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 Analysis

Flawless balance sheet and undervalued.


Similar Companies

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

3.1%

CWBC

-3.6%

US Banks

-1.1%

US Market


1 Year Return

-40.7%

CWBC

-31.1%

US Banks

-13.6%

US Market

Return vs Industry: CWBC underperformed the US Banks industry which returned -31.1% over the past year.

Return vs Market: CWBC underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

CWBCIndustryMarket
7 Day3.1%-3.6%-1.1%
30 Day-44.6%-30.2%-17.8%
90 Day-48.0%-41.8%-22.5%
1 Year-39.5%-40.7%-29.0%-31.1%-11.9%-13.6%
3 Year-37.4%-40.7%-20.2%-26.0%12.1%4.9%
5 Year-2.2%-10.6%6.2%-5.9%30.5%16.3%

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?

38.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CWBC ($5.93) is trading below our estimate of fair value ($9.66)

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


Price To Earnings Ratio

PE vs Industry: CWBC is good value based on its PE Ratio (6.3x) compared to the Banks industry average (8.8x).

PE vs Market: CWBC is good value based on its PE Ratio (6.3x) compared to the US market (12.9x).


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 (0.6x) compared to the US Banks industry average (0.8x).


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?

-1.5%

Forecasted Banks industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Community West Bancshares has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

12.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CWBC has high quality earnings.

Growing Profit Margin: CWBC's current net profit margins (20.9%) are higher than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: CWBC's earnings have grown by 12% per year over the past 5 years.

Accelerating Growth: CWBC's earnings growth over the past year (7.5%) is below its 5-year average (12% per year).

Earnings vs Industry: CWBC earnings growth over the past year (7.5%) underperformed the Banks industry 10.9%.


Return on Equity

High ROE: CWBC's Return on Equity (9.7%) is considered low.


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 2x 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 (0.33%)


Next Steps

Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CWBC's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (2%).

High Dividend: CWBC's dividend (3.71%) is low compared to the top 25% of dividend payers in the US market (5.56%).


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 low payout ratio (22.9%), 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

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

6.3yrs

Average management tenure


CEO

Marty Plourd (60yo)

8.08s

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 ($USD715.66K) is about average for companies of similar size in the US market ($USD605.16K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Martin Plourd
President8.08yrsUS$715.66k0.89% $447.5k
Susan Thompson
Executive VP & CFO3yrsUS$291.50k0.14% $71.1k
William Filippin
Executive VP & Chief Banking Officer of Community West Bank4.83yrsUS$386.49k0.11% $55.2k
John Illgen
Secretary & Director23.25yrsUS$33.31k0.41% $207.4k
Chris Lem
Senior VP & Compliance Managerno datano datano data
Kevin Moon
Senior VP and Director of Marketing & Product Developmentno datano datano data
Jennifer Ofner
Senior VP & Director of Human Resourcesno datano datano data
Cynthia Hooper
Senior VP & Loan Servicing Department Managerno dataUS$149.43kno data
Thomas Wetzel
Senior VP & Chief Risk Officer7.83yrsno datano data
Jason Bietz
Regional Presidentno datano datano data

6.3yrs

Average Tenure

56yo

Average Age

Experienced Management: CWBC's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Martin Plourd
President8.08yrsUS$715.66k0.89% $447.5k
John Illgen
Secretary & Director23.25yrsUS$33.31k0.41% $207.4k
James Lokey
Independent Director4.83yrsUS$44.56k0.13% $63.1k
William Peeples
Chairman of the Board16.25yrsUS$32.36k9.45% $4.7m
Jean Blois
Independent Director23.25yrsUS$29.91k0.79% $396.9k
Robert Bartlein
Independent Directorno dataUS$48.96k6.71% $3.4m
Kirk Stovesand
Independent Director16.92yrsUS$49.31k0.65% $328.5k
Thomas Dobyns
Independent Director2.75yrsUS$33.21k0.030% $14.8k
Shereef Moharram
Independent Director8.33yrsUS$28.41k0.17% $85.5k
Dana Boutain
Independent Director2.75yrsUS$30.88k0.0024% $1.2k

8.3yrs

Average Tenure

68yo

Average Age

Experienced Board: CWBC's board of directors are considered experienced (8.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: CWBC insiders have bought more shares than they have sold 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 2.2%.


Top Shareholders

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$50.216m
  • 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 as checking accounts, savings accounts, money market accounts, and fixed rate and fixed maturity certificates of deposit, as well as cash management products. It also provides commercial, commercial real estate, consumer, manufactured housing, and small business administration loans, as well as agricultural loans for real estate and operating lines; home equity lines of credit, as well as lines of credit collateralized by residential real estate; single family real estate loans; and installment loans consisting of automobile and general-purpose loans. The company serves small to medium-sized businesses and professional organizations. It operates a network of eight branch banking offices in Goleta, Oxnard, San Luis Obispo, Santa Barbara, Santa Maria, Ventura, Paso Robles, and Westlake Village. Community West Bancshares was founded in 1989 and is headquartered in Goleta, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 08:03
End of Day Share Price2020/04/01 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.