EAST WEST BANCORP INC (EWBC) Stock Fundamental Analysis
USA - NASDAQ:EWBC - US27579R1041 - Common Stock
101.6 USD
+0.47 (+0.46%)
101.6 USD
0 (0%)
EWBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 390 industry peers in the Banks industry. Both the profitability and the financial health of EWBC get a neutral evaluation. Nothing too spectacular is happening here. EWBC has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EWBC was profitable.
EWBC had a positive operating cash flow in the past year.
In the past 5 years EWBC has always been profitable.
EWBC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EWBC has a Return On Assets of 1.53%. This is amongst the best in the industry. EWBC outperforms 89.49% of its industry peers.
EWBC has a better Return On Equity (14.54%) than 92.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 14.54% | ||
| 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 43.73%, EWBC belongs to the best of the industry, outperforming 97.95% of the companies in the same industry.
In the last couple of years the Profit Margin of EWBC has grown nicely.
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) | 43.73% | ||
| 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
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
The Debt to FCF ratio of EWBC is 0.02, which is an excellent value as it means it would take EWBC, only 0.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.02, EWBC belongs to the top of the industry, outperforming 87.95% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that EWBC is not too dependend on debt financing.
With an excellent Debt to Equity ratio value of 0.00, EWBC belongs to the best of the industry, outperforming 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.77%
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 grown by an nice 9.54% over the past 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.
Looking at the last year, EWBC shows a quite strong growth in Revenue. The Revenue has grown by 9.78% in the last year.
The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)9.54%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%25.36%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%18.3%
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 9.31% yearly.
Based on estimates for the next years, EWBC will show a small growth in Revenue. The Revenue will grow by 6.63% on average per year.
EPS Next Y11.74%
EPS Next 2Y9.32%
EPS Next 3Y9.31%
EPS Next 5YN/A
Revenue Next Year5.44%
Revenue Next 2Y5.02%
Revenue Next 3Y6.63%
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.20, the valuation of EWBC can be described as very reasonable.
EWBC's Price/Earnings is on the same level as the industry average.
EWBC is valuated cheaply when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 10.22, which indicates a very decent valuation of EWBC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EWBC is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.52. EWBC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, EWBC is valued a bit cheaper than the industry average as 68.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.71 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
EWBC's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.95
PEG (5Y)0.98
EPS Next 2Y9.32%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
EWBC has a Yearly Dividend Yield of 2.37%.
Compared to an average industry Dividend Yield of 3.52, EWBC is paying slightly less dividend.
EWBC's Dividend Yield is comparable with the S&P500 average which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
5.2 History
On average, the dividend of EWBC grows each year by 15.76%, which is quite nice.
EWBC has paid a dividend for at least 10 years, which is 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
26.93% of the earnings are spent on dividend by EWBC. This is a low number and sustainable payout ratio.
The dividend of EWBC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.93%
EPS Next 2Y9.32%
EPS Next 3Y9.31%
101.6
+0.47 (+0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners95.44%
Inst Owner Change-0.08%
Ins Owners0.27%
Ins Owner Change-4.93%
Market Cap14.00B
Revenue(TTM)2.85B
Net Income(TTM)1.19B
Analysts80.95
Price Target127.64 (25.63%)
Short Float %2.84%
Short Ratio4.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.37% |
Yearly Dividend2.22
Dividend Growth(5Y)15.76%
DP26.93%
Div Incr Years7
Div Non Decr Years14
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-0.53%
Min EPS beat(2)-0.58%
Max EPS beat(2)-0.49%
EPS beat(4)0
Avg EPS beat(4)-1.4%
Min EPS beat(4)-4.08%
Max EPS beat(4)-0.47%
EPS beat(8)3
Avg EPS beat(8)0.36%
EPS beat(12)5
Avg EPS beat(12)0.38%
EPS beat(16)8
Avg EPS beat(16)0.85%
Revenue beat(2)0
Avg Revenue beat(2)-2.88%
Min Revenue beat(2)-3.16%
Max Revenue beat(2)-2.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.41%
Min Revenue beat(4)-3.91%
Max Revenue beat(4)0.04%
Revenue beat(8)1
Avg Revenue beat(8)-2.74%
Revenue beat(12)4
Avg Revenue beat(12)0.23%
Revenue beat(16)8
Avg Revenue beat(16)4.39%
PT rev (1m)4.48%
PT rev (3m)11.96%
EPS NQ rev (1m)0.76%
EPS NQ rev (3m)1.91%
EPS NY rev (1m)0.57%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)1.49%
Revenue NY rev (1m)-1.55%
Revenue NY rev (3m)0.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 10.22 | ||
| P/S | 5.13 | ||
| P/FCF | 9.71 | ||
| P/OCF | 9.71 | ||
| P/B | 1.71 | ||
| P/tB | 1.81 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.07
EY8.93%
EPS(NY)9.94
Fwd EY9.79%
FCF(TTM)10.47
FCFY10.3%
OCF(TTM)10.47
OCFY10.3%
SpS19.79
BVpS59.51
TBVpS56.13
PEG (NY)0.95
PEG (5Y)0.98
Graham Number110.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.53% | ||
| ROE | 14.54% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 43.73% | ||
| GM | N/A | ||
| FCFM | 52.9% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.02 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 120.96% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC15.77%
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)9.54%
EPS 3Y10.9%
EPS 5Y11.4%
EPS Q2Q%25.36%
EPS Next Y11.74%
EPS Next 2Y9.32%
EPS Next 3Y9.31%
EPS Next 5YN/A
Revenue 1Y (TTM)9.78%
Revenue growth 3Y12.88%
Revenue growth 5Y9.11%
Sales Q2Q%18.3%
Revenue Next Year5.44%
Revenue Next 2Y5.02%
Revenue Next 3Y6.63%
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-10.84%
FCF growth 3Y6.69%
FCF growth 5Y14.31%
OCF growth 1Y-10.84%
OCF growth 3Y6.51%
OCF growth 5Y14%
EAST WEST BANCORP INC / EWBC FAQ
What is the ChartMill fundamental rating of EAST WEST BANCORP INC (EWBC) stock?
ChartMill assigns a fundamental rating of 5 / 10 to EWBC.
Can you provide the valuation status for EAST WEST BANCORP INC?
ChartMill assigns a valuation rating of 5 / 10 to EAST WEST BANCORP INC (EWBC). This can be considered as Fairly Valued.
Can you provide the profitability details for EAST WEST BANCORP INC?
EAST WEST BANCORP INC (EWBC) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for EWBC stock?
The Price/Earnings (PE) ratio for EAST WEST BANCORP INC (EWBC) is 11.2 and the Price/Book (PB) ratio is 1.71.
How sustainable is the dividend of EAST WEST BANCORP INC (EWBC) stock?
The dividend rating of EAST WEST BANCORP INC (EWBC) is 5 / 10 and the dividend payout ratio is 26.93%.