EAST WEST BANCORP INC (EWBC) Stock Fundamental Analysis
NASDAQ:EWBC - Nasdaq - US27579R1041 - Common Stock - Currency: USD
Taking everything into account, EWBC scores 5 out of 10 in our fundamental rating. EWBC was compared to 398 industry peers in the Banks industry. EWBC has only an average score on both its financial health and profitability. EWBC is not valued too expensively and it also shows a decent growth rate.
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.
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 91.46% of its industry peers.
EWBC's Return On Equity of 15.09% is amongst the best of the industry. EWBC outperforms 92.21% 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
The Profit Margin of EWBC (44.59%) is better than 98.49% of its industry peers.
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.
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.
The debt/assets ratio for EWBC has been reduced compared to a year ago.
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 89.45% of the companies in the same industry.
EWBC has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of EWBC (0.00) is better than 87.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.9%
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.
Measured over the past years, EWBC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.40% on average per year.
The Revenue has been growing slightly by 2.71% in the past year.
Measured over the past years, EWBC shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
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
The Earnings Per Share is expected to grow by 8.71% on average over the next years. This is quite good.
EWBC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.80% yearly.
EPS Next Y6.17%
EPS Next 2Y7.97%
EPS Next 3Y8.71%
EPS Next 5YN/A
Revenue Next Year5.81%
Revenue Next 2Y5.69%
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
The Price/Earnings ratio is 10.24, which indicates a very decent valuation of EWBC.
Compared to the rest of the industry, the Price/Earnings ratio of EWBC indicates a somewhat cheap valuation: EWBC is cheaper than 68.84% of the companies listed in the same industry.
EWBC is valuated cheaply when we compare the Price/Earnings ratio to 28.78, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.79, the valuation of EWBC can be described as reasonable.
EWBC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EWBC is cheaper than 65.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.32. EWBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.79 |
4.2 Price Multiples
73.62% of the companies in the same industry are more expensive than EWBC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.32 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EWBC's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.66
PEG (5Y)0.9
EPS Next 2Y7.97%
EPS Next 3Y8.71%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.79%, EWBC has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.52, EWBC has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.46, EWBC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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
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 2Y7.97%
EPS Next 3Y8.71%
85.26
-0.71 (-0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners92.34%
Inst Owner Change-46.33%
Ins Owners0.27%
Ins Owner Change0.8%
Market Cap11.75B
Analysts83.16
Price Target103.79 (21.73%)
Short Float %3.18%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
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)-12.79%
PT rev (3m)-12.4%
EPS NQ rev (1m)0.32%
EPS NQ rev (3m)1.28%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)2.24%
Revenue NQ rev (3m)5.05%
Revenue NY rev (1m)3.16%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.79 | ||
| P/S | 4.49 | ||
| P/FCF | 8.32 | ||
| P/OCF | 8.32 | ||
| P/B | 1.52 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.33
EY9.77%
EPS(NY)9.7
Fwd EY11.38%
FCF(TTM)10.24
FCFY12.02%
OCF(TTM)10.24
OCFY12.02%
SpS18.97
BVpS56.05
TBVpS52.67
PEG (NY)1.66
PEG (5Y)0.9
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
WACC16.9%
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 Year5.81%
Revenue Next 2Y5.69%
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%