EAST WEST BANCORP INC (EWBC)
US27579R1041 - Common Stock
EWBC gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 412 industry peers in the Banks industry. EWBC has a medium profitability rating, but doesn't score so well on its financial health evaluation. EWBC is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
EWBC had positive earnings in the past year.
In the past year EWBC had a positive cash flow from operations.
In the past 5 years EWBC has always been profitable.
Each year in the past 5 years EWBC had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.67%, EWBC belongs to the top of the industry, outperforming 92.23% of the companies in the same industry.
EWBC has a Return On Equity of 16.70%. This is amongst the best in the industry. EWBC outperforms 92.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 16.7% | ||
| ROIC | N/A |
ROA(3y)1.62%
ROA(5y)1.5%
ROE(3y)16.84%
ROE(5y)14.94%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 44.53%, EWBC belongs to the best of the industry, outperforming 97.57% of the companies in the same industry.
EWBC's Profit Margin has been stable in the last couple of years.
EWBC 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) | 44.53% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y8.15%
PM growth 5Y0.3%
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
EWBC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EWBC is higher compared to a year ago.
2.2 Solvency
EWBC has a debt to FCF ratio of 3.27. This is a good value and a sign of high solvency as EWBC would need 3.27 years to pay back of all of its debts.
EWBC has a Debt to FCF ratio (3.27) which is in line with its industry peers.
A Debt/Equity ratio of 0.67 indicates that EWBC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.67, EWBC is doing worse than 75.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 3.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.81%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
EWBC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.33%, which is quite good.
EWBC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.98% yearly.
EWBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.22%.
The Revenue has been growing by 10.21% on average over the past years. This is quite good.
EPS 1Y (TTM)8.33%
EPS 3Y29.29%
EPS 5Y12.98%
EPS growth Q2Q-13.92%
Revenue 1Y (TTM)11.22%
Revenue growth 3Y17.37%
Revenue growth 5Y10.21%
Revenue growth Q2Q-2.34%
3.2 Future
EWBC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.39% yearly.
Based on estimates for the next years, EWBC will show a small growth in Revenue. The Revenue will grow by 7.09% on average per year.
EPS Next Y-6.36%
EPS Next 2Y-0.74%
EPS Next 3Y4.39%
EPS Next 5YN/A
Revenue Next Year-1.33%
Revenue Next 2Y1.42%
Revenue Next 3Y7.09%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.37, the valuation of EWBC can be described as reasonable.
Based on the Price/Earnings ratio, EWBC is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.80, EWBC is valued rather cheaply.
EWBC is valuated reasonably with a Price/Forward Earnings ratio of 8.94.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EWBC indicates a somewhat cheap valuation: EWBC is cheaper than 68.45% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.27. EWBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.37 | ||
| Fwd PE | 8.94 |
4.2 Price Multiples
EWBC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. EWBC is cheaper than 66.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.06 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.64
EPS Next 2Y-0.74%
EPS Next 3Y4.39%
5. Dividend
5.1 Amount
EWBC has a Yearly Dividend Yield of 2.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.91, EWBC is paying slightly less dividend.
EWBC's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
5.2 History
The dividend of EWBC is nicely growing with an annual growth rate of 17.59%!
EWBC has paid a dividend for at least 10 years, which is a reliable track record.
EWBC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.59%
Div Incr Years6
Div Non Decr Years13
5.3 Sustainability
23.65% 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.
DP23.65%
EPS Next 2Y-0.74%
EPS Next 3Y4.39%
EAST WEST BANCORP INC
NASDAQ:EWBC (4/18/2024, 7:00:02 PM)
After market: 71.66 -0.14 (-0.19%)71.8
+0.24 (+0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.05B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.98% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 8.37 | ||
| Fwd PE | 8.94 | ||
| 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)N/A
PEG (5Y)0.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.67% | ||
| ROE | 16.7% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 44.53% | ||
| 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 | 0.67 | ||
| 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)8.33%
EPS 3Y29.29%
EPS 5Y
EPS growth Q2Q
EPS Next Y-6.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.22%
Revenue growth 3Y17.37%
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