y)135.44%
High Growth Momentum
Growth
EPS 1Y (TTM)-3.03%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%1.96%
EPS Next Y6.88%
EPS Next 2Y8.85%
EPS Next 3Y9.09%
EPS Next 5YN/A
Revenue 1Y (TTM)0.25%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%2.23%
Revenue Next Year2.57%
Revenue Next 2Y4.96%
Revenue Next 3Y10.27%
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 1Y-0.93%
FCF growth 3Y6.69%
FCF growth 5Y14.31%
OCF growth 1Y-0.93%
OCF growth 3Y6.51%
OCF growth 5Y14%