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Community West Bancshares
(NASDAQ:CWBC)
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Rating:66Neutral
Price Target:
$27.00
▲(8.00% Upside)
Action:Downgraded
Date:07/28/26
CWBC scores 66 mainly on a meaningful TTM financial rebound (stronger margins, improved leverage, and better cash flow support). The score is held back by weak near-term technical signals (price below 20/50-day averages) and mixed corporate-event impact tied to post-merger earnings pressure, while valuation is reasonable with a modest dividend yield.
Positive Factors
Profitability recovery and margin expansion
A material expansion in net and EBIT margins versus 2024 indicates the franchise has regained earnings power. Sustained higher margins support internal capital generation, improve ability to absorb credit losses, and provide a stronger foundation for lending growth and dividend continuity over the coming months.
Negative Factors
Historical earnings volatility
Significant swings in profitability across recent years indicate sensitivity to rate, credit and portfolio mix cycles. This variability undermines predictability for capital planning and increases execution risk for sustaining current margins and ROE absent continued favorable conditions or disciplined underwriting.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery and margin expansion
A material expansion in net and EBIT margins versus 2024 indicates the franchise has regained earnings power. Sustained higher margins support internal capital generation, improve ability to absorb credit losses, and provide a stronger foundation for lending growth and dividend continuity over the coming months.
Read all positive factors
Community West Bancshares (CWBC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$679.17M
Dividend Yield1.92%
Average Volume (3M)447.00K
Price to Earnings (P/E)13.5
Beta (1Y)0.81
Revenue Growth12.91%
EPS Growth33.31%
CountryUS
Employees327
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.17
Shares Outstanding27,134,207
10 Day Avg. Volume287,720
30 Day Avg. Volume447,000
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)1.04
Price to Sales (P/S)2.20
P/FCF Ratio9.80
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$29.75Price Target Upside19.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.99
Revenue Forecast (FY)$207.63M
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, mon...
How the Company Makes Money
Community West Bancshares makes money primarily through its banking subsidiary by earning interest income and fee-based revenue. The largest revenue driver for a community bank is typically net interest income: the bank collects interest on loans ...
Community West Bancshares Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 196.90M | 194.60M | 164.20M | 108.10M | 86.66M | 81.45M |
| Gross Profit | 144.55M | 141.32M | 103.06M | 87.80M | 82.24M | 84.58M |
| EBITDA | 61.44M | 56.81M | 13.20M | 34.73M | 35.90M | 47.02M |
| Net Income | 41.36M | 38.17M | 7.67M | 25.54M | 26.64M | 28.40M |
Balance Sheet | ||||||
| Total Assets | 3.70B | 3.69B | 3.52B | 2.43B | 2.42B | 2.45B |
| Cash, Cash Equivalents and Short-Term Investments | 37.92M | 118.98M | 423.81M | 461.75M | 680.00M | 1.27B |
| Total Debt | 103.18M | 142.53M | 203.33M | 149.74M | 115.60M | 39.45M |
| Total Liabilities | 3.28B | 3.28B | 3.16B | 2.23B | 2.25B | 2.20B |
| Stockholders Equity | 419.20M | 409.59M | 362.69M | 207.06M | 174.66M | 247.84M |
Cash Flow | ||||||
| Free Cash Flow | 41.06M | 43.61M | 17.16M | 17.72M | 23.31M | 41.81M |
| Operating Cash Flow | 45.98M | 46.12M | 22.20M | 27.53M | 23.67M | 42.85M |
| Investing Cash Flow | -165.73M | -160.51M | 64.47M | 24.52M | -197.07M | -365.14M |
| Financing Cash Flow | 101.69M | 112.97M | -20.00M | -29.49M | 41.10M | 415.47M |
Community West Bancshares Technical Analysis
Negative
25.00
Price Trends
25.70
Negative
24.51
Positive
23.56
Positive
Market Momentum
0.21
Positive
36.72
Neutral
18.36
Positive
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 25 is below the 20-day moving average (MA) of 26.49, below the 50-day MA of 25.70, and above the 200-day MA of 23.56, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 18.36 is Positive, 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 47 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $472.09M | 7.16 | 15.91% | 3.48% | -20.46% | -308.00% | |
78 Outperform | $685.11M | 11.45 | 10.59% | ― | -2.10% | 110.42% | |
77 Outperform | $284.96M | 11.93 | 11.75% | 1.82% | 2.09% | -3.47% | |
74 Outperform | $427.22M | 11.90 | 13.72% | 2.05% | 32.78% | 4.54% | |
73 Outperform | $533.11M | 11.85 | 12.38% | 2.44% | -1.11% | 17.59% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $679.17M | 13.46 | 7.90% | 1.92% | 12.91% | 33.31% |
* Financial Sector Average
CWBC
Community West Bancshares
25.03
6.43
34.56%
BMRC
Bank Of Marin Bancorp
29.16
7.74
36.15%
OVLY
Oak Valley Bancorp [Ca]
33.87
7.63
29.09%
PLBC
Plumas Bancorp
61.31
21.97
55.85%
BSRR
Sierra Bancorp
40.76
12.80
45.80%
BCAL
California BanCorp
21.30
6.55
44.40%
Community West Bancshares Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Community West Bancshares Highlights Growth at Investor Conference
Positive
Jul 27, 2026
On July 28–29, 2026, Community West Bancshares’ executive team planned to meet investors at the KBW Summer Bank Conference in New York, signaling an effort to highlight its expanded Central California franchise and recent merger activi...
Business Operations and StrategyDividendsFinancial DisclosuresM&A Transactions
Community West Bancshares Reports Lower Q2 Earnings Post-Merger
Negative
Jul 23, 2026
Community West Bancshares reported that for the quarter ended June 30, 2026, unaudited consolidated net income fell to $2.7 million, or $0.10 per diluted share, from $7.8 million and $0.41 a year earlier, largely due to merger-related costs, secur...
Executive/Board ChangesShareholder Meetings
Community West Bancshares Shareholders Approve Board and Governance Items
Positive
May 29, 2026
On May 27, 2026, Community West Bancshares held its Annual Meeting of Shareholders, with 19,578,840 shares represented, amounting to 72.23% of the shares entitled to vote. Shareholders elected the full slate of board-nominated directors to serve u...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.