Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $873.77M
• Dividend Yield: 3.39%
• Average Volume (3M): 159.72K
• Price to Earnings (P/E): 11.4
• Beta (1Y): 0.88
• 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: 26,827,513
• 10 Day Avg. Volume: 241,833
• 30 Day Avg. Volume: 159,718
• PEG Ratio: -1.60
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 2.31
• P/FCF Ratio: 10.42
• Enterprise Value/Market Cap: 0.94
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 3.20
• Enterprise Value/Ebitda: 8.85
• 1Y Price Target: $36.50
• Price Target Upside: 10.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 79 Outperform
• Price Target: $36.00 ▲(9.16% Upside)

The score is driven primarily by strong financial performance (profitability, low leverage, and robust cash generation) and a supportive earnings outlook with capital returns. Valuation is reasonable with a solid dividend yield, while technicals appear neutral with only modest positive momentum.

Positive Factors

Strong profitability and margins

Sustained high net and EBIT margins indicate durable earnings power and pricing discipline. Elevated margins provide a buffer against credit losses and higher funding costs, supporting consistent earnings, reinvestment capacity, and shareholder returns over multiple quarters.

Robust cash generation

Very strong cash conversion and positive free cash flow growth underpin financial flexibility. Reliable cash generation funds organic growth, dividend increases and buybacks while reducing reliance on external funding, strengthening resilience across economic cycles.

Conservative capital and low leverage

Very low leverage and healthy regulatory capital ratios provide a durable cushion for losses and growth funding. Strong capital supports continued dividend policy and repurchases, and gives the bank flexibility to pursue disciplined loan growth without jeopardizing solvency metrics.

Negative Factors

Significant loan runoff and shrinking balances

Material loan runoff reduces interest-earning assets and pressures future net interest income if not replaced. Persistent contraction can erode core revenue, force more aggressive deployment into riskier loans to rebuild yields, and slow durable loan-driven growth.

High regional concentration (Hawaii) and local headwinds

Heavy geographic concentration ties credit and deposit trends to Hawaii's cyclical tourism and labor dynamics. Local downturns or slower tourism growth can persistently limit loan demand, increase credit volatility, and constrain deposit growth versus more diversified peers.

Small, volatile construction portfolio

A thin construction book creates balance‑sheet volatility as large payoffs or delayed draws swing loan growth. Building scale takes time and capital; until critical mass is achieved, the portfolio will remain a noisy, less reliable driver of stable long‑term loan growth.

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

Strong overall fundamentals: high profitability (TTM net margin 20.92%, EBIT margin 32.39%) and very strong TTM revenue growth (81.1%). Balance sheet leverage is conservative (debt-to-equity 0.045) with healthy ROE (11.71%), and cash generation is strong (operating cash flow to net income 3.93; free cash flow growth 6.23%). Offsets include a declining gross margin and a noted decline in stockholders’ equity over time.

Income Statement

Central Pacific Financial shows strong profitability with a TTM net profit margin of 20.92% and an EBIT margin of 32.39%. The revenue growth rate of 81.1% in the TTM period indicates significant expansion. However, the gross profit margin has decreased compared to previous years, suggesting increased cost pressures.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.045 in the TTM period, indicating conservative leverage. Return on equity is healthy at 11.71%, reflecting efficient use of equity. The equity ratio stands at 7.92%, showing a stable capital structure. However, the decrease in stockholders' equity over time could be a concern if it continues.

Cash Flow

Operating cash flow is robust, with a TTM operating cash flow to net income ratio of 3.93, indicating strong cash generation relative to net income. Free cash flow growth is positive at 6.23%, supporting future investments. The free cash flow to net income ratio of 0.98 suggests efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.28M	340.48M	319.63M	277.04M	259.86M	257.62M
Gross Profit	256.58M	236.47M	231.71M	261.50M	267.00M	200.77M
EBITDA	92.83M	77.15M	84.47M	106.93M	116.10M	61.42M
Net Income	65.95M	53.41M	58.67M	73.93M	79.89M	37.27M
Balance Sheet
Total Assets	7.42B	7.47B	7.64B	7.43B	7.42B	6.59B
Cash, Cash Equivalents and Short-Term Investments	861.54M	924.80M	1.17B	783.84M	1.96B	1.29B
Total Debt	26.29M	188.37M	186.74M	146.75M	146.35M	174.58M
Total Liabilities	6.83B	6.93B	7.14B	6.98B	6.86B	6.05B
Stockholders Equity	588.07M	538.38M	503.81M	452.87M	558.22M	546.68M
Cash Flow
Free Cash Flow	97.98M	75.43M	92.46M	95.68M	88.33M	50.80M
Operating Cash Flow	103.25M	90.52M	105.11M	114.12M	110.49M	76.79M
Investing Cash Flow	-53.65M	654.00K	179.66M	-384.48M	-662.30M	-596.95M
Financing Cash Flow	-66.28M	-232.67M	125.62M	53.50M	776.65M	521.25M

Central Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 32.98 is above the 20-day moving average (MA) of 31.85, above the 50-day MA of 31.44, and above the 200-day MA of 28.80, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 59.87 is Neutral, neither overbought nor oversold. The STOCH value of 39.04 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
CPF	79 Outperform	$873.77M	11.39	11.65%	3.39%	1.22%	15.97%
AMAL	79 Outperform	$1.16B	11.39	13.88%	1.70%	4.33%	-2.20%
HBT	79 Outperform	$848.03M	11.06	13.78%	3.21%	3.86%	12.33%
HFWA	76 Outperform	$876.42M	13.17	6.43%	3.91%	8.27%	54.96%
MCB	71 Outperform	$953.59M	13.99	8.80%	0.38%	6.48%	8.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HBNC	57 Neutral	$902.45M	-5.70	-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.

Paul K. Yonamine Resigns from Central Pacific Financial

On November 6, 2025, Paul K. Yonamine announced his resignation from the boards of Central Pacific Financial Corp. and its subsidiary, Central Pacific Bank, effective immediately. His departure, after serving since 2017, is due to personal reasons and not related to any disagreements with the company or bank, suggesting a stable leadership transition.

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.

Central Pacific Financial Reports Strong Q3 2025 Results

Central Pacific Financial Corp. reported strong financial results for the third quarter of 2025, with a net income of $18.6 million, reflecting growth in loans and deposits. The company announced plans to redeem subordinated notes and increase its quarterly cash dividend, highlighting its solid earnings and capital position. Additionally, the partnership with Kyoto Shinkin Bank aims to strengthen business ties between Hawaii and Japan, demonstrating the company’s commitment to expanding its international presence.

The most recent analyst rating on (CPF) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Central Pacific Financial stock, see the CPF Stock Forecast page.