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EW

East West Banking PSE:EW Stock Report

Last Price

₱7.01

Market Cap

₱15.8b

7D

-0.1%

1Y

-27.4%

Updated

26 Jun, 2022

Data

Company Financials +
EW fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health4/6
Dividends0/6

EW Stock Overview

East West Banking Corporation, together with its subsidiaries, operates as a commercial bank that provides a range of financial services to individual and corporate clients in the Philippines.

East West Banking Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for East West Banking
Historical stock prices
Current Share Price₱7.01
52 Week High₱10.80
52 Week Low₱6.97
Beta0.86
1 Month Change-1.96%
3 Month Change-16.45%
1 Year Change-27.36%
3 Year Change-39.67%
5 Year Change-62.98%
Change since IPO-46.84%

Recent News & Updates

Shareholder Returns

EWPH BanksPH Market
7D-0.1%-4.4%-1.7%
1Y-27.4%0.6%-8.6%

Return vs Industry: EW underperformed the PH Banks industry which returned 0.6% over the past year.

Return vs Market: EW underperformed the PH Market which returned -8.6% over the past year.

Price Volatility

Is EW's price volatile compared to industry and market?
EW volatility
EW Average Weekly Movement2.1%
Banks Industry Average Movement3.9%
Market Average Movement5.3%
10% most volatile stocks in PH Market10.1%
10% least volatile stocks in PH Market3.1%

Stable Share Price: EW is less volatile than 75% of PH stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: EW's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19945,759Tony Moncupahttps://www.eastwestbanker.com

East West Banking Corporation, together with its subsidiaries, operates as a commercial bank that provides a range of financial services to individual and corporate clients in the Philippines. The company operates through Retail Banking, Corporate Banking, Consumer Banking, and Treasury and Trust segments. It offers savings, checking, time, and foreign currency deposit accounts; and auto, home, salary, personal, mortgage, and corporate loans.

East West Banking Fundamentals Summary

How do East West Banking's earnings and revenue compare to its market cap?
EW fundamental statistics
Market Cap₱15.77b
Earnings (TTM)₱2.99b
Revenue (TTM)₱20.54b

5.3x

P/E Ratio

0.3x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EW income statement (TTM)
Revenue₱20.54b
Cost of Revenue₱200.01m
Gross Profit₱20.34b
Other Expenses₱17.35b
Earnings₱2.99b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.33
Gross Margin99.03%
Net Profit Margin14.58%
Debt/Equity Ratio8.8%

How did EW perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is EW undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EW?

Other financial metrics that can be useful for relative valuation.

EW key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ration/a

Price to Earnings Ratio vs Peers

How does EW's PE Ratio compare to its peers?

EW PE Ratio vs Peers
The above table shows the PE ratio for EW vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5x

Price-To-Earnings vs Peers: EW is expensive based on its Price-To-Earnings Ratio (5.3x) compared to the peer average (5x).


Price to Earnings Ratio vs Industry

How does EW's PE Ratio compare vs other companies in the Banks Industry?

Price-To-Earnings vs Industry: EW is good value based on its Price-To-Earnings Ratio (5.3x) compared to the PH Banks industry average (7.2x)


Price to Earnings Ratio vs Fair Ratio

What is EW's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EW PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EW's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of EW when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EW (₱7.01) is trading below our estimate of fair value (₱26.57)

Significantly Below Fair Value: EW is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EW's PEG Ratio to determine if it is good value.


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Future Growth

How is East West Banking forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


16.4%

Forecasted Banks industry annual growth in earnings

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EW's forecast earnings growth is above the savings rate (4.9%).

Earnings vs Market: Insufficient data to determine if EW's earnings are forecast to grow faster than the PH market

High Growth Earnings: Insufficient data to determine if EW's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if EW's revenue is forecast to grow faster than the PH market.

High Growth Revenue: Insufficient data to determine if EW's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EW's Return on Equity is forecast to be low in 3 years time (7.6%).


Discover growth companies

Past Performance

How has East West Banking performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


5.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EW has high quality earnings.

Growing Profit Margin: EW's current net profit margins (14.6%) are lower than last year (26.7%).


Past Earnings Growth Analysis

Earnings Trend: EW's earnings have grown by 5% per year over the past 5 years.

Accelerating Growth: EW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EW had negative earnings growth (-52.3%) over the past year, making it difficult to compare to the Banks industry average (45.8%).


Return on Equity

High ROE: EW's Return on Equity (5.1%) is considered low.


Discover strong past performing companies

Financial Health

How is East West Banking's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

4/6

Financial Health Score 4/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: EW's Assets to Equity ratio (6.8x) is low.

Allowance for Bad Loans: EW has a low allowance for bad loans (54%).

Low Risk Liabilities: 94% of EW's liabilities are made up of primarily low risk sources of funding.

Loan Level: EW has an appropriate level of Loans to Assets ratio (51%).

Low Risk Deposits: EW's Loans to Deposits ratio (64%) is appropriate.

Level of Bad Loans: EW has a high level of bad loans (11%).


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Dividend

What is East West Banking current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate EW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EW's dividend payments have been increasing.


Current Payout to Shareholders

Earnings Coverage: EW is not paying a notable dividend for the PH market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of EW's dividend in 3 years as they are not forecast to pay a notable one for the PH market.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.6yrs

Average management tenure


CEO

Tony Moncupa (63 yo)

15.42yrs

Tenure

Mr. Antonio C. Moncupa, Jr. serves as a Vice Chairman at East West Banking Corporation since May 01, 2017 and serves as a Director and Chief Executive Officer since January 1, 2007. He has been President a...


Leadership Team

Experienced Management: EW's management team is seasoned and experienced (8.6 years average tenure).


Board Members

Experienced Board: EW's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EW insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

East West Banking Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: East West Banking Corporation
  • Ticker: EW
  • Exchange: PSE
  • Founded: 1994
  • Industry: Diversified Banks
  • Sector: Banks
  • Implied Market Cap: ₱15.772b
  • Shares outstanding: 2.25b
  • Website: https://www.eastwestbanker.com

Number of Employees


Location

  • East West Banking Corporation
  • East West Corporate Center
  • The Beaufort
  • Taguig City
  • 1017
  • Philippines

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.