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PACW

PacWest BancorpNasdaqGS:PACW Stock Report

Last Price

US$51.20

Market Cap

US$6.0b

7D

2.6%

1Y

65.5%

Updated

16 Jan, 2022

Data

Company Financials +
PACW fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends4/6

PACW Stock Overview

PacWest Bancorp operates as the bank holding company for Pacific Western Bank that provides various banking products and services.

PacWest Bancorp Competitors

Signature Bank

NasdaqGS:SBNY

US$21.9b

First Horizon

NYSE:FHN

US$10.1b

Cullen/Frost Bankers

NYSE:CFR

US$9.1b

People's United Financial

NasdaqGS:PBCT

US$9.1b

Price History & Performance

Summary of all time highs, changes and price drops for PacWest Bancorp
Historical stock prices
Current Share PriceUS$51.20
52 Week HighUS$51.72
52 Week LowUS$29.12
Beta1.48
1 Month Change18.68%
3 Month Change6.42%
1 Year Change65.54%
3 Year Change29.46%
5 Year Change-4.25%
Change since IPO265.71%

Recent News & Updates

Shareholder Returns

PACWUS BanksUS Market
7D2.6%-0.5%-0.5%
1Y65.5%32.9%13.7%

Return vs Industry: PACW exceeded the US Banks industry which returned 32.9% over the past year.

Return vs Market: PACW exceeded the US Market which returned 13.7% over the past year.

Price Volatility

Is PACW's price volatile compared to industry and market?
PACW volatility
PACW Average Weekly Movement4.3%
Banks Industry Average Movement3.7%
Market Average Movement6.6%
10% most volatile stocks in US Market15.9%
10% least volatile stocks in US Market2.4%

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

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

About the Company

FoundedEmployeesCEOWebsite
19991,700Matt Wagnerhttps://www.pacwestbancorp.com

PacWest Bancorp operates as the bank holding company for Pacific Western Bank that provides various banking products and services. The company accepts demand, money market, and time deposits. It also provides real estate loans to professional developers and real estate investors for the acquisition, refinancing, renovation, and construction of commercial real estate properties; small business administration loans; asset-based loans for working capital needs; venture capital loans to support the operations of entrepreneurial and venture-backed companies; and equipment-secured loans and leases.

PacWest Bancorp Fundamentals Summary

How do PacWest Bancorp's earnings and revenue compare to its market cap?
PACW fundamental statistics
Market CapUS$6.00b
Earnings (TTM)US$579.64m
Revenue (TTM)US$1.39b

10.4x

P/E Ratio

1.5x

P/B Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PACW income statement (TTM)
RevenueUS$1.39b
Cost of RevenueUS$0
Gross ProfitUS$1.39b
ExpensesUS$805.39m
EarningsUS$579.64m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 19, 2022

Earnings per share (EPS)4.94
Gross Margin100.00%
Net Profit Margin41.85%
Debt/Equity Ratio22.0%

How did PACW perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

20%

Payout Ratio

Valuation

Is PacWest 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: PACW ($51.2) is trading below our estimate of fair value ($106.78)

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


Price To Earnings Ratio

PE vs Industry: PACW is good value based on its PE Ratio (10.4x) compared to the US Banks industry average (11.3x).

PE vs Market: PACW is good value based on its PE Ratio (10.4x) compared to the US market (17.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PACW is overvalued based on its PB Ratio (1.5x) compared to the US Banks industry average (1.2x).


Future Growth

How is PacWest Bancorp forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PACW's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: PACW's earnings are forecast to decline over the next 3 years (-2.8% per year).

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

Revenue vs Market: PACW's revenue (8.2% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: PACW's revenue (8.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PACW's Return on Equity is forecast to be low in 3 years time (13.1%).


Past Performance

How has PacWest Bancorp performed over the past 5 years?

-28.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PACW has high quality earnings.

Growing Profit Margin: PACW became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: PACW's earnings have declined by 28.1% per year over the past 5 years.

Accelerating Growth: PACW has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: PACW has become profitable in the last year, making it difficult to compare its past year earnings growth to the Banks industry (43.7%).


Return on Equity

High ROE: PACW's Return on Equity (15%) is considered low.


Financial Health

How is PacWest 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: PACW's Assets to Equity ratio (9.2x) is low.

Allowance for Bad Loans: PACW has a sufficient allowance for bad loans (316%).

Low Risk Liabilities: 96% of PACW's liabilities are made up of primarily low risk sources of funding.

Loan Level: PACW has an appropriate level of Loans to Assets ratio (57%).

Low Risk Deposits: PACW's Loans to Deposits ratio (66%) is appropriate.

Level of Bad Loans: PACW has an appropriate level of bad loans (0.3%).


Dividend

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

1.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PACW's dividend (1.95%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: PACW's dividend (1.95%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.2%), PACW's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PACW's dividends in 3 years are forecast to be well covered by earnings (21.6% payout ratio).


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Matt Wagner (64 yo)

21.33yrs

Tenure

US$4,952,716

Compensation

Mr. Matthew P. Wagner, also known as Matt, has been President and Chief Executive Officer of PacWest Bancorp and Pacific Western Bank since 2000. Mr. Wagner is a Director of PacWest Bancorp since 2000. Mr....


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD4.95M) is about average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: PACW's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: PACW's board of directors are considered experienced (9.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PACW 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

PacWest Bancorp's employee growth, exchange listings and data sources


Key Information

  • Name: PacWest Bancorp
  • Ticker: PACW
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Regional Banks
  • Sector: Banks
  • Implied Market Cap: US$6.003b
  • Shares outstanding: 117.25m
  • Website: https://www.pacwestbancorp.com

Number of Employees


Location

  • PacWest Bancorp
  • 9701 Wilshire Boulevard
  • Suite 700
  • Beverly Hills
  • California
  • 90212
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 23:20
End of Day Share Price2022/01/14 00:00
Earnings2021/09/30
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.