Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $404.48M
• Dividend Yield: 2.31%
• Average Volume (3M): 76.44K
• Price to Earnings (P/E): 33.0
• Beta (1Y): 0.88
• Revenue Growth: 69.35%
• EPS Growth: -65.75%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.44
• Shares Outstanding: 19,061,344
• 10 Day Avg. Volume: 133,957
• 30 Day Avg. Volume: 76,444
• PEG Ratio: 1.14
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.21
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 5.85
• 1Y Price Target: $20.00
• Price Target Upside: -5.75% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 54 Neutral
• Price Target: $21.00 ▼(-1.04%Downside)

Community West Bancshares presents a strong financial foundation with robust cash flow management and revenue growth. However, technical indicators suggest the stock may be overbought, and the high P/E ratio indicates potential overvaluation. The company's proactive investor relations strategy is positive but does not directly affect the score.

Community West Bancshares Business Overview & Revenue Model

Company Description

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit; and cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and their owners, professionals, high-net worth individuals, and non-profit organizations. It operates through a network of seven branch banking offices in Goleta, Santa Barbara, Santa Maria, Ventura, San Luis Obispo, Oxnard, and Paso Robles. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California.

How the Company Makes Money

Community West Bancshares makes money primarily through interest income and non-interest income. Interest income is generated from loans extended to businesses and individuals, including commercial, agricultural, real estate, and consumer loans. The bank earns money from the difference between the interest it pays on deposits and the interest it charges on loans. Non-interest income comes from fees and service charges related to deposit accounts, loan servicing fees, and other ancillary banking services. Additionally, the bank may engage in investments to generate additional income. Its earnings are influenced by factors such as interest rate fluctuations, loan demand, and the economic conditions of the regions it serves.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares demonstrates strong revenue growth and improved leverage. However, declining profitability margins and cash flows pose potential risks. The balance sheet is more stable, but the company's profitability and cash flow trends warrant close observation.

Income Statement

The company's revenue has shown strong growth with a 98.5% increase from 2023 to 2024. Gross profit margin is excellent at 100% due to the nature of the banking industry. However, the net profit margin has decreased significantly from 44.4% in 2023 to 6.7% in 2024, indicating lower profitability. EBIT is not available for 2024, which limits margin analysis.

Balance Sheet

The debt-to-equity ratio decreased to 0.56 in 2024 from 0.77 in 2023, reflecting improved capital structure. Return on equity (ROE) declined from 12.33% to 2.11%, which is a concern. The equity ratio improved to 10.3% from 8.5%. Overall, the balance sheet shows improved leverage but weaker profitability.

Cash Flow

Operating cash flow decreased by 20.3% in 2024, and free cash flow decreased slightly by 4.9%. The operating cash flow to net income ratio is 2.9, indicating strong cash generation relative to net income, but the decline in cash flows should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	184.38M	164.20M	108.10M	86.66M	81.45M	78.05M
Gross Profit	117.46M	103.06M	87.80M	82.24M	84.58M	73.18M
EBITDA	20.19M	13.20M	34.73M	35.90M	47.02M	32.76M
Net Income	12.28M	7.67M	25.54M	26.64M	28.40M	20.35M
Balance Sheet
Total Assets	3.55B	3.52B	2.43B	2.42B	2.45B	2.00B
Cash, Cash Equivalents and Short-Term Investments	617.42M	423.81M	461.75M	680.00M	1.27B	780.37M
Total Debt	204.30M	203.33M	149.74M	115.60M	39.45M	14.04M
Total Liabilities	3.18B	3.16B	2.23B	2.25B	2.20B	1.76B
Stockholders Equity	371.94M	362.69M	207.06M	174.66M	247.84M	245.02M
Cash Flow
Free Cash Flow	24.37M	17.16M	17.72M	23.31M	41.81M	15.51M
Operating Cash Flow	29.29M	22.20M	27.53M	23.67M	42.85M	16.99M
Investing Cash Flow	37.32M	64.47M	24.52M	-197.07M	-365.14M	-372.61M
Financing Cash Flow	20.83M	-20.00M	-29.49M	41.10M	415.47M	373.32M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.22
• 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 CWBC, the sentiment is Positive. The current price of 21.22 is above the 20-day moving average (MA) of 18.88, above the 50-day MA of 18.27, and above the 200-day MA of 18.81, indicating a bullish trend. The MACD of 0.67 indicates Negative momentum. The RSI at 82.29 is Negative, neither overbought nor oversold. The STOCH value of 97.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWBC.

Community West Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	79 Outperform	$405.92M	10.44	9.81%	1.49%	18.63%	37.17%
HBCP	78 Outperform	$430.71M	11.57	9.85%	1.96%	9.82%	0.91%
RRBI	78 Outperform	$428.40M	12.05	11.51%	0.76%	10.47%	13.63%
WTBA	73 Outperform	$356.91M	13.70	11.30%	4.83%	12.93%	17.25%
Sector *	67 Neutral	¥718.51B	10.84	7.44%	3.36%	7.82%	15.26%
BMRC	66 Neutral	$416.75M	―	-1.47%	3.94%	-15.92%	-147.11%
CWBC	54 Neutral	$404.48M	32.98	4.21%	2.31%	69.35%	-65.75%

Community West Bancshares Corporate Events

Community West Bancshares Holds Annual Shareholder Meeting

On May 21, 2025, Community West Bancshares held its Annual Meeting of Shareholders, where 78.93% of the issued and outstanding shares were represented. During the meeting, directors were elected to serve until the 2026 Annual Meeting, the 2025 Omnibus Incentive Plan was approved, the appointment of Moss Adams LLP as the independent registered public accounting firm for 2025 was ratified, and a non-binding advisory resolution approving executive compensation was adopted.

The most recent analyst rating on (CWBC) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares Engages Investors at Conference

On May 6-7, 2025, Community West Bancshares‘ executive management will engage with investors at the D.A. Davidson Financial Institutions Conference in Scottsdale, Arizona. This meeting signifies an opportunity for the company to present its strategic vision and operational updates to potential investors, potentially impacting its market positioning and stakeholder relations.

Community West Bancshares Engages in Investor Roadshow

On April 8-9, 2025, Community West Bancshares‘ executive management participated in a non-deal investor roadshow with Raymond James in New York and Boston. This event was part of their ongoing efforts to engage with investors and provide updates on the company’s financial performance and strategic initiatives. The roadshow reflects the company’s proactive approach to investor relations and its commitment to transparency and growth, as evidenced by its financial highlights, including a significant increase in total assets and a strong net interest margin.