CW Bancorp (CWBK) AI Stock Analysis

• Market Cap: $121.08M
• Dividend Yield: 2.54%
• Average Volume (3M): 542.00
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.24
• Revenue Growth: 6.54%
• EPS Growth: 3.12%
• Country: US
• Employees: 47
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.17
• Shares Outstanding: 3,353,158
• 10 Day Avg. Volume: 150
• 30 Day Avg. Volume: 542
• PEG Ratio: -0.40
• Price to Book (P/B): 1.28
• Price to Sales (P/S): 1.79
• P/FCF Ratio: 7.85
• Enterprise Value/Market Cap: 0.22
• Enterprise Value/Revenue: 0.43
• Enterprise Value/Gross Profit: 0.56
• Enterprise Value/Ebitda: 1.46
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $38.00 ▲(5.29% Upside)

CWBK's overall score is driven by its strong valuation, reflecting an attractive P/E ratio and a solid dividend yield. Financial performance is stable, with strong revenue growth but challenges in profitability and liquidity. Technical analysis indicates a neutral market sentiment, with no significant momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, contributing to long-term financial stability.

Balance Sheet Stability

A stable debt-to-equity ratio reflects prudent financial management, enhancing the company's resilience against economic fluctuations.

Cash Conversion Efficiency

Efficient cash conversion supports ongoing operations and investment opportunities, underpinning long-term growth potential.

Negative Factors

Declining Profit Margins

Decreasing profit margins may signal rising costs or operational inefficiencies, potentially impacting future profitability.

Liquidity Concerns

Reduced operating cash flow can strain liquidity, limiting the company's ability to meet short-term obligations and invest in growth.

Profitability Challenges

Operational challenges reflected in declining margins may hinder the company's ability to sustain profitability and competitive positioning.

CW Bancorp Business Overview & Revenue Model

Company Description

CW Bancorp operates as a holding company for CommerceWest Bank that provides various commercial banking services for small and mid-sized businesses in California. The company offers personal checking account, checking account, money market deposit account, savings account, sweep accounts, business accounts, attorney client trust accounts, and personal certificate of deposits It also provides loans, including lines of credit, commercial real estate loan, asset based, mergers and acquisitions, international, and term loan. In addition, the company offers remote deposit solutions; and online banking, mobile banking, and treasury management services. CW Bancorp was founded in 2001 and is headquartered in Irvine, California.

How the Company Makes Money

CW Bancorp generates revenue primarily through interest income from loans and investments, as well as non-interest income from service fees and other financial services. The key revenue streams include interest earned on commercial and residential loans, which are often the largest source of income for the bank, along with interest from securities and other investment portfolios. Additionally, the bank earns fees from various services such as account maintenance, transaction processing, treasury management, and financial advisory services. Strategic partnerships with local businesses and community organizations also contribute to its customer base and revenue generation, enabling CW Bancorp to expand its market presence and enhance its service offerings.

CW Bancorp Financial Statement Overview

Summary

CW Bancorp shows strong revenue growth and a stable balance sheet with efficient cost management. However, declining net profit and EBIT margins indicate potential operational challenges, and liquidity concerns arise from reduced operating cash flow.

Income Statement

CW Bancorp has demonstrated consistent revenue growth, with a 3.87% increase in the latest year. The gross profit margin remains strong at 76.40%, indicating efficient cost management. However, the net profit margin has decreased to 21.83% from previous years, suggesting increased expenses or reduced operational efficiency. The EBIT and EBITDA margins have also declined, reflecting potential challenges in maintaining operational profitability.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.63, indicating a stable leverage position. Return on equity is healthy at 15.57%, though it has decreased from previous years, suggesting a slight decline in profitability relative to equity. The equity ratio remains robust, reflecting a solid capital structure. Overall, the balance sheet shows stability but with a need for improved profitability.

Cash Flow

Operating cash flow has decreased, impacting the operating cash flow to net income ratio, which stands at 0.01. Free cash flow growth is strong, but the free cash flow to net income ratio is nearly 1, indicating efficient cash conversion. However, the decline in operating cash flow coverage suggests potential liquidity challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	62.03M	60.36M	58.57M	47.38M	36.36M	35.18M
Gross Profit	47.40M	46.12M	48.42M	42.19M	33.81M	26.66M
EBITDA	18.27M	18.60M	24.68M	24.36M	18.76M	12.37M
Net Income	13.11M	13.17M	17.61M	17.36M	14.18M	9.09M
Balance Sheet
Total Assets	1.18B	1.49B	1.30B	1.44B	1.37B	1.32B
Cash, Cash Equivalents and Short-Term Investments	314.88M	580.25M	498.27M	563.04M	548.59M	715.36M
Total Debt	52.75M	53.04M	53.72M	54.36M	54.79M	173.00K
Total Liabilities	1.09B	1.41B	1.22B	1.37B	1.29B	1.25B
Stockholders Equity	89.42M	84.59M	78.86M	69.62M	73.53M	70.21M
Cash Flow
Free Cash Flow	0.00	13.74M	17.37M	20.98M	11.61M	14.77M
Operating Cash Flow	0.00	13.79M	17.68M	20.99M	12.71M	15.04M
Investing Cash Flow	0.00	-74.89M	87.63M	-47.78M	-281.55M	-158.71M
Financing Cash Flow	0.00	177.30M	-156.27M	67.60M	28.42M	422.90M

CW Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.09
• 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 CWBK, the sentiment is Positive. The current price of 36.09 is below the 20-day moving average (MA) of 36.09, above the 50-day MA of 35.60, and above the 200-day MA of 34.22, indicating a bullish trend. The MACD of 0.09 indicates Positive momentum. The RSI at 54.25 is Neutral, neither overbought nor oversold. The STOCH value of 35.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWBK.

CW Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FNWD	73 Outperform	$158.56M	19.49	5.05%	0.97%	-7.20%	-29.17%
CWBK	71 Outperform	$121.08M	8.83	15.46%	2.54%	6.54%	3.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$129.32M	45.90	1.57%	0.88%	9.43%	166.36%
AFBI	64 Neutral	$124.40M	15.54	5.95%	―	5.18%	36.12%
SFBC	64 Neutral	$112.65M	15.85	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$107.28M	22.30	2.90%	1.51%	8.77%	369.81%