Community West Bancshares: Leading performance but fundamentals not looking strong?

Community West Bancshares relative valuation is UNDERVALUED and it has a fundamental analysis score of 29.

Our analysis is based on comparing Community West Bancshares with the following peers – 1st Century Bancshares, Inc., TriCo Bancshares, Heritage Commerce Corp, Heritage Oaks Bancorp, East West Bancorp, Inc., Pacific Premier Bancorp, Inc., Central Valley Community Bancorp, SVB Financial Group, Opus Bank and Wilshire Bancorp, Inc. (FCTY-US, TCBK-US, HTBK-US, HEOP-US, EWBC-US, PPBI-US, CVCY-US, SIVB-US, OPB-US and WIBC-US).

Community West Bancshares has shown good performance overall, both over the last one year (at 22.69%) as well as over the last month (at 12.45%). Share price performance over the last month, though has been lower than that over the last year. But Community West Bancshares’s stock has done better than its overall peer group whose performance was 3.35% over the last month.

Company Snapshot

  • Considering peers, relative outperformance over the last year and the last month suggest a leading position.
  • Community West Bancshares’s current Price/Book of 1.07 is about median in its peer group.
  • The market expects faster earnings growth from CWBC-US than from its peers and also a turnaround in its current ROE.
  • CWBC-US has relatively low net profit margins while its capital efficiency is relatively high.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • CWBC-US‘s return on equity currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • While the company’s lending operations do not seem to benefit from any relative pricing advantage its margins suggest relatively high operating costs.
  • While CWBC-US‘s revenues have increased slower than peer median, the market currently gives the company a higher than peer median P/E ratio and may be factoring in some sort of a strategic play.
  • The company’s equity capital investment program suggests it is under-investing in a business that is producing peer median returns.
  • Our analysis rates Community West Bancshares as UNDERVALUED relative to its peers.

Share Price Performance

Considering peers, relative outperformance over the last year and the last month suggest a leading position.

CWBC-US‘s share price performance of 22.69% over the last 12 months is above peer median of 12.74%. The 30-day trend in its share price performance of 12.45% is also above the peer median of 3.35% suggesting that this company is a leading performer relative to its peers.

Share Price Performance

Quadrant label definitions. Hover to know more

Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Community West Bancshares’s price of USD 8.09 is lower than CapitalCube’s implied price of USD 11.30. CapitalCube believes that at these levels, Community West Bancshares is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 6.46 and USD 9.21.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Community West Bancshares operates as a bank holding company, which provides full service banking through its wholly-owned subsidiary Community West Bank, N.A. The company provides a variety of financial products and services to customers including lending and deposit products. These products and services include deposit products such as checking accounts, savings accounts, money market accounts and fixed rate, fixed maturity certificates of deposits and lending products including; commercial, commercial real estate and consumer loans. Community West Bancshares was founded on November 26, 1996 and is headquartered in Goleta, CA.

Disclaimer

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