Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $826.44M
• Dividend Yield: 3.49%
• Average Volume (3M): 154.01K
• Price to Earnings (P/E): 13.7
• Beta (1Y): 0.98
• Revenue Growth: 2.81%
• EPS Growth: 6.88%
• Country: US
• Employees: 697
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.67
• Shares Outstanding: 26,981,436
• 10 Day Avg. Volume: 138,778
• 30 Day Avg. Volume: 154,010
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 2.34
• Enterprise Value/Gross Profit: 3.25
• Enterprise Value/Ebitda: 9.42
• 1Y Price Target: $35.00
• Price Target Upside: 14.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 77 Outperform
• Price Target: $33.00 ▲(7.74% Upside)

Central Pacific Financial's overall stock score is driven by strong financial performance and positive technical indicators. The company's fair valuation and strategic initiatives, such as enhancing shareholder procedures and maintaining a robust dividend yield, further support the score. However, challenges in the loan portfolio and potential economic headwinds are noted.

Positive Factors

Revenue Growth

The significant revenue growth reflects the company's ability to expand its market presence and enhance its service offerings, which is crucial for long-term sustainability and competitiveness in the banking sector.

Efficiency Ratio Improvement

Improved efficiency ratio indicates better cost management and operational efficiency, which can lead to higher profitability and stronger financial health over time.

Recognition as Best Bank

Being recognized as the Best Bank in Hawaii enhances brand reputation and customer trust, potentially attracting more clients and supporting long-term growth.

Negative Factors

Loan Portfolio Decline

A declining loan portfolio can limit interest income growth and indicates potential challenges in maintaining or expanding lending activities, affecting long-term revenue.

Increase in Net Charge-Offs

Increased net charge-offs reflect credit risk and can impact profitability, highlighting the need for improved risk management strategies to safeguard future earnings.

Slight Decline in Total Deposits

A decline in total deposits may signal reduced customer confidence or competitive pressure, potentially affecting liquidity and the ability to fund future growth.

Central Pacific Financial Business Overview & Revenue Model

Company Description

Central Pacific Financial (CPF) is a financial services holding company based in Hawaii, primarily engaged in the banking sector through its subsidiary, Central Pacific Bank. The company provides a comprehensive range of banking products and services, including commercial and consumer loans, deposit accounts, mortgage services, and wealth management solutions. CPF focuses on serving the diverse financial needs of individuals, businesses, and communities throughout 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, wealth management services, and mortgage banking activities. The company earns interest income by extending loans to consumers and businesses, charging interest rates that exceed the rates it pays on deposits. Additionally, CPF benefits from non-interest income streams by charging fees for account maintenance, transaction services, and other banking-related services. Partnerships with local businesses and community organizations also play a role in expanding its customer base and enhancing its service offerings, contributing to overall earnings.

Central Pacific Financial Financial Statement Overview

Summary

Central Pacific Financial demonstrates strong profitability with growing revenues and healthy cash flow generation, particularly in TTM figures. Despite a low equity ratio, the company maintains low leverage, enhancing financial stability. Continued focus on operational efficiency and equity improvement could further strengthen the financial position.

Income Statement

The TTM figures show a healthy gross profit margin of 100.15% and a net profit margin of 20.20%, indicating strong profitability. Positive revenue growth of 17.16% from the previous year showcases growth potential. However, the EBIT margin of 16.94% and EBITDA margin of 18.17% suggest room for operational efficiency improvements.

Balance Sheet

The debt-to-equity ratio of 0.06 indicates low leverage, which is positive for financial stability. The equity ratio of 7.53% is quite low, suggesting limited equity relative to total assets. A return on equity of 10.45% reflects decent profitability for shareholders but could be improved.

Cash Flow

The operating cash flow to net income ratio of 1.66 and free cash flow to net income ratio of 1.54 indicate strong cash generation relative to earnings. A significant free cash flow growth rate of 19.03% from the previous year highlights robust cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	346.47M	340.48M	319.63M	277.04M	259.86M	257.62M
Gross Profit	249.73M	236.47M	231.71M	261.50M	267.00M	200.77M
EBITDA	86.15M	77.15M	84.47M	106.93M	116.10M	61.42M
Net Income	60.68M	53.41M	58.67M	73.93M	79.89M	37.27M
Balance Sheet
Total Assets	7.37B	7.47B	7.64B	7.43B	7.42B	6.59B
Cash, Cash Equivalents and Short-Term Investments	876.15M	924.80M	1.17B	783.84M	1.96B	1.29B
Total Debt	163.45M	188.37M	186.74M	146.75M	146.35M	174.58M
Total Liabilities	6.80B	6.93B	7.14B	6.98B	6.86B	6.05B
Stockholders Equity	568.87M	538.38M	503.81M	452.87M	558.22M	546.68M
Cash Flow
Free Cash Flow	92.24M	75.43M	92.46M	95.68M	88.33M	50.80M
Operating Cash Flow	102.36M	90.52M	105.11M	114.12M	110.49M	76.79M
Investing Cash Flow	11.62M	654.00K	179.66M	-384.48M	-662.30M	-596.95M
Financing Cash Flow	-95.83M	-232.67M	125.62M	53.50M	776.65M	521.25M

Central Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.63
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 30.63 is above the 20-day moving average (MA) of 30.32, above the 50-day MA of 28.79, and above the 200-day MA of 27.63, indicating a bullish trend. The MACD of 0.76 indicates Positive momentum. The RSI at 59.90 is Neutral, neither overbought nor oversold. The STOCH value of 22.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CPF.

Central Pacific Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSBC	81 Outperform	$961.40M	9.97	12.51%	1.31%	2.02%	-2.80%
NBN	79 Outperform	$880.74M	10.95	19.16%	0.04%	33.02%	33.76%
CPF	77 Outperform	$826.44M	13.71	11.16%	3.49%	2.81%	6.88%
MBWM	74 Outperform	$775.38M	9.49	13.77%	3.10%	8.72%	-0.45%
BFST	73 Outperform	$725.32M	9.72	10.18%	2.29%	16.88%	3.07%
MCBS	73 Outperform	$740.85M	11.28	15.67%	3.24%	4.92%	20.83%
Sector *	68 Neutral	$18.02B	11.58	9.93%	3.75%	9.73%	1.23%

Central Pacific Financial Corporate Events

Central Pacific Financial Enhances Shareholder Meeting Procedures

On July 24, 2025, Central Pacific Financial‘s board approved new bylaws enhancing shareholder meeting procedures and director nominations, effective immediately. The company reported a net income of $18.3 million for Q2 2025, with improved net interest margin and efficiency ratio, despite a slight decrease in total assets and loans. The company declared a quarterly cash dividend and continued its share repurchase program.

Central Pacific Financial Cancels Unissued Preferred Shares

On June 24, 2025, Central Pacific Financial Corp. filed a Statement of Cancellation with the State of Hawaii to cancel all previously designated, but unissued, shares of its Preferred Stock. These shares were restored to the status of authorized but unissued shares, maintaining the total at one million shares, as per the company’s Restated Articles of Incorporation.