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Cvb Financial Corp. (CVBF)
NASDAQ:CVBF
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Cvb Financial
(NASDAQ:CVBF)
61Neutral
Positive Factors
Earnings
CVBF reported core EPS of $0.37, above consensus estimate of $0.34.
Financial Performance
The $22 price target offers investors an attractive 28% total return.
Negative Factors
Stock Performance
Shares have fallen -31% since the start of 2023, making CVBF the second-worst performing in the index.
Cvb Financial (CVBF) vs. S&P 500 (SPY)
Market Cap
$2.30B
Dividend Yield4.84%
Average Volume (3M)916.63K
Price to Earnings (P/E)11.5
Beta (1Y)1.19
Revenue Growth2.84%
EPS Growth-9.63%
CountryUS
Employees1,089
SectorFinancial
Sector Strength86
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.44
Shares Outstanding139,091,670
10 Day Avg. Volume1,016,486
30 Day Avg. Volume916,627
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.23
Price to Cash Flow (P/CF)8.70
P/FCF Ratio7.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$24.75Price Target Upside50.82% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
Cvb Financial Business Overview & Revenue Model
Company DescriptionCVB Financial Corp (CVBF) is a financial holding company headquartered in Ontario, California. It operates primarily through its principal subsidiary, Citizens Business Bank, which serves a diverse range of clients including small to medium-sized businesses, professionals, and individuals. The bank's core offerings include commercial banking services such as lending, deposit products, and treasury management services, as well as trust and investment services.
How the Company Makes MoneyCVB Financial Corp generates revenue mainly through interest income from loans and leases, which constitute a significant portion of its earnings. The company earns money by charging interest on various loan products, including commercial and industrial loans, real estate loans, and consumer loans. Additionally, it derives income from interest on securities held in its investment portfolio. Non-interest income is generated through service charges and fees associated with deposit accounts, treasury management services, and other banking services. The company also benefits from strategic partnerships and investments that enhance its service offerings and customer base, contributing to its overall revenue.
Cvb Financial Financial Statement Overview
Summary
Cvb Financial exhibits a mixed financial performance. The income statement shows improved profitability despite declining revenue, while the balance sheet is strong with zero debt. However, cash flow issues and asset base contraction suggest challenges ahead.Income Statement
The income statement reveals a fluctuating revenue trend, with a notable decline in 2024 compared to 2023. Despite the revenue drop, net income improved significantly in 2024, leading to a higher net profit margin. However, the lack of EBITDA data for 2024 and the recent revenue decrease are concerning.65
Positive
Balance Sheet
The balance sheet shows strong equity with zero total debt in 2024, leading to an excellent debt-to-equity profile. The equity ratio remains healthy, indicating solid financial stability. However, the decrease in total assets over recent years could indicate potential contraction in asset base.78
Positive
Cash Flow
The cash flow statement highlights a stable operating cash flow in 2024 with no capital expenditures, resulting in positive free cash flow. However, the significant decline in free cash flow compared to 2023 is a potential risk factor.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 134.04M | 547.32M | 555.50M | 461.94M | 464.24M | Gross Profit |
| 134.04M | 665.66M | 555.50M | 461.94M | 464.24M | EBIT |
| 126.73M | 353.20M | 337.50M | 297.65M | 249.52M | EBITDA |
| 0.00 | 328.49M | 342.01M | 0.00 | 0.00 | Net Income Common Stockholders |
| 200.72M | 221.44M | 235.43M | 212.52M | 177.16M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 2.70B | 281.29M | 3.47B | 4.94B | 4.40B | Total Assets |
| 15.15B | 16.02B | 16.48B | 15.88B | 14.42B | Total Debt |
| 500.00M | 2.07B | 995.00M | 2.28M | 30.77M | Net Debt |
| -153.88M | 1.78B | 781.99M | -1.76B | -1.97B | Total Liabilities |
| 12.97B | 13.94B | 14.53B | 13.80B | 12.41B | Stockholders Equity |
| 2.19B | 2.08B | 1.95B | 2.08B | 2.01B |
| Cash Flow | Free Cash Flow | |||
| 249.76M | 291.11M | 268.37M | 190.56M | 180.42M | Operating Cash Flow |
| 249.76M | 295.63M | 273.73M | 195.24M | 185.10M | Investing Cash Flow |
| 852.75M | 864.95M | -1.18B | -1.73B | -1.27B | Financing Cash Flow |
| -1.18B | -754.08M | -625.85M | 1.31B | 2.86B |
Cvb Financial Technical Analysis
Negative
16.41
Price Trends
18.98
Negative
20.28
Negative
19.09
Negative
Market Momentum
-0.34
Negative
35.26
Neutral
21.49
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVBF, the sentiment is Negative. The current price of 16.41 is below the 20-day moving average (MA) of 17.93, below the 50-day MA of 18.98, and below the 200-day MA of 19.09, indicating a bearish trend. The MACD of -0.34 indicates Negative momentum. The RSI at 35.26 is Neutral, neither overbought nor oversold. The STOCH value of 21.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CVBF.
