East West Bancorp (EWBC) AI Stock Analysis

• Market Cap: $15.87B
• Dividend Yield: 2.08%
• Average Volume (3M): 616.38K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 1.04
• Revenue Growth: 3.87%
• EPS Growth: 14.61%
• Country: US
• Employees: 3,100
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 2.65
• Shares Outstanding: 137,585,600
• 10 Day Avg. Volume: 917,180
• 30 Day Avg. Volume: 616,379
• PEG Ratio: 5.87
• Price to Book (P/B): 1.72
• Price to Sales (P/S): 2.97
• P/FCF Ratio: 9.42
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 3.72
• Enterprise Value/Gross Profit: 6.52
• Enterprise Value/Ebitda: 8.94
• 1Y Price Target: $128.44
• Price Target Upside: 10.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 9.46
• Revenue Forecast (FY): $2.91B

• Rating: 79 Outperform
• Price Target: $126.00 ▲(8.61% Upside)

East West Bancorp's overall stock score reflects its strong financial performance, positive technical indicators, and robust earnings call results. The company's consistent revenue growth and solid profitability margins are significant strengths, while the technical analysis suggests bullish momentum. The valuation is reasonable, and the earnings call provided a positive outlook despite some economic uncertainties.

Positive Factors

Revenue Growth

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

Fee Income Expansion

Growing fee income diversifies revenue streams, reducing reliance on interest income and enhancing profitability.

Strong Asset Quality

Maintaining strong asset quality minimizes credit risk, ensuring financial resilience and protecting shareholder value.

Negative Factors

Cash Flow Challenges

Declining cash flow growth can strain liquidity, limiting investment capacity and operational flexibility over time.

Economic Uncertainty

Economic uncertainties pose risks to future performance, potentially impacting growth and financial stability.

Increased Credit Loss Allowance

Rising credit loss provisions indicate caution, potentially affecting profitability if economic conditions worsen.

East West Bancorp Business Overview & Revenue Model

Company Description

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals. It operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits. Its loan products include mortgage and home equity, commercial and residential real estate, working capital lines of credit, construction, trade finance, letters of credit, commercial business, affordable housing loans, asset-based lending, asset-backed finance, project finance, and equipment financing, as well as financing services to clients needing a financial bridge to facilitate their business transactions between the United States and China. The company also provides various wealth management, treasury management, foreign exchange, and interest rate and commodity risk hedging services; and mobile and online banking services. As of January 27, 2022, it operated approximately 120 locations in the United States and China; full-service branches in Hong Kong, Shanghai, Shantou, and Shenzhen; and representative offices in Beijing, Chongqing, Guangzhou, Taipei, and Xiamen. East West Bancorp, Inc. was incorporated in 1998 and is headquartered in Pasadena, California.

How the Company Makes Money

East West Bancorp generates revenue primarily through net interest income, which is the difference between the interest earned on loans and the interest paid on deposits. The bank offers various loan products, including commercial real estate loans, small business loans, and personal loans, which contribute significantly to its earnings. Additionally, East West Bancorp earns non-interest income through fees associated with deposit accounts, service charges, treasury management services, and foreign exchange transactions. The bank's strategic partnerships and strong presence in Asian markets enhance its ability to facilitate international trade and investment, further contributing to its revenue stream. Overall, the bank's diversified financial services and emphasis on cross-border banking play a crucial role in its profitability.

East West Bancorp Financial Statement Overview

Summary

East West Bancorp exhibits strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with improved leverage, though the cash flow statement highlights potential challenges in cash generation. Overall, the company is well-positioned but should focus on enhancing cash flow efficiency to sustain long-term growth.

Income Statement

East West Bancorp demonstrates strong profitability with a consistent increase in revenue over the years, highlighted by a TTM revenue growth rate of 2.35%. The company maintains healthy margins, with a TTM gross profit margin of 57.05% and a net profit margin of 27.14%. EBIT and EBITDA margins are also robust, indicating efficient operations. However, the slight decline in gross profit margin from previous years suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a manageable debt-to-equity ratio of 0.38 in the TTM period, showing a decrease from previous years, which indicates improved leverage management. The return on equity is strong at 15.56%, suggesting effective use of equity capital. However, the equity ratio is not explicitly provided, which could offer additional insights into asset financing.

Cash Flow

The cash flow statement shows a significant decline in free cash flow growth at -65.34% in the TTM period, which is a concern. The operating cash flow to net income ratio is low at 0.02, indicating potential issues in cash generation relative to net income. Despite this, the free cash flow to net income ratio remains stable at 1.0, suggesting that free cash flow is still covering net income adequately.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.65B	4.48B	3.95B	2.59B	1.89B	1.82B
Gross Profit	2.65B	2.39B	2.44B	2.25B	1.84B	1.39B
EBITDA	1.93B	1.68B	1.62B	1.57B	1.21B	805.67M
Net Income	1.26B	1.17B	1.16B	1.13B	872.98M	567.80M
Balance Sheet
Total Assets	79.67B	75.98B	69.61B	64.11B	60.87B	52.16B
Cash, Cash Equivalents and Short-Term Investments	5.27B	5.48B	10.81B	9.66B	14.61B	10.37B
Total Debt	3.18B	3.75B	4.76B	564.33M	806.86M	1.23B
Total Liabilities	71.09B	68.25B	62.66B	58.13B	55.03B	46.89B
Stockholders Equity	8.58B	7.72B	6.95B	5.98B	5.84B	5.27B
Cash Flow
Free Cash Flow	1.29B	1.41B	1.42B	2.07B	1.16B	690.67M
Operating Cash Flow	1.29B	1.41B	1.42B	2.07B	1.17B	693.33M
Investing Cash Flow	-5.44B	-6.30B	-4.25B	-4.58B	-9.12B	-6.87B
Financing Cash Flow	4.01B	5.53B	3.96B	2.11B	7.84B	6.91B

East West Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 116.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWBC, the sentiment is Positive. The current price of 116.01 is above the 20-day moving average (MA) of 112.35, above the 50-day MA of 105.91, and above the 200-day MA of 98.40, indicating a bullish trend. The MACD of 2.82 indicates Negative momentum. The RSI at 68.49 is Neutral, neither overbought nor oversold. The STOCH value of 68.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWBC.

East West Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTB	82 Outperform	$2.09B	9.36	20.99%	3.70%	-0.09%	18.47%
NWG	81 Outperform	$69.81B	10.23	14.58%	3.67%	7.43%	30.31%
EWBC	79 Outperform	$15.87B	12.73	15.54%	2.08%	3.87%	14.61%
BCS	77 Outperform	$87.83B	11.75	9.44%	1.71%	17.50%	49.25%
BBVA	76 Outperform	$133.69B	11.76	18.00%	3.27%	7.52%	10.40%
ING	72 Outperform	$82.74B	12.68	11.71%	4.14%	2.20%	-0.17%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

East West Bancorp Corporate Events

East West Bancorp Reports Record Q3 2025 Results

On October 21, 2025, East West Bancorp reported record financial results for the third quarter of 2025, with a net income of $368 million and earnings per share of $2.65. The company achieved record levels of revenue, driven by deposit-led growth and strong performance in wealth management, lending, and deposit account fees. Despite the uncertain outlook for 2026, East West Bancorp has strengthened its allowance for loan losses and maintains a robust capital position, enabling it to capitalize on market opportunities.