COMMUNITY WEST BANCSHARES (CWBC)
US2039371073 - Common Stock
We assign a fundamental rating of 4 out of 10 to CWBC. CWBC was compared to 412 industry peers in the Banks industry. CWBC scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. CWBC is not valued too expensively and it also shows a decent growth rate.
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.
In the past 5 years CWBC has always been profitable.
Each year in the past 5 years CWBC had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CWBC (0.67%) is worse than 66.67% of its industry peers.
The Return On Equity of CWBC (6.29%) is worse than 73.24% 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 has a Profit Margin of 15.79%. This is in the lower half of the industry: CWBC underperforms 77.86% of its industry peers.
In the last couple of years the Profit Margin of CWBC has declined.
CWBC does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| 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
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.
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
WACC10.91%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.97% over the past year.
CWBC shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.64% yearly.
The Revenue has decreased by -7.03% in the past year.
The Revenue has been growing slightly by 4.99% on average over the past years.
EPS 1Y (TTM)1.97%
EPS 3Y-5.83%
EPS 5Y-1.64%
EPS growth Q2Q31.58%
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y4.54%
Revenue growth 5Y4.99%
Revenue growth Q2Q-14.58%
3.2 Future
CWBC is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 84.13% yearly.
The Revenue is expected to grow by 29.17% on average over the next years. This is a very strong growth
EPS Next Y195.26%
EPS Next 2Y84.13%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year47.29%
Revenue Next 2Y29.17%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.50, which indicates a very decent valuation of CWBC.
Based on the Price/Earnings ratio, CWBC is valued a bit more expensive than the industry average as 65.21% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 24.84, CWBC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.46, the valuation of CWBC can be described as very cheap.
85.16% of the companies in the same industry are more expensive than CWBC, based on the Price/Forward Earnings ratio.
CWBC is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 7.46 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, CWBC is valued a bit more expensive than the industry average as 78.59% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| 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 84.13% in the coming years.
PEG (NY)0.06
PEG (5Y)N/A
EPS Next 2Y84.13%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CWBC has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.83, CWBC is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.41, CWBC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
On average, the dividend of CWBC grows each year by 27.60%, which is quite nice.
CWBC has paid a dividend for at least 10 years, which is a reliable track record.
CWBC has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)27.6%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
CWBC pays out 77.40% of its income as dividend. This is not a sustainable payout ratio.
The dividend of CWBC is growing, but earnings are growing more, so the dividend growth is sustainable.
DP77.4%
EPS Next 2Y84.13%
EPS Next 3YN/A
COMMUNITY WEST BANCSHARES
NASDAQ:CWBC (4/26/2024, 7:00:00 PM)
After market: 17.83 0 (0%)17.83
-0.17 (-0.94%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap336.45M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 7.46 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.67% | ||
| ROE | 6.29% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 15.79% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.04
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)1.97%
EPS 3Y-5.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y195.26%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.03%
Revenue growth 3Y4.54%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y