| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
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
| Historical stock prices | |
|---|---|
| Current Share Price | US$72.22 |
| 52 Week High | US$30.49 |
| 52 Week Low | US$82.53 |
| Beta | 1.88 |
| 1 Month Change | 3.01% |
| 3 Month Change | 9.00% |
| 1 Year Change | 110.68% |
| 3 Year Change | 15.28% |
| 5 Year Change | 97.43% |
| Change since IPO | 1,400.68% |
Recent News & Updates
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...
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.
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
| EWBC | US Banks | US Market | |
|---|---|---|---|
| 7D | 0.5% | 0.9% | -0.6% |
| 1Y | 110.7% | 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
| EWBC volatility | |
|---|---|
| EWBC Beta | 1.88 |
| Industry Beta | 1.37 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 3,161 | Dominic Ng | https://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
| EWBC fundamental statistics | |
|---|---|
| Market Cap | US$10.25b |
| Earnings (TTM) | US$753.36m |
| Revenue (TTM) | US$1.57b |
13.6x
P/E Ratio1.8x
P/B RatioIs EWBC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| EWBC income statement (TTM) | |
|---|---|
| Revenue | US$1.57b |
| Cost of Revenue | US$0 |
| Gross Profit | US$1.57b |
| Expenses | US$811.69m |
| Earnings | US$753.36m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 5.32 |
| Gross Margin | 100.00% |
| Net Profit Margin | 48.14% |
| Debt/Equity Ratio | 16.1% |
How did EWBC perform over the long term?
See historical performance and comparisonDividends
1.8%
Current Dividend Yield23%
Payout RatioValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/18 22:02 |
| End of Day Share Price | 2021/09/17 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.