Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $811.31M
• Dividend Yield: 3.39%
• Average Volume (3M): 159.72K
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.91
• Revenue Growth: 1.22%
• EPS Growth: 15.97%
• Country: US
• Employees: 697
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.85
• Shares Outstanding: 26,289,976
• 10 Day Avg. Volume: 241,833
• 30 Day Avg. Volume: 159,718
• PEG Ratio: 0.23
• Price to Book (P/B): 1.40
• Price to Sales (P/S): 2.30
• P/FCF Ratio: 9.66
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 3.14
• Enterprise Value/Ebitda: 8.13
• 1Y Price Target: $36.50
• Price Target Upside: 18.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 3.23
• Revenue Forecast (FY): $306.77M

• Rating: 68 Neutral
• Price Target: $35.00 ▲(13.42% Upside)
• Action: Downgraded Date: 02/28/26
• Date: Action: Downgraded 02/28/26

Overall score reflects solid underlying financial performance and a supportive valuation (modest P/E with a meaningful dividend), reinforced by a positive earnings call highlighting margin expansion and capital return. The score is tempered by uneven cash-flow trends and only mixed near-term technicals, plus conservative growth guidance driven by loan runoff and funding timing.

Positive Factors

Low-cost core deposit franchise

A sizable share of noninterest and core deposits plus recent deposit growth and lower average deposit costs underpin stable, low-cost funding. This durable funding advantage supports net interest margin resilience, loan pricing flexibility and capital deployment (dividends/buybacks) over the medium term.

Strong capital and active capital returns

Robust capital actions and buybacks signal conservative capital management and confidence in earnings durability. A meaningful repurchase program and modest dividend increases indicate management prioritizes shareholder returns while retaining capacity to absorb shocks given regulatory capital targets, supporting long-term investor confidence.

Revenue and margin recovery

Improving NII, expanding margins and accelerating revenue in 2025 reflect regained operating leverage and pricing/funding improvements. Sustained margin expansion and steady revenue growth enhance medium-term earnings power, enabling reinvestment and supporting dividends even if margins remain below peak-cycle levels.

Negative Factors

Loan balance decline and runoff

Significant runoff and large payoffs reduced earning assets and pressured loan growth, creating near-term NII headwinds. Because some pipelines were delayed into 2026, recurring growth may remain muted and the bank must rebuild originations to restore durable loan-driven revenue growth.

Volatile free cash flow generation

Multi-year negative FCF growth signals inconsistent cash conversion, which can constrain organic investment, dividend sustainability and the pace of buybacks. Even with a stronger 2025 cash conversion, the volatility raises questions about the durability of shareholder returns and funding flexibility.

Concentrated Hawaii market exposure and local macro risk

Heavy concentration in Hawaii ties earnings and asset quality to tourism and local labor conditions. Persistent softness in visitors or employment can limit loan demand, deposit growth and increase credit sensitivity, constraining durable growth and making performance more cyclical than diversified peers.

Central Pacific Financial Business Overview & Revenue Model

Company Description

Central Pacific Financial Corp. operates as the holding company for Central Pacific Bank that provides commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including personal and business checking and savings accounts, money market accounts, and time certificates of deposit. The company's lending activities comprise commercial loans, financial and agricultural loans, commercial and residential mortgages, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as home equity, and consumer loans to local homebuyers and individuals. It also provides debit cards, internet and mobile banking, cash management, full-service ATMs, digital banking services, traveler's checks, safe deposit boxes, international banking services, night depository facilities, foreign exchange and wire transfers, trust services, and retail brokerage services. In addition, the company offers wealth management products and services, including non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services. As of December 31, 2021, it operated 30 branches and 69 automated teller machines in the state of Hawaii. The company was incorporated in 1954 and is headquartered in Honolulu, Hawaii.

How the Company Makes Money

Central Pacific Financial generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and other banking services. The key revenue streams include interest earned on personal loans, commercial loans, and mortgages, which are offset by interest expenses related to deposits and borrowings. Additionally, CPF earns non-interest income from fees on checking and savings accounts, transaction services, and wealth management services. The company's profitability is supported by its strong focus on the local market, strategic partnerships with various businesses in Hawaii, and a commitment to providing tailored financial solutions that meet the needs of its community.

Central Pacific Financial Financial Statement Overview

Summary

Financials show a solid 2025 rebound with improving revenue and profitability and lower leverage (Income Statement 74, Balance Sheet 71). The main offset is uneven cash-flow trends and multi-year negative free-cash-flow growth despite good 2025 cash conversion (Cash Flow 63).

Income Statement

Revenue has grown steadily over the period, with an acceleration in 2025 (annual revenue up from 2024 and a higher growth rate). Profitability is solid for a regional bank, with net margin improving meaningfully in 2025 versus 2024, and operating profitability also rebounding. The main weakness is that margins were notably higher in 2021–2022 and have not fully returned to those peak levels, indicating some earnings sensitivity to the rate/credit cycle.

