NasdaqGS:CVBF

Stock Analysis Report

Executive Summary

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides banking and financial products and services.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has CVB Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVBF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

12.2%

CVBF

6.0%

US Banks

7.2%

US Market


1 Year Return

-5.2%

CVBF

-26.4%

US Banks

-10.4%

US Market

Return vs Industry: CVBF exceeded the US Banks industry which returned -26.9% over the past year.

Return vs Market: CVBF exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

CVBFIndustryMarket
7 Day12.2%6.0%7.2%
30 Day8.5%-24.0%-12.6%
90 Day-6.8%-38.0%-19.4%
1 Year-2.7%-5.2%-24.1%-26.4%-8.5%-10.4%
3 Year1.5%-6.1%-15.8%-21.9%15.8%8.3%
5 Year45.2%27.4%13.2%0.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is CVB Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CVB Financial undervalued compared to its fair value and its price relative to the market?

16.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVBF ($19.22) is trading below our estimate of fair value ($24.04)

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


Price To Earnings Ratio

PE vs Industry: CVBF is poor value based on its PE Ratio (13x) compared to the Banks industry average (8.8x).

PE vs Market: CVBF is good value based on its PE Ratio (13x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CVBF's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CVBF is overvalued based on its PB Ratio (1.4x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is CVB Financial forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-8.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVBF's earnings are forecast to decline over the next 3 years (-8.1% per year).

Earnings vs Market: CVBF's earnings are forecast to decline over the next 3 years (-8.1% per year).

High Growth Earnings: CVBF's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CVBF's revenue is expected to decline over the next 3 years (-2.3% per year).

High Growth Revenue: CVBF's revenue is forecast to decline over the next 3 years (-2.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVBF's Return on Equity is forecast to be low in 3 years time (8.5%).


Next Steps

Past Performance

How has CVB Financial performed over the past 5 years?

15.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVBF has high quality earnings.

Growing Profit Margin: CVBF's current net profit margins (42.8%) are higher than last year (38.8%).


Past Earnings Growth Analysis

Earnings Trend: CVBF's earnings have grown by 15.9% per year over the past 5 years.

Accelerating Growth: CVBF's earnings growth over the past year (36.8%) exceeds its 5-year average (15.9% per year).

Earnings vs Industry: CVBF earnings growth over the past year (36.8%) exceeded the Banks industry 11%.


Return on Equity

High ROE: CVBF's Return on Equity (10.4%) is considered low.


Next Steps

Financial Health

How is CVB Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CVBF has a low level of unsold assets or inventory.

Debt Coverage by Assets: CVBF's debt is not covered by short term assets (assets are 0.5x debt).


Financial Institutions Analysis

Asset Level: CVBF's level of assets compared to its equity is low.

Allowance for Bad Loans: CVBF has a sufficient allowance for bad loans.

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

Loan Level: CVBF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CVBF's loans are broadly funded by customer deposits.

Level of Bad Loans: CVBF has an appropriate level of bad loans (0.07%)


Next Steps

Dividend

What is CVB Financial's current dividend yield, its reliability and sustainability?

3.58%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CVBF's dividend (3.75%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CVBF's dividend (3.75%) is low compared to the top 25% of dividend payers in the US market (5.49%).


Stability and Growth of Payments

Stable Dividend: CVBF's dividends per share have been stable in the past 10 years.

Growing Dividend: CVBF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.5%), CVBF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVBF's dividends in 3 years are forecast to be covered by earnings (57.9% payout ratio).


Next Steps

Management

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

6.1yrs

Average management tenure


CEO

Dave Brager (51yo)

no data

Tenure

US$1,064,036

Compensation

Mr. David A. Brager also known as Dave, is Chief Executive Office and Director at CVB Financial Corp. and Citizens Business Bank (the “Bank”) since March 16, 2020 and served as its Executive Vice President ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD1.06M) is below average for companies of similar size in the US market ($USD5.55M).

Compensation vs Earnings: Dave's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Brager
CEO & Directorno dataUS$1.06m0.060% $1.7m
E. Nicholson
Chief Financial Officer3.83yrsUS$907.34k0.043% $1.2m
Christopher Myers
Consultantno dataUS$7.69m0.16% $4.6m
David Harvey
Executive VP & COO of Citizens Business Bank10.25yrsUS$1.04m0.054% $1.5m
David Farnsworth
Executive VP & Chief Credit Officer of Citizens Business Bank3.67yrsUS$676.89k0.017% $491.1k
Myrna DiSanto
Corporate Secretaryno datano datano data
Richard Wohl
Executive VP & General Counsel8.42yrsno data0.011% $315.3k
Yamynn DeAngelis
Executive VP & Chief Risk Officer11.17yrsno data0.059% $1.7m
William Kitchen
Senior Vice President of Citizens Business Bankno datano datano data
Michael Mulcahy
Senior Vice President of Los Angeles Region-Metro - Citizens Business Bank0.83yrno datano data

6.1yrs

Average Tenure

58.5yo

Average Age

Experienced Management: CVBF's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Brager
CEO & Directorno dataUS$1.06m0.060% $1.7m
Rodrigo Guerra
Independent Director2.67yrsUS$131.79k0.014% $395.9k
Marshall Laitsch
Independent Director1.58yrsUS$99.49k0.018% $517.3k
Raymond O'Brien
Chairman of the Board5.17yrsUS$215.03k0.026% $737.6k
Kristina Leslie
Independent Director4.58yrsUS$139.29k0.014% $402.1k
Hal Oswalt
Independent Director6.17yrsUS$131.79k0.025% $702.4k
George Borba
Vice Chairman of the Board6yrsUS$171.79k4.93% $138.9m
Stephen Del Guercio
Independent Director7.42yrsUS$131.79k0.022% $617.0k
Anna Kan
Independent Director3.67yrsUS$131.79k0.018% $496.5k

4.9yrs

Average Tenure

57yo

Average Age

Experienced Board: CVBF's board of directors are considered experienced (4.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CVBF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 14.9%.


Top Shareholders

Company Information

CVB Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CVB Financial Corp.
  • Ticker: CVBF
  • Exchange: NasdaqGS
  • Founded: 1974
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.818b
  • Shares outstanding: 140.11m
  • Website: https://www.cbbank.com

Number of Employees


Location

  • CVB Financial Corp.
  • 701 North Haven Avenue
  • Suite 350
  • Ontario
  • California
  • 91764
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVBFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 1983
BCVDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1983

Biography

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank that provides banking and financial products and services. The company offers checking, savings, and money market accounts, as well as time certificates of deposit; and serves as a federal tax depository for business customers. It also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans that are secured by owner-occupied and investor owned properties; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, the company offers various specialized services, such as cash management systems for monitoring cash flow, a credit card program for merchants, courier pick-up and delivery, payroll services, remote deposit capture, electronic funds transfer, and online account access. Further, it provides trust and investment-related services to customers through its CitizensTrust Division, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. The company’s customers consist primarily of small to mid-sized businesses and individuals located in the Inland Empire, Los Angeles County, Orange County, San Diego County, Ventura County, Santa Barbara County, and the Central Valley area of California. As of December 31, 2018, the company operated 68 banking centers and 3 trust office locations. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:31
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.