Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $354.92M
• Dividend Yield: 2.63%
• Average Volume (3M): 47.55K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 0.86
• Revenue Growth: 69.35%
• EPS Growth: -65.75%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.44
• Shares Outstanding: 19,061,344
• 10 Day Avg. Volume: 55,233
• 30 Day Avg. Volume: 47,548
• PEG Ratio: 0.15
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.00
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 0.74
• Enterprise Value/Ebitda: 1.61
• 1Y Price Target: $20.00
• Price Target Upside: 9.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 68 Neutral
• Price Target: $20.50 ▲(12.45%Upside)

The overall stock score of 68 reflects strong financial performance with notable revenue growth and improved leverage. Positive corporate events also support the score. However, concerns arise from declining profitability and cash flows, alongside a high valuation suggesting potential overvaluation in the banking industry.

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 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 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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
164.20M	57.52M	49.79M	46.13M	40.50M
	Gross Profit
103.06M	9.88M	49.79M	46.13M	40.50M
	EBIT
11.00M	-10.30M	20.29M	18.31M	12.32M
	EBITDA
22.81M	34.73M	35.90M	47.02M	0.00
	Net Income Common Stockholders
7.67M	25.54M	13.45M	13.10M	8.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
423.81M	16.70M	64.69M	228.09M	77.85M
	Total Assets
3.52B	2.43B	1.09B	1.16B	975.43M
	Total Debt
203.33M	158.86M	90.00M	90.00M	105.00M
	Net Debt
82.93M	105.14M	25.31M	-118.38M	44.46M
	Total Liabilities
3.16B	2.23B	978.85M	90.00M	105.00M
	Stockholders Equity
362.69M	207.06M	112.65M	101.38M	89.01M
Cash Flow		Free Cash Flow
17.16M	18.05M	5.62M	22.01M	15.51M
	Operating Cash Flow
22.20M	27.85M	5.86M	22.22M	15.84M
	Investing Cash Flow
64.47M	24.19M	-72.89M	-42.22M	-91.57M
	Financing Cash Flow
-20.00M	-29.49M	-76.65M	167.84M	53.60M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 18.23 is above the 20-day moving average (MA) of 18.08, above the 50-day MA of 17.52, and below the 200-day MA of 18.86, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 53.92 is Neutral, neither overbought nor oversold. The STOCH value of 77.66 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
RRBI	78 Outperform	$383.49M	10.58	11.51%	0.85%	10.47%	13.63%
HBCP	76 Outperform	$396.39M	10.26	9.85%	2.20%	9.82%	0.91%
FRBA	74 Outperform	$376.26M	9.44	9.81%	1.64%	18.63%	37.17%
WTBA	72 Outperform	$318.67M	12.23	11.30%	5.31%	12.93%	17.25%
CWBC	68 Neutral	$354.92M	28.33	4.21%	2.63%	69.35%	-65.75%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%
BMRC	57 Neutral	$364.70M	―	-1.47%	4.57%	-15.92%	-147.11%

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.

Community West Bancshares Appoints New Chief Credit Officer

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.