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PACWEST BANCORP (PACW) Stock Fundamental Analysis

NASDAQ:PACW - Nasdaq - US6952631033 - Common Stock - Currency: USD

7.54  -0.21 (-2.71%)

After market: 7.6 +0.06 (+0.8%)

Fundamental Rating

2

PACW gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 405 industry peers in the Banks industry. PACW has a bad profitability rating. Also its financial health evaluation is rather negative. PACW has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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2

1. Profitability

1.1 Basic Checks

In the past year PACW was profitable.
PACW had a positive operating cash flow in the past year.
Of the past 5 years PACW 4 years were profitable.
In the past 5 years PACW always reported a positive cash flow from operatings.
PACW Yearly Net Income VS EBIT VS OCF VS FCFPACW 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 0 500M -500M -1B

1.2 Ratios

PACW has a Return On Assets of -3.27%. This is amonst the worse of the industry: PACW underperforms 99.52% of its industry peers.
PACW has a Return On Equity of -49.51%. This is amonst the worse of the industry: PACW underperforms 99.52% of its industry peers.
Industry RankSector Rank
ROA -3.27%
ROE -49.51%
ROIC N/A
ROA(3y)-0.59%
ROA(5y)0.35%
ROE(3y)-3.17%
ROE(5y)1.88%
ROIC(3y)N/A
ROIC(5y)N/A
PACW Yearly ROA, ROE, ROICPACW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 10 -10 -20 -30

1.3 Margins

In the last couple of years the Profit Margin of PACW has declined.
PACW does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.15%
PM growth 5Y-1.85%
GM growth 3YN/A
GM growth 5YN/A
PACW Yearly Profit, Operating, Gross MarginsPACW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 -50 -100

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0

2. Health

2.1 Basic Checks

PACW does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, PACW has about the same amount of shares outstanding.
The debt/assets ratio for PACW is higher compared to a year ago.
PACW Yearly Shares OutstandingPACW Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 20M 40M 60M 80M 100M
PACW Yearly Total Debt VS Total AssetsPACW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 10B 20B 30B 40B

2.2 Solvency

The Debt to FCF ratio of PACW is 18.17, which is on the high side as it means it would take PACW, 18.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PACW (18.17) is worse than 83.93% of its industry peers.
PACW has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
PACW's Debt to Equity ratio of 2.85 is on the low side compared to the rest of the industry. PACW is outperformed by 95.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.85
Debt/FCF 18.17
Altman-Z N/A
ROIC/WACCN/A
WACC11.75%
PACW Yearly LT Debt VS Equity VS FCFPACW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 1B 2B 3B 4B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
PACW Yearly Current Assets VS Current LiabilitesPACW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M

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1

3. Growth

3.1 Past

PACW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.42%.
Measured over the past 5 years, PACW shows a small growth in Earnings Per Share. The EPS has been growing by 4.05% on average per year.
Looking at the last year, PACW shows a very negative growth in Revenue. The Revenue has decreased by -23.40% in the last year.
PACW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
EPS 1Y (TTM)-44.42%
EPS 3Y-1.79%
EPS 5Y4.05%
EPS Q2Q%-78.43%
Revenue 1Y (TTM)-23.4%
Revenue growth 3Y5.67%
Revenue growth 5Y4.27%
Sales Q2Q%-83.81%

3.2 Future

Based on estimates for the next years, PACW will show a very negative growth in Earnings Per Share. The EPS will decrease by -46.83% on average per year.
The Revenue is expected to decrease by -16.73% on average over the next years. This is quite bad
EPS Next Y-87.54%
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%
EPS Next 5YN/A
Revenue Next Year-45.69%
Revenue Next 2Y-18.18%
Revenue Next 3Y-16.73%
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 decreasing.
PACW Yearly Revenue VS EstimatesPACW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B
PACW Yearly EPS VS EstimatesPACW Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3 4 5

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.13 indicates a rather cheap valuation of PACW.
98.32% of the companies in the same industry are more expensive than PACW, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 29.63, PACW is valued rather cheaply.
A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of PACW.
Based on the Price/Forward Earnings ratio, PACW is valued a bit cheaper than 69.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, PACW is valued rather cheaply.
Industry RankSector Rank
PE 3.13
Fwd PE 9.37
PACW Price Earnings VS Forward Price EarningsPACW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PACW is valued cheaply inside the industry as 96.88% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 2.25
EV/EBITDA N/A
PACW Per share dataPACW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

