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Community West Bancshares (CWBC)
NASDAQ:CWBC
US Market

Community West Bancshares (CWBC) AI Stock Analysis

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Community West Bancshares

(NASDAQ:CWBC)

57Neutral
Community West Bancshares scores moderately due to strong revenue growth and improved leverage, but faces challenges with declining profitability and bearish technical indicators. Recent corporate events provide some optimism, but the high valuation limits upside potential.

Community West Bancshares (CWBC) vs. S&P 500 (SPY)

Community West Bancshares Business Overview & Revenue Model

Company DescriptionCommunity West Bancshares (CWBC) is a bank holding company headquartered in Goleta, California. It operates through its wholly-owned subsidiary, Community West Bank, which provides a range of financial services to individuals and businesses. The bank primarily focuses on offering commercial banking services, including lending, deposit products, and cash management services. Community West Bank serves the financial needs of the communities in the Central Coast area of California.
How the Company Makes MoneyCommunity West Bancshares generates revenue primarily through interest income from its loan portfolio. The bank offers various types of loans, including commercial real estate loans, commercial and industrial loans, and agricultural loans. In addition to interest income, the company earns revenue from fees associated with its deposit products and other financial services. Community West Bank also benefits from strategic partnerships and collaborations that enhance its service offerings and customer reach. The bank's ability to attract low-cost deposits is a significant factor in its earnings, as it allows for a lower cost of funds and higher net interest margins.

Community West Bancshares Financial Statement Overview

Summary
Community West Bancshares shows strong revenue growth and improved leverage, but declining profitability margins and cash flows pose potential risks. The balance sheet is stable, but profitability and cash flow trends warrant close observation.
Income Statement
70
Positive
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
75
Positive
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
65
Positive
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
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
114.17M57.52M49.79M46.13M40.50M
Gross Profit
114.17M9.88M49.79M46.13M40.50M
EBIT
0.00-10.30M22.04M18.31M11.76M
EBITDA
0.000.000.000.000.00
Net Income Common Stockholders
7.67M25.54M13.45M13.10M8.24M
Balance SheetCash, Cash Equivalents and Short-Term Investments
423.81M16.70M64.69M228.09M77.85M
Total Assets
3.52B2.43B1.09B1.16B975.43M
Total Debt
203.33M158.86M90.00M90.00M105.00M
Net Debt
82.93M105.14M25.31M-118.38M44.46M
Total Liabilities
3.16B2.23B978.85M90.00M105.00M
Stockholders Equity
362.69M207.06M112.65M101.38M89.01M
Cash FlowFree Cash Flow
17.16M18.05M5.62M22.01M15.51M
Operating Cash Flow
22.20M27.85M5.86M22.22M15.84M
Investing Cash Flow
64.47M24.19M-72.89M-42.22M-91.57M
Financing Cash Flow
-20.00M-29.49M-76.65M167.84M53.60M

Community West Bancshares Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.50
Price Trends
50DMA
17.75
Negative
100DMA
18.59
Negative
200DMA
19.07
Negative
Market Momentum
MACD
-0.09
Negative
RSI
55.47
Neutral
STOCH
86.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWBC, the sentiment is Negative. The current price of 17.5 is above the 20-day moving average (MA) of 16.67, below the 50-day MA of 17.75, and below the 200-day MA of 19.07, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 86.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWBC.

Community West Bancshares Risk Analysis

Community West Bancshares disclosed 46 risk factors in its most recent earnings report. Community West Bancshares reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Community West Bancshares Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
$398.32M10.409.85%2.05%9.82%0.91%
74
Outperform
$360.93M9.299.81%1.67%18.63%37.17%
72
Outperform
$329.83M12.6611.30%5.15%12.93%17.25%
65
Neutral
$357.18M10.6510.98%0.74%12.88%2.03%
63
Neutral
$12.46B9.568.14%17044.64%12.63%-4.25%
57
Neutral
$333.57M27.204.21%2.74%69.35%-65.75%
57
Neutral
$332.48M-1.47%4.87%-15.92%-147.11%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CWBC
Community West Bancshares
17.50
0.42
2.46%
BMRC
Bank Of Marin Bancorp
20.73
5.92
39.97%
HBCP
Home Bancorp
49.66
13.31
36.62%
WTBA
West Bancorporation
19.49
3.07
18.70%
FRBA
First Bank
14.36
2.39
19.97%
RRBI
Red River Bancshares
52.70
5.12
10.76%

Community West Bancshares Corporate Events

Business Operations and StrategyFinancial Disclosures
Community West Bancshares Engages in Investor Roadshow
Positive
Apr 16, 2025

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.

Spark’s Take on CWBC Stock

According to Spark, TipRanks’ AI Analyst, CWBC is a Neutral.

Community West Bancshares faces challenges with declining profitability and bearish technical indicators. However, strategic management changes and stable leverage provide some optimism. High valuation is a concern, potentially limiting upside.

To see Spark’s full report on CWBC stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Community West Bancshares Appoints New Chief Credit Officer
Positive
Mar 21, 2025

On March 17, 2025, Community West Bank appointed Hinson M. Thomas as Executive Vice President and Chief Credit Officer. With over 30 years of experience in credit risk management and commercial banking, Thomas will oversee the bank’s Credit Administration Division and manage company-wide credit quality. His appointment is expected to drive strategic growth and enhance the bank’s operations, aligning with its commitment to deliver outstanding results for stakeholders.

Executive/Board Changes
Community West Bancshares Chief Credit Officer Resigns
Neutral
Mar 5, 2025

Patrick A. Luis, Chief Credit Officer of Community West Bank, resigned effective February 28, 2025, without any disagreements with the company. He entered a Termination Agreement entitling him to wages, unused vacation pay, and an accelerated benefit, with provisions for his unvested shares to vest fully, and potential severance pay to ensure total benefits reach $380,000.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.