Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $735.90M
• Dividend Yield: 3.95%
• Average Volume (3M): 146.73K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.97
• Revenue Growth: 4.38%
• EPS Growth: 4.94%
• Country: US
• Employees: 697
• Sector: Financial
• Sector Strength: 77
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 26,975,927
• 10 Day Avg. Volume: 185,358
• 30 Day Avg. Volume: 146,729
• PEG Ratio: 9.73
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.97
• Enterprise Value/Market Cap: 1.42
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 3.23
• 1Y Price Target: $32.00
• Price Target Upside: 17.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: ―

Central Pacific Financial shows strong financial performance with profitability and cash flow generation, bolstered by positive earnings call highlights. The stock's valuation is appealing with a solid dividend yield, though technical indicators suggest mixed momentum. Recent corporate events support a positive strategic outlook, but challenges like deposit declines and tourism recovery impact the overall score.

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 investment securities, alongside non-interest income from service charges, fees, and wealth management services. The company leverages its extensive local network and customer relationships to attract deposits, which fund its lending activities. Key revenue streams include mortgage banking, commercial loans, and consumer lending. Additionally, CPF benefits from strategic partnerships within the financial services sector that expand its product offerings and enhance its market presence.

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
345.95M	340.48M	282.66M	277.04M	259.86M	257.62M
	Gross Profit
243.57M	236.47M	231.71M	261.50M	267.00M	200.77M
	EBIT
73.67M	68.04M	102.18M	98.77M	105.65M	67.91M
	EBITDA
82.80M	77.15M	84.47M	106.93M	116.10M	61.42M
	Net Income Common Stockholders
58.23M	53.41M	58.67M	73.93M	79.89M	37.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
887.05M	815.43M	763.39M	783.84M	1.96B	1.29B
	Total Assets
7.41B	7.47B	7.64B	7.43B	7.42B	6.59B
	Total Debt
162.46M	188.37M	186.74M	146.75M	146.35M	174.58M
	Net Debt
-75.61M	-192.57M	-335.70M	34.70M	-182.56M	70.51M
	Total Liabilities
6.85B	6.93B	7.14B	6.98B	146.35M	6.05B
	Stockholders Equity
557.38M	538.38M	503.81M	452.87M	558.22M	546.68M
Cash Flow		Free Cash Flow
88.89M	75.43M	92.46M	95.68M	88.33M	50.80M
	Operating Cash Flow
96.48M	90.52M	105.11M	114.12M	110.49M	76.79M
	Investing Cash Flow
-51.54M	654.00K	179.66M	-384.48M	-662.30M	-596.95M
	Financing Cash Flow
-78.34M	-232.67M	125.62M	53.50M	776.65M	521.25M

Central Pacific Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 27.24 is above the 20-day moving average (MA) of 26.78, above the 50-day MA of 26.01, and below the 200-day MA of 27.62, indicating a neutral trend. The MACD of 0.21 indicates Negative momentum. The RSI at 58.05 is Neutral, neither overbought nor oversold. The STOCH value of 86.52 is Negative, 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	80 Outperform	$768.66M	9.30	12.98%	1.41%	2.27%	-6.70%
MBWM	73 Outperform	$731.56M	9.38	13.55%	3.28%	12.26%	-6.93%
MCBS	72 Outperform	$717.34M	10.95	16.05%	3.26%	8.74%	30.39%
NBN	71 Outperform	$681.45M	9.51	17.91%	0.05%	26.40%	24.62%
CPF	69 Neutral	$735.90M	12.74	10.94%	3.95%	4.38%	4.94%
BFST	66 Neutral	$719.21M	9.95	9.77%	2.31%	18.34%	-4.12%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%

Central Pacific Financial Corporate Events

Central Pacific Financial Reports Strong Q1 2025 Results

Central Pacific Financial Corp. reported a net income of $17.8 million for the first quarter of 2025, reflecting a strong financial performance compared to previous periods. The company achieved a notable improvement in its efficiency ratio and net interest margin, attributed to balance sheet optimization and favorable asset quality. Despite a decrease in total deposits, the company’s capital and liquidity positions remain robust, positioning it well to navigate the current economic environment. The board declared a quarterly cash dividend, indicating confidence in future prospects.