EAST WEST BANCORP INC (EWBC) Stock Fundamental Analysis
NASDAQ:EWBC - Nasdaq - US27579R1041 - Common Stock - Currency: USD
EWBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 397 industry peers in the Banks industry. EWBC has only an average score on both its financial health and profitability. EWBC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
EWBC had positive earnings in the past year.
EWBC had a positive operating cash flow in the past year.
Each year in the past 5 years EWBC has been profitable.
In the past 5 years EWBC always reported a positive cash flow from operatings.
1.2 Ratios
EWBC's Return On Assets of 1.53% is amongst the best of the industry. EWBC outperforms 90.93% of its industry peers.
The Return On Equity of EWBC (15.09%) is better than 92.19% of its industry peers.
| Industry Rank | Sector 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
1.3 Margins
With an excellent Profit Margin value of 44.59%, EWBC belongs to the best of the industry, outperforming 98.49% of the companies in the same industry.
EWBC's Profit Margin has improved in the last couple of years.
The Operating Margin and Gross Margin are not available for EWBC so they could not be analyzed.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
EWBC does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for EWBC has been reduced compared to 1 year ago.
Compared to 5 years ago, EWBC has less shares outstanding
Compared to 1 year ago, EWBC has an improved debt to assets ratio.
2.2 Solvency
EWBC has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.03, EWBC belongs to the best of the industry, outperforming 89.92% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that EWBC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, EWBC belongs to the top of the industry, outperforming 87.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.66%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for EWBC have decreased by -0.12% in the last year.
EWBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.40% yearly.
Looking at the last year, EWBC shows a small growth in Revenue. The Revenue has grown by 2.71% in the last year.
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)-0.12%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%0.48%
Revenue 1Y (TTM)2.71%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%22.5%
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 8.71% yearly.
The Revenue is expected to grow by 6.80% on average over the next years.
EPS Next Y6.17%
EPS Next 2Y7.97%
EPS Next 3Y8.71%
EPS Next 5YN/A
Revenue Next Year3.86%
Revenue Next 2Y4.65%
Revenue Next 3Y6.8%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.76, the valuation of EWBC can be described as reasonable.
EWBC's Price/Earnings ratio is a bit cheaper when compared to the industry. EWBC is cheaper than 64.99% of the companies in the same industry.
EWBC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.21.
EWBC is valuated reasonably with a Price/Forward Earnings ratio of 9.25.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EWBC indicates a somewhat cheap valuation: EWBC is cheaper than 62.47% of the companies listed in the same industry.
EWBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.25 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, EWBC is valued a bit cheaper than the industry average as 74.06% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.75 | ||
| EV/EBITDA | N/A |
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)1.75
PEG (5Y)0.94
EPS Next 2Y7.97%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
EWBC has a Yearly Dividend Yield of 2.67%.
EWBC's Dividend Yield is comparable with the industry average which is at 3.44.
Compared to an average S&P500 Dividend Yield of 2.42, EWBC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
5.3 Sustainability
26.47% of the earnings are spent on dividend by EWBC. This is a low number and sustainable payout ratio.
EWBC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP26.47%
EPS Next 2Y7.97%
EPS Next 3Y8.71%
89.67
-0.13 (-0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners92.34%
Inst Owner Change-0.02%
Ins Owners0.27%
Ins Owner Change1.38%
Market Cap12.36B
Analysts81.11
Price Target102.46 (14.26%)
Short Float %3.57%
Short Ratio3.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend2.22
Dividend Growth(5Y)15.76%
DP26.47%
Div Incr Years7
Div Non Decr Years14
Ex-Date
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)-11.3%
PT rev (3m)-14.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.24%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)1.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.76 | ||
| Fwd PE | 9.25 | ||
| P/S | 4.73 | ||
| P/FCF | 8.75 | ||
| P/OCF | 8.75 | ||
| P/B | 1.6 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.33
EY9.29%
EPS(NY)9.7
Fwd EY10.82%
FCF(TTM)10.24
FCFY11.42%
OCF(TTM)10.24
OCFY11.42%
SpS18.97
BVpS56.05
TBVpS52.67
PEG (NY)1.75
PEG (5Y)0.94
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC16.66%
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)-0.12%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%0.48%
EPS Next Y6.17%
EPS Next 2Y7.97%
EPS Next 3Y8.71%
EPS Next 5YN/A
Revenue 1Y (TTM)2.71%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%22.5%
Revenue Next Year3.86%
Revenue Next 2Y4.65%
Revenue Next 3Y6.8%
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%