NYSE:CPF

Stock Analysis Report

Central Pacific Financial

Executive Summary

Central Pacific Financial Corp. operates as the holding company for Central Pacific Bank that provides commercial banking products and services to businesses, professionals, and individuals in the United States.

Rewards

Trading at 8.3% below its fair value

Earnings have grown 7% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -4.3% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

How has Central Pacific Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CPF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

CPF

0.9%

US Banks

0.03%

US Market


1 Year Return

9.8%

CPF

19.0%

US Banks

18.6%

US Market

Return vs Industry: CPF underperformed the US Banks industry which returned 19% over the past year.

Return vs Market: CPF underperformed the US Market which returned 18.6% over the past year.


Shareholder returns

CPFIndustryMarket
7 Day0.4%0.9%0.03%
30 Day-1.5%1.1%1.7%
90 Day5.0%15.5%5.7%
1 Year13.3%9.8%22.5%19.0%21.1%18.6%
3 Year-0.6%-8.5%30.1%21.0%45.6%36.2%
5 Year80.2%56.1%77.5%57.8%71.1%52.3%

Price Volatility Vs. Market

How volatile is Central Pacific Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Pacific Financial undervalued compared to its fair value and its price relative to the market?

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CPF ($29.17) is trading below our estimate of fair value ($31.81)

Significantly Below Fair Value: CPF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CPF is poor value based on its PE Ratio (14x) compared to the Banks industry average (12.7x).

PE vs Market: CPF is good value based on its PE Ratio (14x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CPF is overvalued based on its PB Ratio (1.6x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is Central Pacific Financial forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CPF's earnings are forecast to decline over the next 3 years (-4.3% per year).

Earnings vs Market: CPF's earnings are forecast to decline over the next 3 years (-4.3% per year).

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

Revenue vs Market: CPF's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CPF's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CPF's Return on Equity is forecast to be low in 3 years time (9.9%).


Next Steps

Past Performance

How has Central Pacific Financial performed over the past 5 years?

7.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CPF has high quality earnings.

Growing Profit Margin: CPF's current net profit margins (27.5%) are higher than last year (22.9%).


Past Earnings Growth Analysis

Earnings Trend: CPF's earnings have grown by 7% per year over the past 5 years.

Accelerating Growth: CPF's earnings growth over the past year (24.9%) exceeds its 5-year average (7% per year).

Earnings vs Industry: CPF earnings growth over the past year (24.9%) underperformed the Banks industry 27.1%.


Return on Equity

High ROE: CPF's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Central Pacific Financial'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: CPF has a low level of unsold assets or inventory.

Debt Coverage by Assets: CPF's debt is not covered by short term assets (assets are 0.4x debt).


Financial Institutions Analysis

Asset Level: CPF's level of assets compared to its equity is moderate.

Allowance for Bad Loans: CPF has a sufficient allowance for bad loans.

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

Loan Level: CPF has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CPF's loans are broadly funded by customer deposits.

Level of Bad Loans: CPF has an appropriate level of bad loans (0.02%)


Next Steps

Dividend

What is Central Pacific Financial's current dividend yield, its reliability and sustainability?

3.15%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.2%

Current dividend yield vs market & industry

Notable Dividend: CPF's dividend (3.15%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: CPF's dividend (3.15%) is low compared to the top 25% of dividend payers in the US market (3.7%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CPF has been paying a dividend for less than 10 years.

Growing Dividend: CPF's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.1%), CPF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CPF's dividends in 3 years are forecast to be well covered by earnings (49.2% payout ratio).


Next Steps

Management

What is the CEO of Central Pacific Financial's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Paul Yonamine (62yo)

1.2yrs

Tenure

US$376,602

Compensation

Mr. Paul K. Yonamine, C.P.A., serves as Chairman and Chief Executive Officer of Central Pacific Financial Corp. since October 1, 2018. He is Non-Executive Chairman at GCA Corporation since October 01, 2018 ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD376.60K) is below average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Paul's compensation has increased by more than 20% in the past year.


