EWBC

East West BancorpNasdaqGS:EWBC Stock Report

Market Cap

US$10.2b

7D

0.5%

1Y

110.7%

Updated

18 Sep, 2021

Data

Company Financials +
EWBC fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health6/6
Dividends5/6

EWBC Overview

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China.

East West Bancorp Competitors

Price History & Performance

Summary of all time highs, changes and price drops for East West Bancorp
Historical stock prices
Current Share PriceUS$72.22
52 Week HighUS$30.49
52 Week LowUS$82.53
Beta1.88
1 Month Change3.01%
3 Month Change9.00%
1 Year Change110.68%
3 Year Change15.28%
5 Year Change97.43%
Change since IPO1,400.68%

Recent News & Updates

Sep 04
Here's Why We Think East West Bancorp (NASDAQ:EWBC) Is Well Worth Watching

Here's Why We Think East West Bancorp (NASDAQ:EWBC) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Jul 30

East West Bancorp Undervalued On Above-Average Loan Growth And Core Earnings Growth Potential

East West didn't post a blowout second quarter, but the bank did see a solid balance between core pre-provision earnings outperformance and ongoing reserve release benefits. Loan activity appears to be picking up; East West saw better-than-average loan growth this quarter and the commercial loan pipeline is improving, leading management to raise its growth target. East West's affinity-based banking relationships have driven above-average growth and should continue to do so, with multiple opportunities to drive above-average lending growth with better-than-average credit quality. High single-digit core earnings growth can support a long-term double-digit return from today's level, and shorter-term metrics likewise point to an $80-plus fair value.

May 22
This Is Why East West Bancorp, Inc.'s (NASDAQ:EWBC) CEO Compensation Looks Appropriate

This Is Why East West Bancorp, Inc.'s (NASDAQ:EWBC) CEO Compensation Looks Appropriate

CEO Dominic Ng has done a decent job of delivering relatively good performance at East West Bancorp, Inc. ( NASDAQ:EWBC...

Shareholder Returns

EWBCUS BanksUS Market
7D0.5%0.9%-0.6%
1Y110.7%63.3%33.8%

Return vs Industry: EWBC exceeded the US Banks industry which returned 63.3% over the past year.

Return vs Market: EWBC exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is EWBC's price volatile compared to industry and market?
EWBC volatility
EWBC Beta1.88
Industry Beta1.37
Market Beta1

Stable Share Price: EWBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: EWBC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19983,161Dominic Nghttps://www.eastwestbank.com

East West Bancorp, Inc. operates as the bank holding company for East West Bank that provides a range of personal and commercial banking services to businesses and individuals in the United States and Greater China. It operates through three segments: Consumer and Business Banking, Commercial Banking, and Other. The company accepts various deposit products, such as personal and business checking and savings accounts, money market, and time deposits.

East West Bancorp Fundamentals Summary

How do East West Bancorp's earnings and revenue compare to its market cap?
EWBC fundamental statistics
Market CapUS$10.25b
Earnings (TTM)US$753.36m
Revenue (TTM)US$1.57b

13.6x

P/E Ratio

1.8x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EWBC income statement (TTM)
RevenueUS$1.57b
Cost of RevenueUS$0
Gross ProfitUS$1.57b
ExpensesUS$811.69m
EarningsUS$753.36m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.32
Gross Margin100.00%
Net Profit Margin48.14%
Debt/Equity Ratio16.1%

How did EWBC perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

23%

Payout Ratio

Valuation

Is East West Bancorp undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EWBC ($72.22) is trading below our estimate of fair value ($145.66)

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


Price To Earnings Ratio

PE vs Industry: EWBC is poor value based on its PE Ratio (13.6x) compared to the US Banks industry average (10.8x).

PE vs Market: EWBC is good value based on its PE Ratio (13.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: EWBC is poor value based on its PEG Ratio (3.7x)


Price to Book Ratio

PB vs Industry: EWBC is overvalued based on its PB Ratio (1.8x) compared to the US Banks industry average (1.1x).


Future Growth

How is East West Bancorp forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

3.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EWBC's forecast earnings growth (3.7% per year) is above the savings rate (2%).

Earnings vs Market: EWBC's earnings (3.7% per year) are forecast to grow slower than the US market (14.9% per year).

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

Revenue vs Market: EWBC's revenue (7.9% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: EWBC's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EWBC's Return on Equity is forecast to be low in 3 years time (14%).


Past Performance

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

8.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EWBC has high quality earnings.

Growing Profit Margin: EWBC's current net profit margins (48.1%) are higher than last year (44.6%).


Past Earnings Growth Analysis

Earnings Trend: EWBC's earnings have grown by 8.8% per year over the past 5 years.

Accelerating Growth: EWBC's earnings growth over the past year (24.8%) exceeds its 5-year average (8.8% per year).

Earnings vs Industry: EWBC earnings growth over the past year (24.8%) underperformed the Banks industry 36%.


Return on Equity

High ROE: EWBC's Return on Equity (13.6%) is considered low.


Financial Health

How is East West 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


Financial Institutions Analysis

Asset Level: EWBC's Assets to Equity ratio (10.8x) is moderate.

Allowance for Bad Loans: EWBC has a sufficient allowance for bad loans (296%).

Low Risk Liabilities: 97% of EWBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: EWBC has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: EWBC's Loans to Deposits ratio (75%) is appropriate.

Level of Bad Loans: EWBC has an appropriate level of bad loans (0.5%).


Dividend

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

1.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EWBC's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: EWBC's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (3.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.7%), EWBC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EWBC's dividends in 3 years are forecast to be well covered by earnings (25% payout ratio).


Next Steps

Management

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

9.0yrs

Average management tenure


CEO

Dominic Ng (62 yo)

29.67yrs

Tenure

US$6,933,775

Compensation

Mr. Dominic Ng has been the Chairman and Chief Executive Officer of East West Bancorp, Inc. and at East West Bank since 1992 and serves as its President since August 24, 2018. He served as the President of...


CEO Compensation Analysis

Compensation vs Market: Dominic's total compensation ($USD6.93M) is below average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: EWBC's management team is seasoned and experienced (9 years average tenure).


Board Members

Experienced Board: EWBC's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: EWBC insiders have only sold shares 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 Bancorp, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: East West Bancorp, Inc.
  • Ticker: EWBC
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$10.246b
  • Shares outstanding: 141.88m
  • Website: https://www.eastwestbank.com

Number of Employees


Location

  • East West Bancorp, Inc.
  • 135 North Los Robles Avenue
  • 7th Floor
  • Pasadena
  • California
  • 91101
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.