Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $719.93M
• Dividend Yield: 3.93%
• Average Volume (3M): 186.70K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.17
• Revenue Growth: 6.13%
• EPS Growth: -9.06%
• Country: US
• Employees: 737
• Sector: Financial
• Sector Strength: 81
• Industry: Banking
• EPS (TTM): 1.97
• Shares Outstanding: 27,115,849
• 10 Day Avg. Volume: 176,014
• 30 Day Avg. Volume: 186,702
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 2.91
• Price to Cash Flow (P/CF): 6.80
• P/FCF Ratio: 4.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $32.00
• Price Target Upside: 19.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Central Pacific Financial's stock reflects a moderate investment opportunity. The company's strong liquidity and stable cash flow management are positive factors, but inconsistent revenue growth and technical indicators suggest caution. Valuation is fair, and recent earnings and corporate developments indicate positive future prospects, albeit with some risks.

Central Pacific Financial Business Overview & Revenue Model

Company Description

Central Pacific Financial Corp. is a bank holding company, which engages in the provision of commercial banking services through its wholly owned subsidiary, Central Pacific Bank. It operates through the following segments: Banking Operations, Treasury, and All Others. The Banking Operations segment includes construction and real estate development lending, commercial lending, residential mortgage lending and servicing, indirect auto lending, trust services, and retail brokerage services. The Treasury segment involves in managing company's investment securities portfolio and wholesale funding activities. The All Others segment consists electronic banking, data processing, and management of bank owned properties. The company was founded on February 1, 1982 and is headquartered in Honolulu, HI.

How the Company Makes Money

Central Pacific Financial makes money primarily through its subsidiary, Central Pacific Bank, by offering a wide range of banking and financial services. The company earns revenue from interest income derived from loans and mortgages issued to customers, including individuals and businesses. Additionally, CPF generates non-interest income through service charges, fees for banking services, and commissions from wealth management and investment services. The bank benefits from its strategic location and long-standing relationships in the Hawaiian market, which contribute to its stable customer base and steady revenue streams. Partnerships with local businesses and community organizations further enhance its market presence and financial performance.

Central Pacific Financial Financial Statement Overview

Summary

Central Pacific Financial shows a stable financial position with strong liquidity and minimal debt. However, its revenue growth has been inconsistent, and operational inefficiencies are indicated by decreasing margins. Cash flow management is strong, though there is volatility in free cash flow growth.

Income Statement

Central Pacific Financial demonstrated a fluctuating revenue trend, with a recent decline from 2022 to 2023 but recovery in 2024. The gross profit margin remained strong, as expected in the banking industry, given the nature of its revenues. However, the net profit margin has seen variability, highlighting some potential inefficiencies or increased costs. EBIT and EBITDA margins exhibit a decreasing trend, reflecting potential operational inefficiencies or increased expenses.

Balance Sheet

The balance sheet shows robust liquidity with a strong cash position. The equity ratio is healthy, indicating a solid financial foundation. The absence of debt in 2024 suggests an improved financial structure, reducing leverage risk. However, the prior years had noticeable debt levels, signaling past reliance on leverage.

Cash Flow

Operating cash flow remains positive, indicating good cash generation from operations. However, free cash flow growth has been inconsistent, suggesting potential volatility in capital expenditures or cash flow management. The free cash flow to net income ratio is favorable, indicating effective conversion of net income to cash.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
306.10M	240.95M	263.48M	254.11M	238.47M
	Gross Profit
306.10M	240.95M	263.48M	254.11M	238.47M
	EBIT
38.72M	102.18M	115.86M	105.65M	49.03M
	EBITDA
0.00	0.00	47.92M	43.06M	45.20M
	Net Income Common Stockholders
53.41M	58.67M	73.93M	79.89M	37.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
815.43M	763.39M	783.84M	1.96B	1.29B
	Total Assets
7.47B	7.64B	7.43B	7.42B	6.59B
	Total Debt
188.37M	186.74M	146.75M	146.35M	174.58M
	Net Debt
-192.57M	-335.70M	34.70M	-182.56M	70.51M
	Total Liabilities
6.93B	7.14B	6.98B	146.35M	6.05B
	Stockholders Equity
538.38M	503.81M	452.87M	558.22M	546.68M
Cash Flow		Free Cash Flow
90.52M	92.46M	95.68M	88.33M	50.80M
	Operating Cash Flow
90.52M	105.11M	114.12M	110.49M	76.79M
	Investing Cash Flow
654.00K	179.66M	-384.48M	-662.30M	-596.95M
	Financing Cash Flow
-232.67M	125.62M	53.50M	776.65M	521.25M

