Last Updated: 13 Sep 2024
Executive Summary
Community West Bancshares (CWBC) is a financial holding company with a market capitalization of $380.7 million. The company's stock is currently trading at $19.87, within its 52-week range of $11.03 to $24.15. CWBC has a strong financial profile, with a trailing P/E ratio of 23.1 and a forward P/E ratio of 9.14. The company pays a quarterly dividend of $0.48 per share, resulting in a dividend yield of 2.39%. Analysts are generally bullish on CWBC, with 1 strong buy rating, 2 buy ratings, and 2 hold ratings.
Company Overview
Community West Bancshares is the parent company of Community West Bank, N.A., which offers a range of financial products and services to individuals and businesses in California. The company was founded in 1990 and is headquartered in Goleta, California. CWBC has 24 branches and 3 loan production offices in Santa Barbara, Ventura, and San Luis Obispo counties. The company's primary business lines include commercial and residential lending, deposit services, and wealth management.
Fundamental Analysis
CWBC's financial performance has been mixed in recent quarters. The company's revenue declined by 0.068% year-over-year in the latest quarter, while its earnings per share declined by 0.478%. However, CWBC's profitability metrics remain strong, with a profit margin of 11.4% and a return on assets of 0.32%. The company's balance sheet is also solid, with a book value of $18.49 per share and a debt-to-equity ratio of 0.38.
Technical Analysis
CWBC's stock price has been trending lower in recent months. The stock is currently trading below its 50-day and 200-day moving averages, and it has formed a bearish head and shoulders pattern. This pattern suggests that the stock could continue to decline in the short term.
Short Term Outlook
The short-term outlook for CWBC is bearish. The stock's technical indicators are negative, and the company's financial performance has been mixed in recent quarters. Investors should be cautious about buying CWBC stock at this time.
Long Term Outlook
The long-term outlook for CWBC is more positive. The company has a strong financial profile and a solid track record of profitability. CWBC also operates in a growing market, as California is one of the most populous and economically developed states in the United States. Investors who are willing to take on some risk may want to consider buying CWBC stock for the long term.
Analyst Recommendations
Analysts are generally bullish on CWBC. The consensus analyst rating is a buy, and the average analyst target price is $23.75. This suggests that analysts believe that CWBC stock is undervalued at its current price.
