NasdaqGS:PACW

Stock Analysis Report

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Executive Summary

PacWest Bancorp operates as the holding company for Pacific Western Bank that provides commercial banking products and services. More Details


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has PacWest Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PACW is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: PACW's weekly volatility (10%) has been stable over the past year.


Market Performance


7 Day Return

4.8%

PACW

5.7%

US Banks

2.1%

US Market


1 Year Return

-31.9%

PACW

-17.0%

US Banks

19.8%

US Market

Return vs Industry: PACW underperformed the US Banks industry which returned -17% over the past year.

Return vs Market: PACW underperformed the US Market which returned 19.7% over the past year.


Shareholder returns

PACWIndustryMarket
7 Day4.8%5.7%2.1%
30 Day34.9%23.3%8.1%
90 Day32.4%18.5%6.0%
1 Year-28.8%-31.9%-14.0%-17.0%22.5%19.8%
3 Year-37.2%-46.2%-3.3%-11.4%46.5%36.8%
5 Year-28.4%-44.2%40.4%22.9%96.9%75.3%

Long-Term Price Volatility Vs. Market

How volatile is PacWest Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

39.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PACW ($25.65) is trading below our estimate of fair value ($42.71)

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


Price To Earnings Ratio

PE vs Industry: PACW is unprofitable, so we can't compare its PE Ratio to the US Banks industry average.

PE vs Market: PACW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PACW's PB Ratio (0.9x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is PacWest Bancorp forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

108.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PACW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PACW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PACW's is expected to become profitable in the next 3 years.

Revenue vs Market: PACW's revenue (1.5% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: PACW's revenue (1.5% 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 (9%).


Next Steps

Past Performance

How has PacWest Bancorp performed over the past 5 years?

-38.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PACW is currently unprofitable.

Growing Profit Margin: PACW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PACW is unprofitable, and losses have increased over the past 5 years at a rate of 38.4% per year.

Accelerating Growth: Unable to compare PACW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PACW is unprofitable, making it difficult to compare its past year earnings growth to the Banks industry (-4.3%).


Return on Equity

High ROE: PACW has a negative Return on Equity (-35.47%), as it is currently unprofitable.


Next Steps

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 (8.2x) is low.

Allowance for Bad Loans: PACW has a sufficient allowance for bad loans (404%).

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 (66%).

Low Risk Deposits: PACW's Loans to Deposits ratio (78%) is appropriate.

Level of Bad Loans: PACW has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

3.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PACW's dividend (3.9%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: PACW's dividend (3.9%) is low compared to the top 25% of dividend payers in the US market (4.05%).


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: PACW is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PACW's dividends in 3 years are forecast to be well covered by earnings (34.8% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Matt Wagner (63 yo)

20.17yrs

Tenure

US$7,061,107

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD7.06M) is above average for companies of similar size in the US market ($USD5.15M).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Wagner
President20.17yrsUS$7.06m0.62%
$ 18.3m
Patrick Rusnak
Executive VP & CFO5.25yrsUS$3.03m0.10%
$ 3.0m
Mark Yung
Executive VP3.5yrsUS$3.66m0.075%
$ 2.2m
Christopher Blake
Executive VP2.83yrsUS$2.34m0.067%
$ 2.0m
Laird Boulden
Executive VP & Vice Chairman - Pacific Western Bank6.58yrsUS$2.37m0.063%
$ 1.9m
Monica Sparks
Executive VP & Chief Accounting Officer0.25yrno data0.0067%
$ 197.8k
Kori Ogrosky
Executive VPno datano data0.062%
$ 1.8m
William Black
Executive Vice President of Strategy & Corporate Development0.33yrno data0.096%
$ 2.8m
Rebecca Cordes
Executive Vice President of Human Resources1.92yrsno data0.022%
$ 652.4k
James Pieczynski
Executive VP6.58yrsUS$2.81m0.16%
$ 4.9m
Bryan Corsini
Chief Credit Officer & Executive VP6.83yrsUS$1.73m0.065%
$ 1.9m
Stanley Ivie
Executive VP & Chief Risk Officer4.67yrsUS$2.84m0.047%
$ 1.4m

4.7yrs

Average Tenure

57.5yo

Average Age

Experienced Management: PACW's management team is considered experienced (4.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Wagner
President20.17yrsUS$7.06m0.62%
$ 18.3m
Mark Yung
Executive VP3.5yrsUS$3.66m0.075%
$ 2.2m
James Pieczynski
Executive VP6.58yrsUS$2.81m0.16%
$ 4.9m
C. Hosler
Lead Independent Director3.5yrsUS$182.97k0.044%
$ 1.3m
Robert Stine
Independent Director20.83yrsUS$182.97k0.030%
$ 898.5k
John Eggemeyer
Independent Chairman of the Board20.42yrsUS$291.98k0.20%
$ 5.8m
Roger Molvar
Independent Director6.58yrsUS$142.97k0.020%
$ 591.0k
Susan Lester
Independent Director17.83yrsUS$182.97k0.027%
$ 806.7k
Daniel Platt
Independent Director17.83yrsUS$142.97k0.027%
$ 807.6k
Arnold Messer
Independent Director1.08yrsUS$21.50k0.034%
$ 1.0m
Paul Burke
Independent Director5.08yrsUS$182.97k0.035%
$ 1.0m
Craig Carlson
Independent Director10yrsUS$182.97k0.014%
$ 419.2k

8.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PACW'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: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PacWest Bancorp
  • Ticker: PACW
  • Exchange: NasdaqGS
  • Founded: 1999
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$2.952b
  • Shares outstanding: 115.08m
  • Website: https://www.pacwestbancorp.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PACWNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
F8BDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000

Biography

PacWest Bancorp operates as the holding company for Pacific Western Bank that provides commercial banking products and services. The company accepts demand, money market, and time deposits. It also provide...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 00:09
End of Day Share Price2020/11/25 00:00
Earnings2020/09/30
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.