113.4 USD
-0.12 (-0.11%)
113.4 USD
0 (0%)
EWBC gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 383 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 decent growth rate and is not valued too expensively. Finally EWBC also has an excellent dividend rating. With these ratings, EWBC could be worth investigating further for dividend investing!.
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.
- EWBC had positive earnings in each of the past 5 years.
- EWBC had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- EWBC's Return On Assets of 1.58% is amongst the best of the industry. EWBC outperforms 89.56% of its industry peers.
- Looking at the Return On Equity, with a value of 14.70%, EWBC belongs to the top of the industry, outperforming 92.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.58% | ||
| ROE | 14.7% | ||
| ROIC | N/A |
ROA(3y)1.62%
ROA(5y)1.61%
ROE(3y)15.56%
ROE(5y)16.1%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- The Profit Margin of EWBC (44.31%) is better than 97.91% of its industry peers.
- 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) | 44.31% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-2.06%
PM growth 5Y5.12%
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.
- EWBC has less shares outstanding than it did 1 year ago.
- EWBC has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, EWBC has an improved debt to assets ratio.
2.2 Solvency
- EWBC has a debt to FCF ratio of 0.08. This is a very positive value and a sign of high solvency as it would only need 0.08 years to pay back of all of its debts.
- EWBC has a Debt to FCF ratio of 0.08. This is amongst the best in the industry. EWBC outperforms 87.73% of its industry peers.
- A Debt/Equity ratio of 0.01 indicates that EWBC is not too dependend on debt financing.
- The Debt to Equity ratio of EWBC (0.01) is better than 86.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.01 | ||
| Debt/FCF | 0.08 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.28%
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 14.66%, which is quite good.
- The Earnings Per Share has been growing by 19.17% on average over the past years. This is quite good.
- EWBC shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.16%.
- Measured over the past years, EWBC shows a quite strong growth in Revenue. The Revenue has been growing by 12.70% on average per year.
EPS 1Y (TTM)14.66%
EPS 3Y6.4%
EPS 5Y19.17%
EPS Q2Q%22.6%
Revenue 1Y (TTM)12.16%
Revenue growth 3Y7.74%
Revenue growth 5Y12.7%
Sales Q2Q%11.95%
3.2 Future
- Based on estimates for the next years, EWBC will show a small growth in Earnings Per Share. The EPS will grow by 7.81% on average per year.
- EWBC is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.17% yearly.
EPS Next Y8.44%
EPS Next 2Y7.81%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year12.43%
Revenue Next 2Y8.1%
Revenue Next 3Y11.17%
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.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.89, the valuation of EWBC can be described as very reasonable.
- EWBC's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of EWBC to the average of the S&P500 Index (28.87), we can say EWBC is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.96 indicates a reasonable valuation of EWBC.
- EWBC's Price/Forward Earnings ratio is in line with the industry average.
- EWBC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.96.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.96 |
4.2 Price Multiples
- EWBC's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.11 | ||
| 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)1.41
PEG (5Y)0.62
EPS Next 2Y7.81%
EPS Next 3YN/A
5. Dividend
5.1 Amount
- EWBC has a Yearly Dividend Yield of 2.82%.
- EWBC's Dividend Yield is comparable with the industry average which is at 2.62.
- Compared to an average S&P500 Dividend Yield of 1.82, EWBC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.82% |
5.2 History
- The dividend of EWBC is nicely growing with an annual growth rate of 15.76%!
- 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
- 25.97% 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.
DP25.97%
EPS Next 2Y7.81%
EPS Next 3YN/A
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.
What is the valuation status of EAST WEST BANCORP INC (EWBC) stock?
ChartMill assigns a valuation rating of 4 / 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.
What is the earnings growth outlook for EAST WEST BANCORP INC?
The Earnings per Share (EPS) of EAST WEST BANCORP INC (EWBC) is expected to grow by 8.44% in the next year.
Can you provide the dividend sustainability for EWBC stock?
The dividend rating of EAST WEST BANCORP INC (EWBC) is 7 / 10 and the dividend payout ratio is 25.97%.