PACWEST BANCORP (PACW)

US6952631033 - Common Stock

7.54  -0.21 (-2.71%)

After market: 7.6 +0.06 (+0.8%)

Fundamental Rating

2

Taking everything into account, PACW scores 2 out of 10 in our fundamental rating. PACW was compared to 416 industry peers in the Banks industry. Both the profitability and financial health of PACW have multiple concerns. PACW has a valuation in line with the averages, but on the other hand it scores bad on growth.



2

1. Profitability

1.1 Basic Checks

PACW had positive earnings in the past year.
PACW had a positive operating cash flow in the past year.
Of the past 5 years PACW 4 years were profitable.
Each year in the past 5 years PACW had a positive operating cash flow.

1.2 Ratios

The Return On Assets of PACW (-3.27%) is worse than 99.52% of its industry peers.
With a Return On Equity value of -49.51%, PACW is not doing good in the industry: 99.52% of the companies in the same industry are doing better.
Industry RankSector Rank
ROA -3.27%
ROE -49.51%
ROIC N/A
ROA(3y)-0.59%
ROA(5y)0.35%
ROE(3y)-3.17%
ROE(5y)1.88%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

PACW's Profit Margin has declined in the last couple of years.
The Profit Margin and Operating Margin and Gross Margin are not available for PACW so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-10.15%
PM growth 5Y-1.85%
GM growth 3YN/A
GM growth 5YN/A

1

2. Health

2.1 Basic Checks

PACW does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for PACW remains at a similar level compared to 1 year ago.
PACW has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, PACW has a worse debt to assets ratio.

2.2 Solvency

The Debt to FCF ratio of PACW is 18.17, which is on the high side as it means it would take PACW, 18.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 18.17, PACW is doing worse than 83.93% of the companies in the same industry.
PACW has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
PACW has a worse Debt to Equity ratio (2.85) than 95.68% of its industry peers.
Industry RankSector Rank
Debt/Equity 2.85
Debt/FCF 18.17
Altman-Z N/A
ROIC/WACCN/A
WACC11.75%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

1

3. Growth

3.1 Past

The earnings per share for PACW have decreased strongly by -44.42% in the last year.
PACW shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.05% yearly.
The Revenue for PACW has decreased by -23.40% in the past year. This is quite bad
PACW shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.27% yearly.
EPS 1Y (TTM)-44.42%
EPS 3Y-1.79%
EPS 5Y4.05%
EPS growth Q2Q-78.43%
Revenue 1Y (TTM)-23.4%
Revenue growth 3Y5.67%
Revenue growth 5Y4.27%
Revenue growth Q2Q-83.81%

3.2 Future

The Earnings Per Share is expected to decrease by -46.83% on average over the next years. This is quite bad
PACW is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -16.73% yearly.
EPS Next Y-87.54%
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%
EPS Next 5YN/A
Revenue Next Year-45.69%
Revenue Next 2Y-18.18%
Revenue Next 3Y-16.73%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 3.13, the valuation of PACW can be described as very cheap.
PACW's Price/Earnings ratio is rather cheap when compared to the industry. PACW is cheaper than 98.32% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. PACW is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 9.37 indicates a reasonable valuation of PACW.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PACW indicates a somewhat cheap valuation: PACW is cheaper than 69.54% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.63, PACW is valued rather cheaply.
Industry RankSector Rank
PE 3.13
Fwd PE 9.37

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, PACW is valued cheaper than 96.88% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.25
EV/EBITDA N/A

4.3 Compensation for Growth

A cheap valuation may be justified as PACW's earnings are expected to decrease with -46.83% in the coming years.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%

1

5. Dividend

5.1 Amount

With a yearly dividend of 0.53%, PACW is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.68, PACW's dividend is way lower than its industry peers. On top of this 86.57% of the companies listed in the same industry pay a better dividend than PACW!
Compared to an average S&P500 Dividend Yield of 2.46, PACW's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.53%

5.2 History

The dividend of PACW decreases each year by -10.10%.
PACW has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of PACW decreased recently.
Dividend Growth(5Y)-10.1%
Div Incr Years0
Div Non Decr Years1

5.3 Sustainability

The earnings of PACW are negative and hence is the payout ratio. PACW will probably not be able to sustain this dividend level.
The Dividend Rate of PACW has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP-10.37%
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%

PACWEST BANCORP

NASDAQ:PACW (11/30/2023, 7:16:12 PM)

After market: 7.6 +0.06 (+0.8%)

7.54

-0.21 (-2.71%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap894.17M
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.53%
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 RankSector Rank
PE 3.13
Fwd PE 9.37
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)0.77
Profitability
Industry RankSector Rank
ROA -3.27%
ROE -49.51%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
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 Turnover0.03
Health
Industry RankSector Rank
Debt/Equity 2.85
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)-44.42%
EPS 3Y-1.79%
EPS 5Y
EPS growth Q2Q
EPS Next Y-87.54%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-23.4%
Revenue growth 3Y5.67%
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