NasdaqCM:CVCY

Stock Analysis Report

Central Valley Community Bancorp

Executive Summary

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and individuals in the central valley area of California.

Rewards

Trading at 24.3% below its fair value

Earnings grew by 36.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -6.4% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

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


Similar Companies

Share Price & News

How has Central Valley Community Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.1%

CVCY

1.3%

US Banks

0.6%

US Market


1 Year Return

14.6%

CVCY

24.6%

US Banks

20.8%

US Market

Return vs Industry: CVCY underperformed the US Banks industry which returned 24.6% over the past year.

Return vs Market: CVCY underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

CVCYIndustryMarket
7 Day2.1%1.3%0.6%
30 Day4.1%3.3%2.5%
90 Day1.2%8.9%4.9%
1 Year17.1%14.6%28.2%24.6%23.5%20.8%
3 Year14.4%9.1%26.0%17.2%46.5%37.0%
5 Year119.1%101.8%61.8%44.2%64.6%46.5%

Price Volatility Vs. Market

How volatile is Central Valley Community Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Valley Community Bancorp undervalued compared to its fair value and its price relative to the market?

24.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVCY ($21.55) is trading below our estimate of fair value ($28.48)

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


Price To Earnings Ratio

PE vs Industry: CVCY is poor value based on its PE Ratio (13.1x) compared to the Banks industry average (12.9x).

PE vs Market: CVCY is good value based on its PE Ratio (13.1x) compared to the US market (18.6x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CVCY is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Central Valley Community Bancorp forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVCY's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: CVCY's earnings are forecast to decline over the next 3 years (-6.4% per year).

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

Revenue vs Market: CVCY's revenue is expected to decline over the next 3 years (-1.4% per year).

High Growth Revenue: CVCY's revenue is forecast to decline over the next 3 years (-1.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVCY's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

  • Explore growth companies in the Banks industry.

Past Performance

How has Central Valley Community Bancorp performed over the past 5 years?

22.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVCY has high quality earnings.

Growing Profit Margin: CVCY's current net profit margins (28.9%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: CVCY's earnings have grown significantly by 22.7% per year over the past 5 years.

Accelerating Growth: CVCY's earnings growth over the past year (36.3%) exceeds its 5-year average (22.7% per year).

Earnings vs Industry: CVCY earnings growth over the past year (36.3%) exceeded the Banks industry 27.3%.


Return on Equity

High ROE: CVCY's Return on Equity (9.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Central Valley Community Bancorp'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: CVCY has a low level of unsold assets or inventory.

Debt Coverage by Assets: CVCY's debt is covered by short term assets (assets are 4.8x debt).


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: CVCY has an appropriate level of bad loans (0.23%)


Next Steps

Dividend

What is Central Valley Community Bancorp's current dividend yield, its reliability and sustainability?

2.04%

Current Dividend Yield


Dividend Yield vs Market

company2.0%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years2.2%

Current dividend yield vs market & industry

Notable Dividend: CVCY's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CVCY's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: CVCY's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (25%), CVCY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVCY's dividends in 3 years are forecast to be well covered by earnings (33.8% payout ratio).


Next Steps

Management

What is the CEO of Central Valley Community Bancorp's salary, the management and board of directors tenure and is there insider trading?

4.8yrs

Average management tenure


CEO

Jim Ford (61yo)

4.8yrs

Tenure

US$658,514

Compensation

Mr. James M. Ford, also known as Jim, has been the Chief Executive Officer, President and Director of Central Valley Community Bancorp and Central Valley Community Bank since February 1, 2015. Mr. Ford se ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD658.51K) is below average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.8yrs

Average Tenure

61yo

Average Age

Experienced Management: CVCY's management team is considered experienced (4.8 years average tenure).


Board Age and Tenure

5.6yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CVCY's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$43,04012 Dec 19
Robert Flautt
EntityIndividual
Shares2,000
Max PriceUS$21.52
BuyUS$4,93402 Dec 19
David Kinross
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares280
Max PriceUS$17.62
SellUS$21,33017 Sep 19
Robert Flautt
EntityIndividual
Shares1,000
Max PriceUS$21.33
BuyUS$4,22903 Sep 19
David Kinross
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares240
Max PriceUS$17.62
BuyUS$3,51906 Jun 19
James Kim
EntityIndividual
Shares200
Max PriceUS$17.60
BuyUS$4,92703 Jun 19
David Kinross
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares280
Max PriceUS$17.60
BuyUS$18,24102 Mar 19
James Kim
EntityIndividual
Shares1,041
Max PriceUS$17.52
BuyUS$11,07502 Mar 19
David Kinross
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares632
Max PriceUS$17.52

Ownership Breakdown

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


Management Team

  • Steven McDonald (69yo)

    Secretary & Director

    • Tenure: 19.9yrs
    • Compensation: US$63.89k
  • Patrick Carman (69yo)

    Executive VP & Chief Credit Officer

    • Tenure: 4.7yrs
    • Compensation: US$358.92k
  • Dave Kinross (55yo)

    Executive VP & CFO

    • Tenure: 13.6yrs
    • Compensation: US$383.65k
  • Dan Demmers

    • Tenure: 0yrs
  • Cathy Chatoian

    • Tenure: 0yrs
  • Jim Ford (61yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$658.51k
  • Le-Ann Ruiz

    Assistant Corporate Secretary

    • Tenure: 0yrs
  • Blaine Lauhon (56yo)

    • Tenure: 1.8yrs

Board Members

  • Gary Gall (68yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$54.80k
  • Dan Cunningham (82yo)

    Vice Chairman & Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$86.69k
  • Dan Doyle (72yo)

    Independent Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$70.01k
  • Steven McDonald (69yo)

    Secretary & Director

    • Tenure: 19.9yrs
    • Compensation: US$63.89k
  • Bill Smittcamp (66yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$58.15k
  • Louis McMurray (72yo)

    Independent Director

    • Tenure: 19.9yrs
    • Compensation: US$68.54k
  • Ed Darden (74yo)

    Independent Director

    • Tenure: 18.9yrs
    • Compensation: US$56.93k
  • Jim Ford (61yo)

    President

    • Tenure: 4.8yrs
    • Compensation: US$658.51k
  • Tommy Elliott (42yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$54.80k
  • Karen Musson (70yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$54.80k

Company Information

Central Valley Community Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Valley Community Bancorp
  • Ticker: CVCY
  • Exchange: NasdaqCM
  • Founded: 1979
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$283.766m
  • Shares outstanding: 13.20m
  • Website: https://www.cvcb.com

Number of Employees


Location

  • Central Valley Community Bancorp
  • 7100 North Financial Drive
  • Suite 101
  • Fresno
  • California
  • 93720
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVCYNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1995

Biography

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and indiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 23:34
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.