Community West Bancshares (CVCY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Community West Bancshares

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BCB Bancorp, Inc.

Codorus Valley Bancorp, Inc.

California BanCorp

Why is Community West Bancshares ?

High Profitability with a Net Interest Margin of 11.73%

With a growth in Interest of NAN%, the company declared Very Positive results in Jun 25

The company has declared positive results for the last 2 consecutive quarters
NII(Q) Highest at USD 33.54 MM
OPERATING CASH FLOW(Y) Highest at USD 34.49 MM
PRE-TAX PROFIT(Q) At USD 10.76 MM has Grown at 138.7%

With ROA of 0.20%, it has a very expensive valuation with a 0.92 Price to Book Value

Over the past year, while the stock has generated a return of 2.06%, its profits have fallen by -43.3%

High Institutional Holdings at 53.26%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Community West Bancshares should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Community West Bancshares for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Community West Bancshares

7.4%

1.36

25.65%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

22.55%

EBIT Growth (5y)

6.14%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

107.58%

Pledged Shares

Institutional Holding

53.26%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.92

EV to EBIT

26.94

EV to EBITDA

21.51

EV to Capital Employed

0.93

EV to Sales

2.15

PEG Ratio

Dividend Yield

ROCE (Latest)

3.45%

ROE (Latest)

3.39%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

29What is working for the Company

NII(Q)

Highest at USD 33.54 MM

OPERATING CASH FLOW(Y)

Highest at USD 34.49 MM

PRE-TAX PROFIT(Q)

At USD 10.76 MM has Grown at 138.7%

NET PROFIT(Q)

At USD 7.83 MM has Grown at 148.48%

DIVIDEND PAYOUT RATIO(Y)

Highest at 29.18%

CASH AND EQV(HY)

Highest at USD 83.87 MM

NET SALES(Q)

Highest at USD 46.26 MM

-2What is not working for the Company

INTEREST(9M)

At USD 39.13 MM has Grown at 43.87%

Here's what is working for Community West Bancshares

NII

Highest at USD 33.54 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Pre-Tax Profit

At USD 10.76 MM has Grown at 138.7%

over average net sales of the previous four periods of USD 4.51 MM

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 7.83 MM has Grown at 148.48%

over average net sales of the previous four periods of USD 3.15 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Operating Cash Flow

Highest at USD 34.49 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 46.26 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Cash and Eqv

Highest at USD 83.87 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 29.18%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

CASA

Highest at 11.66%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Community West Bancshares

Interest

At USD 39.13 MM has Grown at 43.87%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)