A cheap valuation may be justified as PACW's earnings are expected to decrease with -46.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%

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5. Dividend

5.1 Amount

PACW has a yearly dividend return of 0.53%, which is pretty low.
Compared to an average industry Dividend Yield of 3.18, PACW's dividend is way lower than its industry peers. On top of this 86.57% of the companies listed in the same industry pay a better dividend than PACW!
With a Dividend Yield of 0.53, PACW pays less dividend than the S&P500 average, which is at 2.27.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

The dividend of PACW decreases each year by -10.10%.
PACW has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of PACW decreased recently.
Dividend Growth(5Y)-10.1%
Div Incr Years0
Div Non Decr Years1
PACW Yearly Dividends per sharePACW Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 0.5 1 1.5 2

5.3 Sustainability

PACW has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The Dividend Rate of PACW has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-10.37%
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%
PACW Yearly Income VS Free CF VS DividendPACW Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 0 500M -500M -1B

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PACWEST BANCORP

NASDAQ:PACW (11/30/2023, 8:16:12 PM)

After market: 7.6 +0.06 (+0.8%)

7.54

-0.21 (-2.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)10-24 2023-10-24/bmo
Earnings (Next)01-24 2024-01-24/amc
Inst Owners0%
Inst Owner Change0%
Ins Owners0.92%
Ins Owner Change0%
Market Cap894.17M
Analysts74.29
Price Target10.67 (41.51%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
Yearly Dividend1.16
Dividend Growth(5Y)-10.1%
DP-10.37%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.29%
Min EPS beat(2)6.63%
Max EPS beat(2)27.95%
EPS beat(4)2
Avg EPS beat(4)-4.95%
Min EPS beat(4)-48.44%
Max EPS beat(4)27.95%
EPS beat(8)4
Avg EPS beat(8)-0.96%
EPS beat(12)7
Avg EPS beat(12)7.1%
EPS beat(16)8
Avg EPS beat(16)-0.14%
Revenue beat(2)0
Avg Revenue beat(2)-13.06%
Min Revenue beat(2)-23.17%
Max Revenue beat(2)-2.96%
Revenue beat(4)0
Avg Revenue beat(4)-12.63%
Min Revenue beat(4)-23.17%
Max Revenue beat(4)-2.96%
Revenue beat(8)2
Avg Revenue beat(8)-6.49%
Revenue beat(12)4
Avg Revenue beat(12)-3.99%
Revenue beat(16)6
Avg Revenue beat(16)-3.14%
PT rev (1m)2.45%
PT rev (3m)-9.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)25.78%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.24%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.41%
Valuation
Industry RankSector Rank
PE 3.13
Fwd PE 9.37
P/S 0.85
P/FCF 2.25
P/OCF 1.74
P/B 0.35
P/tB 0.36
EV/EBITDA N/A
EPS(TTM)2.41
EY31.96%
EPS(NY)0.8
Fwd EY10.67%
FCF(TTM)3.36
FCFY44.5%
OCF(TTM)4.34
OCFY57.52%
SpS8.87
BVpS21.36
TBVpS21.14
PEG (NY)N/A
PEG (5Y)0.77
Profitability
Industry RankSector Rank
ROA -3.27%
ROE -49.51%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM 37.84%
ROA(3y)-0.59%
ROA(5y)0.35%
ROE(3y)-3.17%
ROE(5y)1.88%
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-10.15%
PM growth 5Y-1.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.85
Debt/FCF 18.17
Debt/EBITDA N/A
Cap/Depr 178.26%
Cap/Sales 11.08%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score3
WACC11.75%
ROIC/WACCN/A
Cap/Depr(3y)117.8%
Cap/Depr(5y)109.15%
Cap/Sales(3y)5.89%
Cap/Sales(5y)5.43%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-44.42%
EPS 3Y-1.79%
EPS 5Y4.05%
EPS Q2Q%-78.43%
EPS Next Y-87.54%
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%
EPS Next 5YN/A
Revenue 1Y (TTM)-23.4%
Revenue growth 3Y5.67%
Revenue growth 5Y4.27%
Sales Q2Q%-83.81%
Revenue Next Year-45.69%
Revenue Next 2Y-18.18%
Revenue Next 3Y-16.73%
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 1Y2.94%
FCF growth 3Y4.27%
FCF growth 5Y7.62%
OCF growth 1Y16.77%
OCF growth 3Y6.4%
OCF growth 5Y7.72%