Cvb Financial Risk Analysis
Cvb Financial disclosed 48 risk factors in its most recent earnings report. Cvb Financial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cvb Financial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $2.03B | 10.16 | 8.85% | 4.04% | 5.54% | -8.57% | |
72 Outperform | $2.23B | 9.68 | 9.90% | 3.89% | 3.42% | 30.07% | |
72 Outperform | $2.31B | 12.03 | 6.52% | 4.23% | 6.21% | -16.59% | |
66 Neutral | $2.31B | 14.29 | 7.74% | 3.25% | 8.97% | 4.82% | |
65 Neutral | $2.25B | 14.76 | 4.39% | 5.92% | 6.86% | -12.06% | |
64 Neutral | $13.21B | 9.26 | 9.39% | 4.87% | 16.14% | -8.87% | |
61 Neutral | $2.30B | 11.50 | 9.35% | 4.84% | 2.84% | -9.63% |
* Financial Sector Average
Performance Comparison
CVBF
Cvb Financial
16.41
1.00
6.49%
BKU
BankUnited
29.65
5.57
23.13%
FRME
First Merchants
34.13
2.46
7.77%
INDB
Independent Bank
53.62
6.80
14.52%
SFNC
Simmons 1st Nat'l
17.82
0.75
4.39%
TOWN
TowneBank
30.64
5.25
20.68%
Cvb Financial Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -19.79% | Next Earnings Date: Apr 23, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted consistent profitability and strong capital positions, along with effective cost management and deposit growth. However, challenges were noted in the form of a declining loan portfolio, decreased interest income, and the impact of natural disasters. While there is optimism for future growth, particularly in loan origination and capital deployment, the current period shows a balance of positive and negative developments.Highlights
Consistent Profitability
Reported net earnings of $51 million or $0.36 per share for the fourth quarter of 2024, marking the 191st consecutive quarter of profitability.
Strong Capital Ratios
Reported a return on average tangible common equity of 14.3% and a common equity Tier 1 capital ratio of 16.2% for the fourth quarter of 2024.
Successful Deleveraging
Completed early redemption of a $1.3 billion bank term funding program, reducing interest expense by $15 million per quarter and increasing net interest margin by 13 basis points.
Deposit Growth
Total deposits and customer repurchase agreements increased by $505 million from December 31, 2023, including $315 million growth in nonmaturity deposits.
Effective Cost Management
Noninterest expense decreased by $355,000 compared to the third quarter of 2024, maintaining an efficiency ratio of 46.3%.
Lowlights
Loan Portfolio Decline
Total loans decreased by $368 million or 4% from December 31, 2023, with significant declines in commercial real estate loans by $277 million.
Decreased Interest Income
Net interest income decreased by $3.2 million or 2.8% quarter-over-quarter, due to balance sheet deleveraging and reduced borrowings.
Noninterest Income Reduction
Noninterest income for the fourth quarter of 2024 was $13.1 million compared to $19.2 million for the fourth quarter of 2023, partly due to decreases in BOLI and CRA-related investments.
Natural Disasters Impact
Wildfires in Los Angeles County impacted 14 properties with $7.4 million in loans, resulting in temporary closures of 6 centers.
Company Guidance
During the CVBF earnings call for the fourth quarter of 2024, the company reported net earnings of $51 million or $0.36 per share, marking its 191st consecutive quarter of profitability. They declared a $0.20 per share dividend, continuing their streak of 141 consecutive quarters of cash dividends. The return on average tangible common equity was 14.3%, and return on average assets was 1.3%. CVBF's common equity Tier 1 capital ratio stood at 16.2%, with a tangible common equity ratio of 9.8%. Net interest income decreased by $3.2 million quarter-over-quarter, while noninterest income rose by $269,000, and noninterest expense decreased by $355,000. The bank's total deposits and customer repurchase agreements reached $12.2 billion, including a $505 million increase from the previous year. Additionally, the company executed two sale-leaseback transactions, realizing gains of $16.8 million, and sold $155 million of available-for-sale investment securities at a loss of $16.7 million.Cvb Financial Corporate Events
DividendsFinancial Disclosures
CVB Financial Reports Strong Q4 2024 Performance
Positive
Jan 23, 2025
In January 2025, CVB Financial Corp. announced a presentation for institutional investors, reflecting their financial performance for the fourth quarter and year ended 2024. The company reported a net income of $51 million for Q4 2024 and a slight decrease in average loans compared to Q3 2024. Despite challenges, CVB Financial maintains strong asset quality and capital ratios, marking its 191st consecutive quarter of profitability and 141st quarter of cash dividends, underscoring its stable position in the banking industry.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.