Central Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 26.74
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 26.74 is below the 20-day moving average (MA) of 28.25, below the 50-day MA of 28.31, and above the 200-day MA of 26.53, indicating a neutral trend. The MACD of -0.54 indicates Positive momentum. The RSI at 34.48 is Neutral, neither overbought nor oversold. The STOCH value of 11.16 is Positive, 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
CUBI	72 Outperform	$1.52B	9.80	10.44%	―	-3.61%	-29.58%
FHB	71 Outperform	$3.12B	13.77	9.02%	4.21%	3.53%	-2.18%
ZION	69 Neutral	$7.09B	9.68	13.15%	3.50%	7.91%	13.79%
BOH	66 Neutral	$2.68B	19.46	9.73%	4.21%	4.63%	-16.29%
CPF	65 Neutral	$719.93M	13.50	10.25%	3.93%	6.13%	-9.06%
Sector *	63 Neutral	$13.85B	10.47	9.22%	4.23%	17.31%	-7.79%
WAL	60 Neutral	$8.13B	10.39	12.32%	1.98%	13.60%	8.85%

Central Pacific Financial Corporate Events

Central Pacific Financial Highlights Resilience in 2025 Presentation

Central Pacific Financial Corp. presented a slide presentation in March 2025, highlighting forward-looking statements regarding its financial projections and strategic plans. The presentation emphasized the company’s resilience amid economic challenges, with a net income of $11.3 million in Q4 and $53.4 million for the full year 2024, supported by a strong real estate market, low unemployment, and robust construction activity in Hawaii.

Central Pacific Financial Announces Key Executive Promotions

On February 25, 2025, Central Pacific Financial Corp. and Central Pacific Bank announced the promotion of David Morimoto to Vice Chairman and Chief Operating Officer, and Dayna Matsumoto to Executive Vice President and Chief Financial Officer, effective March 1, 2025. These appointments are part of the company’s strategy to align its executive team with strategic, financial, and business objectives, enhancing leadership depth and experience. Morimoto, with over 30 years at the bank, and Matsumoto, with 18 years, bring extensive experience to their new roles, which is expected to positively impact the company’s operations and strategic positioning.

Central Pacific Financial Announces 2024 Financial Results

Central Pacific Financial Corp. reported its financial results for the fourth quarter and full year 2024, noting a net income of $11.3 million for the quarter and $53.4 million for the year. The company completed an investment portfolio repositioning, incurring a pre-tax loss of $9.9 million in the fourth quarter, but expects improved net interest income. The board approved a dividend increase and a share repurchase program for 2025. The bank also became a member of the Federal Reserve System, reflecting its strategic positioning and operational strength.

Central Pacific Financial Appoints New Board Director

On January 28, 2025, Dr. Diane S.L. Paloma was appointed to the Boards of Directors of Central Pacific Financial Corp. and Central Pacific Bank, increasing the board size to twelve directors. Dr. Paloma, currently the President and CEO of Hawaii Dental Service, brings extensive experience in healthcare and business, which is expected to provide valuable insights to the board. This appointment is part of the company’s strategy to strengthen its leadership and enhance its service to the Hawaiian community, as Dr. Paloma is well-respected in local business and non-profit sectors.