Balance Sheet

Leverage looks reasonable and improving: debt relative to equity declined in 2025 versus 2023–2024, and equity has increased alongside stable total assets. Returns on shareholder capital improved in 2025 versus 2024, supporting balance-sheet quality and earnings power. The key watch-out is that returns are still below the stronger 2022 level, suggesting profitability is not at prior-cycle highs.

Cash Flow

Cash generation is generally supportive: operating cash flow increased in 2025 and free cash flow matched net income in 2025, indicating strong cash conversion. However, free cash flow growth has been negative for several consecutive years (including a sharp decline in 2025), pointing to volatility in cash generation. While coverage of interest expense appears very strong in 2025, it was extremely low in prior years, highlighting inconsistency that investors should monitor.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	362.32M	340.48M	319.63M	277.04M	259.86M
Gross Profit	275.80M	236.47M	231.71M	261.50M	267.00M
EBITDA	100.68M	77.15M	84.47M	106.93M	116.10M
Net Income	77.48M	53.41M	58.67M	73.93M	79.89M
Balance Sheet
Total Assets	7.41B	7.47B	7.64B	7.43B	7.42B
Cash, Cash Equivalents and Short-Term Investments	836.41M	924.80M	1.17B	783.84M	1.96B
Total Debt	127.64M	188.37M	186.74M	146.75M	146.35M
Total Liabilities	6.82B	6.93B	7.14B	6.98B	6.86B
Stockholders Equity	592.58M	538.38M	503.81M	452.87M	558.22M
Cash Flow
Free Cash Flow	86.10M	75.43M	92.46M	95.68M	88.33M
Operating Cash Flow	97.47M	90.52M	105.11M	114.12M	110.49M
Investing Cash Flow	67.19M	654.00K	179.66M	-384.48M	-662.30M
Financing Cash Flow	-166.94M	-232.67M	125.62M	53.50M	776.65M

Central Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 30.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CPF, the sentiment is Negative. The current price of 30.86 is below the 20-day moving average (MA) of 32.50, below the 50-day MA of 32.24, and above the 200-day MA of 29.54, indicating a neutral trend. The MACD of -0.47 indicates Positive momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 26.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CPF.

Central Pacific Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMAL	74 Outperform	$1.13B	9.18	13.88%	1.70%	4.33%	-2.20%
HFWA	71 Outperform	$1.03B	9.03	7.51%	3.91%	8.27%	54.96%
HBT	70 Outperform	$972.05M	10.55	13.78%	3.21%	3.86%	12.33%
CPF	68 Neutral	$811.31M	10.73	11.65%	3.39%	1.22%	15.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MCB	66 Neutral	$792.70M	11.38	8.80%	0.38%	6.48%	8.78%
HBNC	52 Neutral	$815.38M	-5.75	-26.60%	3.50%	-78.64%	-913.67%

Central Pacific Financial Corporate Events

Central Pacific Financial posts strong Q4 and 2025 results

On January 28, 2026, Central Pacific Financial reported strong fourth-quarter and full-year 2025 results, with quarterly net income rising to $22.9 million, or $0.85 per diluted share, and full-year net income climbing to $77.5 million, or $2.86 per diluted share, compared with 2024. Key profitability metrics improved, including a fourth-quarter ROA of 1.25%, ROE of 15.41% and an efficiency ratio of 59.88%, supported by higher net interest income, a wider net interest margin of 3.56%, lower deposit costs and contained operating expenses. The bank maintained a stable balance sheet, with total assets at $7.41 billion, modest loan contraction offset by growth in core deposits, and solid asset quality characterized by low nonperforming assets and reduced net charge-offs, while preserving a robust capital position with strong regulatory capital ratios. Shareholder returns remained a priority as the company repurchased $16.3 million of stock in the quarter (and $23.3 million for the year), increased its quarterly dividend by 3.6% to $0.29 per share, and secured board approval for a new $55 million share repurchase program for 2026, signaling confidence in its earnings power and capital strength.

The most recent analyst rating on (CPF) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Central Pacific Financial stock, see the CPF Stock Forecast page.

Central Pacific Financial Unveils Strategic Plans for Growth

Central Pacific Financial Corp. announced its intention to present a slide presentation in various meetings during December 2025, which contains forward-looking statements about the company’s financial projections and strategic plans. The company emphasizes its strategic focus on sustainable growth, brand strengthening, and disciplined asset deployment, while highlighting its operational excellence through process automation and cost optimization initiatives.

The most recent analyst rating on (CPF) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on Central Pacific Financial stock, see the CPF Stock Forecast page.