Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $404.42M
• Dividend Yield: 2.11%
• Average Volume (3M): 50.84K
• Price to Earnings (P/E): 11.9
• Beta (1Y): 0.89
• Revenue Growth: 32.03%
• EPS Growth: 170.90%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.57
• Shares Outstanding: 19,130,508
• 10 Day Avg. Volume: 49,610
• 30 Day Avg. Volume: 50,841
• PEG Ratio: -0.54
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 2.01
• P/FCF Ratio: 19.27
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $23.00
• Price Target Upside: 1.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $25.00 ▲(10.04% Upside)

Community West Bancshares demonstrates a strong financial performance with solid revenue growth and profitability improvements. The technical indicators suggest a positive trend, though caution is advised due to potential overbought conditions. The valuation is attractive with a reasonable P/E ratio and a good dividend yield, making it a stable investment option in the regional banking sector.

Positive Factors

Revenue Growth

Sustained revenue growth indicates effective market strategies and product demand, strengthening the company's competitive position in the regional banking sector.

Cash Flow Generation

Strong cash flow generation supports operational flexibility and investment capacity, enhancing long-term financial stability and growth potential.

Strategic Partnerships

These partnerships facilitate portfolio diversification and market expansion, bolstering revenue streams and competitive advantages in the banking industry.

Negative Factors

Low Return on Equity

Low ROE may indicate inefficiencies in capital utilization, potentially limiting shareholder value creation and necessitating strategic adjustments.

Increased Loan Loss Provisions

Rising loan loss provisions can strain profitability and signal potential credit risk, impacting financial performance and necessitating cautious risk management.

Moderate Leverage

While moderate leverage is manageable, it requires careful monitoring to ensure it doesn't escalate, potentially affecting financial flexibility and risk profile.

Community West Bancshares Business Overview & Revenue Model

Company Description

Community West Bancshares (CWBC) is a financial holding company based in California that operates through its primary subsidiary, Community West Bank. The company provides a range of banking services, including commercial and retail banking, mortgage lending, and treasury management services. CWBC primarily serves individuals, small to medium-sized businesses, and non-profit organizations in its local markets, focusing on building strong community relationships and providing personalized financial solutions.

How the Company Makes Money

Community West Bancshares generates revenue primarily through interest income from loans and investment securities, as well as non-interest income from various banking fees and services. The key revenue streams include interest earned on commercial and residential loans, which constitute a significant portion of the bank's income, and fees from deposit accounts, ATM services, and transaction services. Additionally, CWBC may earn revenue from mortgage origination and servicing fees. The company's financial performance is also supported by its strategic partnerships with local businesses and community organizations, which enhance its customer base and drive loan growth.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares shows strong revenue growth and improved profitability with a net profit margin of 14.05%. The reduction in leverage and enhanced return on equity are positive, though operational efficiency and cash conversion need improvement.

Income Statement

Community West Bancshares has demonstrated strong revenue growth with a TTM increase of 1.92% and consistent gross profit margins above 60%. The net profit margin has improved significantly to 14.05% in the TTM, indicating enhanced profitability. However, the EBIT and EBITDA margins have shown some volatility, suggesting potential operational efficiency challenges.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.41 in the TTM, reflecting a reduction in leverage. Return on equity has increased to 7.15%, indicating better utilization of equity. However, the equity ratio remains moderate, suggesting a balanced but cautious approach to leveraging assets.

Cash Flow

Free cash flow has grown by 19.24% in the TTM, showing strong cash generation capabilities. The operating cash flow to net income ratio is low, indicating potential challenges in converting income to cash. The free cash flow to net income ratio is healthy at 84.25%, reflecting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	187.93M	164.20M	108.10M	86.66M	81.45M	78.05M
Gross Profit	130.44M	103.06M	87.80M	82.24M	84.58M	73.18M
EBITDA	37.42M	13.20M	34.73M	35.90M	47.02M	32.76M
Net Income	26.41M	7.67M	25.54M	26.64M	28.40M	20.35M
Balance Sheet
Total Assets	3.58B	3.52B	2.43B	2.42B	2.45B	2.00B
Cash, Cash Equivalents and Short-Term Investments	603.73M	423.81M	461.75M	680.00M	1.27B	780.37M
Total Debt	155.96M	203.33M	149.74M	115.60M	39.45M	14.04M
Total Liabilities	3.20B	3.16B	2.23B	2.25B	2.20B	1.76B
Stockholders Equity	380.00M	362.69M	207.06M	174.66M	247.84M	245.02M
Cash Flow
Free Cash Flow	29.06M	17.16M	17.72M	23.31M	41.81M	15.51M
Operating Cash Flow	34.49M	22.20M	27.53M	23.67M	42.85M	16.99M
Investing Cash Flow	-55.42M	64.47M	24.52M	-197.07M	-365.14M	-372.61M
Financing Cash Flow	45.64M	-20.00M	-29.49M	41.10M	415.47M	373.32M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.72
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 22.72 is above the 20-day moving average (MA) of 21.60, above the 50-day MA of 21.14, and above the 200-day MA of 19.29, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 70.05 is Negative, neither overbought nor oversold. The STOCH value of 77.44 is Neutral, 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	70 Outperform	$399.89M	9.60	10.03%	1.51%	9.76%	4.43%
CWBC	70 Outperform	$404.42M	11.87	8.91%	2.11%	32.03%	170.90%
OBT	70 Outperform	$335.41M	8.30	15.69%	1.96%	8.90%	18.23%
BMRC	70 Neutral	$420.06M	42.24	2.24%	3.70%	23.93%	―
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
CIVB	63 Neutral	$440.33M	8.52	9.73%	2.98%	3.49%	33.86%
MSBI	55 Neutral	$348.36M	-2.68	-17.52%	7.80%	12.76%	-401.62%

Community West Bancshares Corporate Events

Community West Bancshares Reports Q3 2025 Income Surge

Community West Bancshares reported a significant increase in net income for the third quarter of 2025, with earnings reaching $10.87 million, compared to $3.39 million in the same period in 2024. The company declared a $0.12 per share cash dividend, reflecting strong financial performance and a commitment to delivering long-term value to shareholders.

The most recent analyst rating on (CWBC) stock is a Hold with a $22.50 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 with Investors in Chicago

On September 3 and 4, 2025, Community West Bancshares‘ executive management will engage with investors at the Raymond James U.S. Bank and Banking on Technology Conferences in Chicago, Illinois. This engagement aims to present the company’s financial highlights and strategic direction, potentially impacting investor perceptions and the company’s market positioning. The company’s recent financial performance shows growth in total assets and net income, indicating a strengthening position in the market.

The most recent analyst rating on (CWBC) stock is a Buy with a $22.50 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares Highlights Growth at KBW Conference

On July 29-30, 2025, Community West Bancshares‘ executive management participated in the 26th Annual KBW Community Bank Investor Conference in New York to engage with investors. The company’s financial highlights show a significant increase in total assets and net income compared to previous years, indicating strong growth and financial health. The participation in the conference is likely aimed at strengthening investor relations and showcasing the company’s robust performance and strategic positioning in the competitive banking sector.

The most recent analyst rating on (CWBC) stock is a Buy with a $24.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.