PACWEST BANCORP (PACW)
US6952631033 - Common Stock
We assign a fundamental rating of 2 out of 10 to PACW. PACW was compared to 407 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.
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.
PACW had positive earnings in 4 of the past 5 years.
Each year in the past 5 years PACW had a positive operating cash flow.
1.2 Ratios
PACW has a worse Return On Assets (-3.27%) than 99.52% of its industry peers.
PACW's Return On Equity of -49.51% is on the low side compared to the rest of the industry. PACW is outperformed by 99.52% of its industry peers.
| Industry Rank | Sector 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
In the last couple of years the Profit Margin of PACW has declined.
PACW does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
PACW does not have a ROIC to compare to the WACC, probably because it is not profitable.
PACW has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for PACW has been reduced compared to 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.
PACW has a worse Debt to FCF ratio (18.17) than 83.93% of its industry peers.
PACW has a Debt/Equity ratio of 2.85. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.85, PACW is not doing good in the industry: 95.68% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.85 | ||
| Debt/FCF | 18.17 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.75%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
PACW shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -44.42%.
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
Measured over the past years, PACW shows a small growth in Revenue. The Revenue has been growing by 4.27% on average per year.
EPS 1Y (TTM)-44.42%
EPS 3Y-1.79%
EPS 5Y4.05%
EPS Q2Q%-78.43%
Revenue 1Y (TTM)-23.4%
Revenue growth 3Y5.67%
Revenue growth 5Y4.27%
Sales 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
Based on estimates for the next years, PACW will show a very negative growth in Revenue. The Revenue will decrease by -16.73% on average per year.
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.
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 3.13, which indicates a rather cheap valuation of PACW.
98.32% of the companies in the same industry are more expensive than PACW, based on the Price/Earnings ratio.
PACW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
With a Price/Forward Earnings ratio of 9.37, the valuation of PACW can be described as very reasonable.
Based on the Price/Forward Earnings ratio, PACW is valued a bit cheaper than the industry average as 69.54% of the companies are valued more expensively.
PACW's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.13 | ||
| Fwd PE | 9.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PACW indicates a rather cheap valuation: PACW is cheaper than 96.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
PACW's earnings are expected to decrease with -46.83% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.77
EPS Next 2Y-52.48%
EPS Next 3Y-46.83%
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 3.36, 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 2.30, PACW's dividend is way lower than the S&P500 average.
| Industry Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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)
High Growth Momentum
Growth
EPS 1Y (TTM)-44.42%
EPS 3Y-1.79%
EPS 5Y
EPS 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
Sales 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