Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $391.33M
• Dividend Yield: 2.34%
• Average Volume (3M): 86.99K
• Price to Earnings (P/E): 15.2
• Beta (1Y): 0.90
• Revenue Growth: 48.19%
• EPS Growth: 36.25%
• Country: US
• Employees: 342
• Sector: Financial
• Sector Strength: 72
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 19,061,344
• 10 Day Avg. Volume: 70,953
• 30 Day Avg. Volume: 86,986
• PEG Ratio: 1.29
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.99
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.72
• Enterprise Value/Gross Profit: 3.79
• Enterprise Value/Ebitda: 6.48
• 1Y Price Target: $23.00
• Price Target Upside: 12.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: $23.00 ▲(12.03%Upside)

Community West Bancshares scores well due to strong financial and technical performance, supported by positive corporate events like dividends and share buybacks. However, the high P/E ratio suggests valuation concerns, slightly offsetting the positive outlook.

Community West Bancshares Business Overview & Revenue Model

Company Description

Community West Bancshares (CWBC) is a bank holding company based in Goleta, California. It operates primarily through its wholly-owned subsidiary, Community West Bank, which provides a full range of commercial and retail banking services. The bank focuses on serving small to mid-sized businesses and individuals within its local community. Core services include commercial lending, agricultural loans, SBA lending, and various deposit products.

How the Company Makes Money

Community West Bancshares makes money primarily through interest income and non-interest income. Interest income is generated from loans extended to businesses and individuals, including commercial, agricultural, real estate, and consumer loans. The bank earns money from the difference between the interest it pays on deposits and the interest it charges on loans. Non-interest income comes from fees and service charges related to deposit accounts, loan servicing fees, and other ancillary banking services. Additionally, the bank may engage in investments to generate additional income. Its earnings are influenced by factors such as interest rate fluctuations, loan demand, and the economic conditions of the regions it serves.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares has demonstrated strong financial performance with a significant revenue growth of 12.3% and a solid net profit margin of 6.7%. The balance sheet is stable with moderate leverage, and cash flow management is effective, though return on equity could be improved.

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

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.53
• 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 20.53 is below the 20-day moving average (MA) of 20.54, above the 50-day MA of 19.14, and above the 200-day MA of 18.91, indicating a neutral trend. The MACD of 0.50 indicates Positive momentum. The RSI at 56.74 is Neutral, neither overbought nor oversold. The STOCH value of 68.21 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	79 Outperform	$388.33M	10.21	9.40%	1.59%	11.18%	24.61%
OBT	79 Outperform	$353.68M	11.42	14.76%	1.85%	6.08%	-23.52%
CWBC	76 Outperform	$391.33M	15.19	7.23%	2.34%	48.19%	36.25%
CIVB	73 Outperform	$393.20M	9.45	10.02%	3.16%	6.20%	18.80%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
BMRC	66 Neutral	$389.35M	―	-1.47%	4.16%	-15.92%	-147.11%
MSBI	62 Neutral	$387.27M	13.65	5.03%	6.89%	14.75%	-48.47%

Community West Bancshares Corporate Events

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.

The most recent analyst rating on (CWBC) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on Community West Bancshares stock, see the CWBC Stock Forecast page.

Community West Bancshares 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.