Central Pacific Financial (CPF) AI Stock Analysis

• Market Cap: $874.85M
• Dividend Yield: 3.34%
• Average Volume (3M): 138.22K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.87
• Revenue Growth: 1.22%
• EPS Growth: 15.97%
• Country: US
• Employees: 697
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.69
• Shares Outstanding: 26,827,513
• 10 Day Avg. Volume: 160,693
• 30 Day Avg. Volume: 138,220
• 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: 1.00
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 9.44
• 1Y Price Target: $35.50
• Price Target Upside: 8.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 2.78
• Revenue Forecast (FY): $291.61M

• Rating: 80 Outperform
• Price Target: $35.00 ▲(6.61% Upside)

Central Pacific Financial's strong financial performance and positive earnings call sentiment are the primary drivers of its high score. The stock's technical indicators support a bullish outlook, although some caution is warranted due to potential overbought conditions. The valuation is reasonable, and the attractive dividend yield adds to the stock's appeal. Challenges such as increased operating expenses and economic softness in Hawaii are noted but do not significantly detract from the overall positive outlook.

Positive Factors

Strong Financial Performance

The company's strong financial performance, with significant net income and growth in loans and deposits, indicates robust business operations and effective management, supporting long-term sustainability.

Strategic Partnerships

The partnership with Kyoto Shinkin Bank enhances business development opportunities between Hawaii and Japan, potentially expanding market reach and driving future growth.

Cash Generation Ability

Strong cash generation supports ongoing operations and future investments, indicating efficient cash management and financial stability.

Negative Factors

Economic Softness in Hawaii

Economic softness in Hawaii, particularly in tourism, could impact local market dynamics and CPF's revenue growth, posing a challenge to its regional focus.

Higher Operating Expenses

Increased operating expenses, due to one-time costs and incentives, may pressure profit margins and require careful cost management to maintain profitability.

Leadership Changes

Leadership changes can lead to strategic shifts and may impact company direction, requiring effective transition management to maintain stability.

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

Central Pacific Financial demonstrates strong profitability and efficient cash flow management, with a robust balance sheet characterized by low debt levels and effective equity utilization. However, the company faces challenges in revenue growth, which slightly tempers its financial performance score.

Income Statement

Central Pacific Financial shows a mixed performance in its income statement. The TTM data reveals a decline in revenue growth rate by 8.99%, indicating challenges in revenue generation. However, the company maintains a strong net profit margin of 20.92% and an impressive EBIT margin of 32.39%, showcasing operational efficiency. The gross profit margin has decreased significantly compared to previous years, which could be a concern. Overall, the company demonstrates profitability but faces revenue growth challenges.

Balance Sheet

The balance sheet of Central Pacific Financial is robust, with a low debt-to-equity ratio of 0.045 in the TTM, indicating prudent financial leverage. The return on equity stands at 11.71%, reflecting effective use of equity to generate profits. The equity ratio is strong, suggesting a stable financial foundation. The company has improved its debt management over the years, reducing potential risks associated with high leverage.

Cash Flow

Cash flow analysis shows positive trends, with a 10.30% growth in free cash flow in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is high at 3.93, suggesting strong cash flow relative to net income. The free cash flow to net income ratio is also healthy at 0.98, demonstrating efficient cash utilization. Overall, the company exhibits strong cash flow management, supporting its financial stability.

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: 32.83
• 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 32.83 is above the 20-day moving average (MA) of 30.49, above the 50-day MA of 29.51, and above the 200-day MA of 27.82, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 73.84 is Negative, neither overbought nor oversold. The STOCH value of 86.00 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
AMAL	82 Outperform	$973.83M	9.78	13.88%	1.70%	4.33%	-2.20%
CPF	80 Outperform	$874.85M	13.42	11.65%	3.34%	1.22%	15.97%
HBT	79 Outperform	$843.95M	10.85	13.78%	3.13%	3.86%	12.33%
HFWA	79 Outperform	$859.45M	15.25	6.43%	3.79%	8.27%	54.96%
MCB	74 Outperform	$820.03M	13.82	8.80%	0.38%	6.48%	8.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HBNC	58 Neutral	$940.35M	-4.62	-26.60%	3.49%	-78.64%	-913.67%

Central Pacific Financial Corporate Events

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.

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.

Central Pacific Financial Director Resigns Effective October 1

On September 30, 2025, A. Catherine Ngo, a long-serving director on the boards of Central Pacific Financial Corp. and its subsidiary Central Pacific Bank, announced her resignation effective October 1, 2025. Her departure is due to personal reasons and is not related to any disagreements with the company or the bank.