Management Age and Tenure

5.5yrs

Average Tenure

60yo

Average Age

Experienced Management: CPF's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CPF's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: CPF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$200,66512 Nov 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares6,700
Max PriceUS$29.95
SellUS$50,42204 Nov 19
Arnold Martines
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Markets
Shares1,730
Max PriceUS$29.15
BuyUS$253,50830 Jul 19
Anli Ngo
EntityIndividual
Role
Member of the Board of Directors
President & Director
Shares8,550
Max PriceUS$29.65
BuyUS$255,79130 Jul 19
Paul Yonamine
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares8,627
Max PriceUS$29.65
BuyUS$48,33811 Jun 19
Duane Kurisu
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,700
Max PriceUS$28.55
BuyUS$99,50911 Jun 19
Saedene Ota
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$28.55
BuyUS$28,33311 Jun 19
Wayne Kamitaki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$28.33
BuyUS$22,83811 Jun 19
Wayne Kamitaki
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares800
Max PriceUS$28.55
BuyUS$54,02611 Jun 19
Earl Fry
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,900
Max PriceUS$28.55
BuyUS$56,85911 Jun 19
Colbert Matsumoto
EntityIndividual
Role
Vice Chairman
Independent Vice Chairman
Shares2,000
Max PriceUS$28.55
BuyUS$51,17111 Jun 19
Christine H. Camp
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,800
Max PriceUS$28.55
BuyUS$54,02611 Jun 19
Crystal Rose
EntityIndividual
Shares1,900
Max PriceUS$28.55
SellUS$1,078,89625 Apr 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares35,400
Max PriceUS$30.78
SellUS$300,43413 Apr 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares10,000
Max PriceUS$30.12
SellUS$143,75016 Mar 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares5,000
Max PriceUS$28.75
SellUS$822 Feb 19
Arnold Martines
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Commercial Markets
Shares0.26
Max PriceUS$29.86
SellUS$48,00020 Feb 19
Blenn Fujimoto
EntityIndividual
Role
Senior Key Executive
Executive VP of Consumer Lending & Wealth Management
Shares1,600
Max PriceUS$30.00
SellUS$74,07019 Feb 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares2,469
Max PriceUS$30.00
SellUS$224,68015 Feb 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares7,531
Max PriceUS$30.00
SellUS$147,67013 Feb 19
John Dean
EntityIndividual
Role
Chairman Emeritus
Chairman Emeritus
Shares5,000
Max PriceUS$29.60

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Agnes Catherine Ngo (58yo)

    President & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.07m
  • Blenn Fujimoto (60yo)

    Executive VP of Consumer Lending & Wealth Management

    • Tenure: 17.9yrs
    • Compensation: US$442.22k
  • Glenn K. Ching (60yo)

    Executive VP

    • Tenure: 0yrs
    • Compensation: US$550.70k
  • David Morimoto (51yo)

    Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$623.86k
  • Paul Yonamine (62yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$376.60k
  • Lee Moriwaki (60yo)

    Executive VP & Chief Information Officer

    • Tenure: 4.8yrs
    • Compensation: US$484.91k
  • Wayne Kirihara (64yo)

    Executive VP & Chief Marketing Officer

    • Tenure: 5.5yrs
  • David Hudson (60yo)

    Executive Vice President of Community Banking

    • Tenure: 8.8yrs
    • Compensation: US$463.09k
  • Arnold Martines (54yo)

    Executive Vice President of Commercial Markets

    • Tenure: 8.8yrs
    • Compensation: US$460.16k
  • Patty Foley (60yo)

    Executive VP of Human Resources & Division Manager

    • Tenure: 5.5yrs

Board Members

  • John Dean (71yo)

    Chairman Emeritus

    • Tenure: 1.2yrs
    • Compensation: US$266.32k
  • Agnes Catherine Ngo (58yo)

    President & Director

    • Tenure: 4.4yrs
    • Compensation: US$1.07m
  • Earl Fry (60yo)

    Independent Director

    • Tenure: 14.9yrs
    • Compensation: US$115.00k
  • Colbert Matsumoto (66yo)

    Independent Vice Chairman

    • Tenure: 1.7yrs
    • Compensation: US$120.00k
  • Duane Kurisu (65yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$105.00k
  • Paul Kosasa (61yo)

    Independent Director

    • Tenure: 17.9yrs
    • Compensation: US$90.00k
  • Paul Yonamine (62yo)

    Chairman & CEO

    • Tenure: 1.2yrs
    • Compensation: US$376.60k
  • Wayne Kamitaki (67yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$107.50k
  • Christine H. Camp (52yo)

    Independent Director

    • Tenure: 15.9yrs
    • Compensation: US$107.50k
  • Saedene Ota (50yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$105.00k

Company Information

Central Pacific Financial Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Pacific Financial Corp.
  • Ticker: CPF
  • Exchange: NYSE
  • Founded: 1954
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$818.390m
  • Shares outstanding: 28.38m
  • Website: https://www.centralpacificbank.com

Number of Employees


Location

  • Central Pacific Financial Corp.
  • 220 South King Street
  • Honolulu
  • Hawaii
  • 96813
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CPFNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1984
XCP1DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1984

Biography

Central Pacific Financial Corp. operates as the holding company for Central Pacific Bank that provides commercial banking products and services to businesses, professionals, and individuals in the United S ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/07 23:51
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.