Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $787.70M
• Dividend Yield: 3.7%
• Average Volume (3M): 187.93K
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.02
• Revenue Growth: 4.38%
• EPS Growth: 4.94%
• Country: US
• Employees: 697
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.65
• Shares Outstanding: 26,975,927
• 10 Day Avg. Volume: 169,919
• 30 Day Avg. Volume: 187,928
• 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: 1.33
• Enterprise Value/Revenue: 0.76
• Enterprise Value/Gross Profit: 4.29
• Enterprise Value/Ebitda: 3.23
• 1Y Price Target: $32.00
• Price Target Upside: 8.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 71 Outperform
• Price Target: $30.00 ▲(1.94%Upside)

Central Pacific Financial displays a solid financial foundation with strong profitability and cash flow generation. The valuation is attractive due to a low P/E ratio and a healthy dividend yield. While recent earnings highlight positive growth in loans and net interest margins, challenges such as deposit declines and tourism recovery pose risks. Technical indicators suggest stable trading near short-term averages.

Central Pacific Financial Business Overview & Revenue Model

Company Description

Central Pacific Financial (CPF) is a regional bank holding company based in Honolulu, Hawaii, primarily operating through its subsidiary, Central Pacific Bank. It provides a range of financial services including retail, commercial, and private banking, as well as wealth management and mortgage banking services. The bank focuses on serving individuals, small businesses, and large enterprises across Hawaii, offering products such as deposit accounts, loans, credit cards, and investment services.

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
EBITDA	82.80M	77.15M	84.47M	106.93M	116.10M	61.42M
Net Income	58.23M	53.41M	58.67M	73.93M	79.89M	37.27M
Balance Sheet
Total Assets	7.41B	7.47B	7.64B	7.43B	7.42B	6.59B
Cash, Cash Equivalents and Short-Term Investments	887.05M	815.43M	763.39M	783.84M	1.96B	1.29B
Total Debt	162.46M	188.37M	186.74M	146.75M	146.35M	174.58M
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: 29.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 29.43 is above the 20-day moving average (MA) of 27.24, above the 50-day MA of 26.77, and above the 200-day MA of 27.69, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 74.54 is Negative, neither overbought nor oversold. The STOCH value of 95.47 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	78 Outperform	$1.25B	10.31	12.98%	1.27%	2.27%	-6.70%
BFST	78 Outperform	$767.62M	10.62	9.77%	2.17%	18.39%	-4.12%
NBN	75 Outperform	$752.46M	10.50	17.91%	0.04%	26.40%	24.62%
MBWM	73 Outperform	$794.88M	10.19	13.55%	2.97%	12.26%	-6.93%
CPF	71 Outperform	$787.70M	13.63	10.94%	3.70%	4.38%	4.94%
MCBS	70 Outperform	$755.69M	11.53	16.05%	3.09%	10.06%	30.39%
Sector *	67 Neutral	$16.89B	11.80	9.79%	3.77%	12.07%	-8.35%

Central Pacific Financial Corporate Events

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.

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.

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.