Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $406.33M
• Dividend Yield: 2.28%
• Average Volume (3M): 41.51K
• Price to Earnings (P/E): 15.3
• Beta (1Y): 0.83
• Revenue Growth: 48.19%
• EPS Growth: 36.25%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 19,130,508
• 10 Day Avg. Volume: 39,416
• 30 Day Avg. Volume: 41,505
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 2.60
• Enterprise Value/Gross Profit: 4.08
• Enterprise Value/Ebitda: 23.74
• 1Y Price Target: $22.83
• Price Target Upside: 8.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: $22.50 ▲(6.79% Upside)

Community West Bancshares receives a strong overall score driven by solid financial performance and positive corporate events. The technical analysis supports a bullish outlook, while the valuation is fair. The absence of earnings call data limits additional insights, but the company's strategic initiatives and financial stability position it well for future growth.

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 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 loans, which constitutes a significant portion of its earnings. The bank provides various loan products, including commercial real estate loans, construction loans, and consumer loans, earning interest on these products over time. Additionally, the company earns fee income from services such as deposit accounts, treasury services, and other banking-related fees. This diversified revenue model allows CWBC to capitalize on both interest and non-interest income streams. Furthermore, strategic partnerships with local businesses and real estate developers enable CWBC to expand its lending portfolio and enhance its market presence, contributing positively to its overall financial performance.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares presents a strong financial position with consistent revenue and profit growth. The income statement reflects efficient operations and profitability, while the balance sheet shows reasonable leverage and stability. Cash flow analysis indicates effective cash management, although improvements in return on equity could enhance shareholder value.

Income Statement

Community West Bancshares has shown strong revenue growth with a current TTM revenue increase of 12.3% compared to the previous year. The gross profit margin stands at 63.7%, indicating efficient cost management. Net profit margin is solid at 6.7%, reflecting good profitability. Both EBIT and EBITDA margins are healthy, demonstrating strong operational performance.

Balance Sheet

The balance sheet is stable with an equity ratio of 10.5%, which is reasonable for a regional bank. The debt-to-equity ratio is 0.55, indicating moderate leverage. Return on equity is at 3.3%, which is relatively low, suggesting room for improvement in generating returns for shareholders.

Cash Flow

Cash flow performance is robust with operating cash flow to net income ratio at 2.38, indicating strong cash generation relative to earnings. Free cash flow growth is impressive at 42%, highlighting effective cash management. However, the free cash flow to net income ratio of 1.99 suggests some variability in cash conversion efficiency.

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: 21.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 21.07 is above the 20-day moving average (MA) of 20.87, above the 50-day MA of 20.37, and above the 200-day MA of 18.96, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 61.24 is Neutral, neither overbought nor oversold. The STOCH value of 30.00 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
CIVB	81 Outperform	$406.73M	8.33	10.02%	3.22%	6.20%	18.80%
FRBA	80 Outperform	$425.02M	11.02	9.40%	1.44%	11.18%	24.61%
CWBC	77 Outperform	$406.33M	15.29	7.23%	2.28%	48.19%	36.25%
OBT	74 Outperform	$355.99M	10.17	13.74%	1.93%	6.60%	-16.86%
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
BMRC	66 Neutral	$403.46M	58.04	1.58%	4.05%	23.26%	―
MSBI	53 Neutral	$392.09M	10.95	-16.48%	7.00%	14.49%	-380.35%

Community West Bancshares Corporate Events

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.

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.

Community West Bancshares Announces Cash Dividend and Buyback

On July 16, 2025, Community West Bancshares announced a $0.12 per share cash dividend payable on August 15, 2025, and the initiation of a share repurchase program for up to 3% of its outstanding common stock, beginning on July 22, 2025. The company reported a net income of $7.8 million for the second quarter of 2025, a decrease from the previous quarter due to increased provisions for loan losses. Despite economic uncertainties, the company remains well-positioned with strong capital and liquidity, reflecting positive operational momentum and stability.