Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $460.95M
• Dividend Yield: 2%
• Average Volume (3M): 50.84K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.78
• 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: 19,158,428
• 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: 0.97
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.44
• Enterprise Value/Ebitda: 11.97
• 1Y Price Target: $23.00
• Price Target Upside: -4.41% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $26.00 ▲(8.06% Upside)

Community West Bancshares is positioned well with strong financial performance and technical indicators suggesting a bullish trend. The fair valuation supports the stock's current market price. The recent corporate event highlights strong financial results, further enhancing the stock's attractiveness.

Positive Factors

Revenue Growth

Sustained revenue growth indicates robust demand for the company's services and effective market strategies, supporting long-term business expansion.

Leadership Transition

The leadership transition is expected to maintain stability and continuity, leveraging Kim’s existing experience, which is crucial for strategic consistency and long-term planning.

Profitability Improvement

Improved profitability enhances the company's ability to reinvest in growth opportunities and provides a buffer against economic downturns, ensuring financial resilience.

Negative Factors

Operational Efficiency Challenges

Volatility in operational margins suggests potential inefficiencies that could impact cost management and profitability, requiring strategic focus to stabilize.

Cash Conversion Challenges

Low cash conversion indicates potential difficulties in turning income into cash, which may affect liquidity and the ability to fund operations or investments.

Moderate Equity Ratio

A moderate equity ratio may limit the company's ability to leverage for growth, indicating a need for careful capital management to support expansion plans.

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: 24.06
• 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 24.06 is above the 20-day moving average (MA) of 22.93, above the 50-day MA of 21.77, and above the 200-day MA of 19.61, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 74.52 is Negative, neither overbought nor oversold. The STOCH value of 82.88 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
OBT	80 Outperform	$386.97M	9.57	15.69%	1.95%	8.90%	18.23%
BMRC	73 Outperform	$447.92M	44.96	2.24%	3.60%	23.93%	―
CWBC	71 Outperform	$460.95M	13.52	8.91%	2.00%	32.03%	170.90%
FRBA	70 Outperform	$443.87M	10.65	10.03%	1.36%	9.76%	4.43%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MSBI	66 Neutral	$467.46M	-3.59	-17.52%	5.90%	12.76%	-401.62%
CIVB	64 Neutral	$465.44M	9.01	9.73%	2.78%	3.49%	33.86%

Community West Bancshares Corporate Events

Community West Bancshares Announces Leadership Transition

On November 7, 2025, Martin E. Plourd announced his retirement as President of Community West Bancshares, effective March 31, 2026, after a 45-year career in banking. He will continue to serve as a director on the boards of both Community West Bancshares and Community West Bank. James J. Kim, currently CEO of the company and CEO and President of the bank, will assume the roles of CEO and President of both entities starting April 1, 2026. This leadership transition is expected to maintain stability and continuity within the company, leveraging Kim’s existing leadership experience.

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.