NasdaqGM:CWBC

Stock Analysis Report

Community West Bancshares

Executive Summary

Community West Bancshares operates as the bank holding company for Community West Bank, N.A.

Snowflake

Flawless balance sheet and slightly overvalued.


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Share Price & News

How has Community West Bancshares's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.5%

CWBC

-0.7%

US Banks

0.4%

US Market


1 Year Return

-3.7%

CWBC

10.4%

US Banks

13.1%

US Market

Return vs Industry: CWBC underperformed the US Banks industry which returned 10.4% over the past year.

Return vs Market: CWBC underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

CWBCIndustryMarket
7 Day2.5%-0.7%0.4%
30 Day5.6%8.3%4.0%
90 Day6.4%19.0%7.4%
1 Year-1.2%-3.7%13.7%10.4%15.6%13.1%
3 Year30.5%23.8%40.9%31.0%48.2%38.6%
5 Year74.5%60.0%72.2%53.1%62.6%44.6%

Price Volatility Vs. Market

How volatile is Community West Bancshares's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Community West Bancshares undervalued compared to its fair value and its price relative to the market?

13.25x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CWBC ($10.4) is trading above our estimate of fair value ($8.48)

Significantly Below Fair Value: CWBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CWBC is poor value based on its PE Ratio (13.3x) compared to the Banks industry average (12.6x).

PE vs Market: CWBC is good value based on its PE Ratio (13.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CWBC is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Community West Bancshares forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CWBC's forecast earnings growth (8.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CWBC's earnings (8.9% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: CWBC's earnings are forecast to grow, but not significantly.

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CWBC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Community West Bancshares performed over the past 5 years?

8.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWBC has a high level of non-cash earnings.

Growing Profit Margin: CWBC's current net profit margins (18.2%) are higher than last year (17.6%).


Past Earnings Growth Analysis

Earnings Trend: CWBC's earnings have grown by 8% per year over the past 5 years.

Accelerating Growth: CWBC's earnings growth over the past year (1.6%) is below its 5-year average (8% per year).

Earnings vs Industry: CWBC earnings growth over the past year (1.6%) underperformed the Banks industry 27.7%.


Return on Equity

High ROE: CWBC's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Community West Bancshares'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: CWBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: CWBC's debt is covered by short term assets (assets are 2.7x debt).


Financial Institutions Analysis

Asset Level: CWBC's level of assets compared to its equity is moderate.

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

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

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

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

Level of Bad Loans: CWBC has an appropriate level of bad loans (0.74%)


Next Steps

Dividend

What is Community West Bancshares's current dividend yield, its reliability and sustainability?

2.11%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CWBC's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: CWBC's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CWBC has been paying a dividend for less than 10 years.

Growing Dividend: CWBC's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.8%), CWBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Community West Bancshares's salary, the management and board of directors tenure and is there insider trading?

5.9yrs

Average management tenure


CEO

Marty Plourd (60yo)

7.7yrs

Tenure

US$715,663

Compensation

Mr. Martin E. Plourd, also known as Marty, has been the Chief Executive Officer and President of Community West Bancshares since May 29, 2012. Mr. Plourd has been the Chief Executive Officer and President  ...


CEO Compensation Analysis

Compensation vs Market: Marty's total compensation ($USD715.66K) is above average for companies of similar size in the US market ($USD509.90K).

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


Management Age and Tenure

5.9yrs

Average Tenure

56yo

Average Age

Experienced Management: CWBC's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

