Community West Bancshares (CWBC) AI Stock Analysis

• Market Cap: $317.38M
• Dividend Yield: 2.88%
• Average Volume (3M): 53.42K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 1.07
• Revenue Growth: 52.97%
• EPS Growth: -75.95%
• Country: US
• Employees: 346
• Sector: Financial
• Sector Strength: 82
• Industry: Banks - Regional
• EPS (TTM): 0.52
• Shares Outstanding: 19,061,008
• 10 Day Avg. Volume: 46,235
• 30 Day Avg. Volume: 53,418
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.24
• Price to Cash Flow (P/CF): 92.80
• P/FCF Ratio: 8.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $23.00
• Price Target Upside: 38.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Community West Bancshares faces challenges with declining profitability and bearish technical indicators. However, strategic management changes and stable leverage provide some optimism. High valuation is a concern, potentially limiting upside.

Community West Bancshares Business Overview & Revenue Model

Company Description

Community West Bancshares (CWBC) is a bank holding company headquartered in Goleta, California. It operates through its wholly-owned subsidiary, Community West Bank, which provides a range of financial services to individuals and businesses. The bank primarily focuses on offering commercial banking services, including lending, deposit products, and cash management services. Community West Bank serves the financial needs of the communities in the Central Coast area of California.

How the Company Makes Money

Community West Bancshares generates revenue primarily through interest income from its loan portfolio. The bank offers various types of loans, including commercial real estate loans, commercial and industrial loans, and agricultural loans. In addition to interest income, the company earns revenue from fees associated with its deposit products and other financial services. Community West Bank also benefits from strategic partnerships and collaborations that enhance its service offerings and customer reach. The bank's ability to attract low-cost deposits is a significant factor in its earnings, as it allows for a lower cost of funds and higher net interest margins.

Community West Bancshares Financial Statement Overview

Summary

Community West Bancshares shows strong revenue growth and improved leverage, but declining profitability margins and cash flows pose potential risks. The balance sheet is stable, but profitability and cash flow trends warrant close observation.

Income Statement

The company's revenue has shown strong growth with a 98.5% increase from 2023 to 2024. Gross profit margin is excellent at 100% due to the nature of the banking industry. However, the net profit margin has decreased significantly from 44.4% in 2023 to 6.7% in 2024, indicating lower profitability. EBIT is not available for 2024, which limits margin analysis.

Balance Sheet

The debt-to-equity ratio decreased to 0.56 in 2024 from 0.77 in 2023, reflecting improved capital structure. Return on equity (ROE) declined from 12.33% to 2.11%, which is a concern. The equity ratio improved to 10.3% from 8.5%. Overall, the balance sheet shows improved leverage but weaker profitability.

Cash Flow

Operating cash flow decreased by 20.3% in 2024, and free cash flow decreased slightly by 4.9%. The operating cash flow to net income ratio is 2.9, indicating strong cash generation relative to net income, but the decline in cash flows should be monitored.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
114.17M	57.52M	49.79M	46.13M	40.50M
	Gross Profit
114.17M	9.88M	49.79M	46.13M	40.50M
	EBIT
0.00	-10.30M	22.04M	18.31M	11.76M
	EBITDA
0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
7.67M	25.54M	13.45M	13.10M	8.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
423.81M	16.70M	64.69M	228.09M	77.85M
	Total Assets
3.52B	2.43B	1.09B	1.16B	975.43M
	Total Debt
203.33M	158.86M	90.00M	90.00M	105.00M
	Net Debt
82.93M	105.14M	25.31M	-118.38M	44.46M
	Total Liabilities
3.16B	2.23B	978.85M	90.00M	105.00M
	Stockholders Equity
362.69M	207.06M	112.65M	101.38M	89.01M
Cash Flow		Free Cash Flow
17.16M	18.05M	5.62M	22.01M	15.51M
	Operating Cash Flow
22.20M	27.85M	5.86M	22.22M	15.84M
	Investing Cash Flow
64.47M	24.19M	-72.89M	-42.22M	-91.57M
	Financing Cash Flow
-20.00M	-29.49M	-76.65M	167.84M	53.60M

Community West Bancshares Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 16.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWBC, the sentiment is Negative. The current price of 16.6 is below the 20-day moving average (MA) of 18.03, below the 50-day MA of 18.61, and below the 200-day MA of 19.16, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 49.72 is Neutral, neither overbought nor oversold. The STOCH value of 60.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CWBC.

Community West Bancshares Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRBA	77 Outperform	$341.33M	8.13	10.83%	1.77%	31.85%	69.42%
HBCP	75 Outperform	$337.76M	9.25	9.54%	2.46%	11.26%	-8.61%
WTBA	73 Outperform	$317.80M	13.26	10.62%	5.30%	16.51%	-1.01%
Sector *	64 Neutral	$12.70B	9.08	9.19%	4.89%	16.29%	-8.64%
RRBI	61 Neutral	$329.87M	9.84	10.98%	0.80%	12.88%	2.03%
CWBC	59 Neutral	$317.38M	37.34	2.69%	2.88%	52.97%	-75.95%
BMRC	57 Neutral	$329.91M	―	-1.92%	4.88%	-16.98%	-141.53%

Community West Bancshares Corporate Events

Community West Bancshares Appoints New Chief Credit Officer

On March 17, 2025, Community West Bank appointed Hinson M. Thomas as Executive Vice President and Chief Credit Officer. With over 30 years of experience in credit risk management and commercial banking, Thomas will oversee the bank’s Credit Administration Division and manage company-wide credit quality. His appointment is expected to drive strategic growth and enhance the bank’s operations, aligning with its commitment to deliver outstanding results for stakeholders.

Community West Bancshares Chief Credit Officer Resigns

Patrick A. Luis, Chief Credit Officer of Community West Bank, resigned effective February 28, 2025, without any disagreements with the company. He entered a Termination Agreement entitling him to wages, unused vacation pay, and an accelerated benefit, with provisions for his unvested shares to vest fully, and potential severance pay to ensure total benefits reach $380,000.

Community West Bancshares Announces Leadership Changes and New Agreements

On January 30, 2025, Central Valley Community Bancorp and its subsidiary, Central Valley Community Bank, entered into new employment agreements with six executive officers, replacing prior agreements. These agreements include detailed compensation plans, benefits, and provisions for termination under specific conditions. Additionally, salary continuation and split dollar life insurance agreements were made or amended with certain executives, designed to provide long-term financial security and benefits. Separately, Patrick A. Luis, the Chief Credit Officer, announced his resignation effective February 28, 2025, after nearly five years of service.

Community West Bancshares to Attend Janney 2025 CEO Forum

Community West Bancshares announced that its executive management will attend the Janney 2025 CEO Forum on January 29-30, 2025. This participation signifies the company’s ongoing efforts to engage with investors and stakeholders, potentially impacting its market presence and stakeholder relationships.