68.5yo

Average Age

Experienced Board: CWBC's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$18,69117 Sep 19
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,917
Max PriceUS$9.75
BuyUS$7,93712 Sep 19
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares814
Max PriceUS$9.75
BuyUS$2,99905 Sep 19
Kirk Stovesand
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares307
Max PriceUS$9.77
BuyUS$14,52026 Aug 19
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,500
Max PriceUS$9.68
BuyUS$50,99126 Aug 19
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,263
Max PriceUS$9.70
BuyUS$4,83514 Aug 19
Robert Bartlein
EntityIndividual
Role
Vice Chairman
Independent Director
Shares500
Max PriceUS$9.67
BuyUS$4,91531 Jul 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.83
BuyUS$4,92518 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.85
SellUS$4,88018 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.76
BuyUS$21414 Jun 19
Robert Bartlein
EntityIndividual
Role
Vice Chairman
Independent Director
Shares22
Max PriceUS$9.73
BuyUS$5,00013 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$10.00
BuyUS$4,93512 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.87
BuyUS$4,87511 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.75
BuyUS$2,98410 Jun 19
Kirk Stovesand
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares296
Max PriceUS$10.08
BuyUS$4,88510 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.77
BuyUS$9,75007 Jun 19
Robert Bartlein
EntityIndividual
Role
Vice Chairman
Independent Director
Shares1,000
Max PriceUS$9.75
BuyUS$4,93506 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.87
BuyUS$4,96005 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$9.92
BuyUS$5,00004 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$10.00
BuyUS$9,90003 Jun 19
Robert Bartlein
EntityIndividual
Role
Vice Chairman
Independent Director
Shares1,000
Max PriceUS$9.90
BuyUS$5,06003 Jun 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$10.12
BuyUS$5,03531 May 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$10.07
BuyUS$9,95022 May 19
Robert Bartlein
EntityIndividual
Role
Vice Chairman
Independent Director
Shares1,000
Max PriceUS$9.95
BuyUS$10,18017 May 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares1,000
Max PriceUS$10.18
BuyUS$2,70607 Mar 19
Kirk Stovesand
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares263
Max PriceUS$10.29
SellUS$207,30419 Feb 19
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$10.37
BuyUS$10,30004 Feb 19
William Filippin
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer of Community West Bank
Shares1,000
Max PriceUS$10.30
BuyUS$5,04230 Jan 19
Martin Plourd
EntityIndividual
Role
Chief Executive Officer
President
Shares500
Max PriceUS$10.08
SellUS$106,50012 Dec 18
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares10,000
Max PriceUS$10.65
SellUS$212,00006 Dec 18
William Peeples
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares20,000
Max PriceUS$10.60
BuyUS$2,68804 Dec 18
Kirk Stovesand
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares229
Max PriceUS$11.74

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Marty Plourd (60yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$715.66k
  • John Illgen (74yo)

    Secretary & Director

    • Tenure: 22.8yrs
    • Compensation: US$33.31k
  • Cynthia Hooper (56yo)

    Senior VP & Loan Servicing Department Manager

    • Tenure: 0yrs
    • Compensation: US$149.43k
  • Bill Filippin (55yo)

    Executive VP & Chief Banking Officer of Community West Bank

    • Tenure: 4.4yrs
    • Compensation: US$386.49k
  • Susan Thompson (56yo)

    Executive VP & CFO

    • Tenure: 2.6yrs
    • Compensation: US$291.50k
  • Jason Bietz

    Regional President

    • Tenure: 0yrs
  • Tom Wetzel

    Senior VP & Chief Risk Officer

    • Tenure: 7.4yrs
  • Chris Lem

    Senior VP & Compliance Manager

    • Tenure: 0yrs
  • Jennifer Ofner

    Senior VP & Director of Human Resources

    • Tenure: 0yrs
  • Kevin Moon

    Senior VP and Director of Marketing & Product Development

    • Tenure: 0yrs

Board Members

  • Marty Plourd (60yo)

    President

    • Tenure: 7.7yrs
    • Compensation: US$715.66k
  • Jim Lokey (71yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$44.56k
  • Bill Peeples (76yo)

    Chairman of the Board

    • Tenure: 15.8yrs
    • Compensation: US$32.36k
  • Jean Blois (91yo)

    Independent Director

    • Tenure: 22.8yrs
    • Compensation: US$29.91k
  • Robert Bartlein (71yo)

    Independent Director

    • Tenure: 0yrs
    • Compensation: US$48.96k
  • John Illgen (74yo)

    Secretary & Director

    • Tenure: 22.8yrs
    • Compensation: US$33.31k
  • Kirk Stovesand (56yo)

    Independent Director

    • Tenure: 16.5yrs
    • Compensation: US$49.31k
  • Tom Dobyns (66yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$33.21k
  • Shereef Moharram (47yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$28.41k
  • Dana Boutain (54yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$30.88k

Company Information

Community West Bancshares's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Community West Bancshares
  • Ticker: CWBC
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$88.034m
  • Shares outstanding: 8.47m
  • Website: https://www.communitywest.com

Number of Employees


Location

  • Community West Bancshares
  • 445 Pine Avenue
  • Goleta
  • California
  • 93117
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWBCNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 1996

Biography

Community West Bancshares operates as the bank holding company for Community West Bank, N.A. that provides various financial products and services in California. The company offers deposit products, such a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 23:33
End of Day Share Price2019/11/13 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.