Customers Bancorp, Inc. (CUBI) 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

Customers Bancorp, Inc.

First Busey Corp.

Stock Yards Bancorp, Inc.

1st Source Corp.

National Bank Holdings Corp.

First Bancorp (North Carolina)

Heartland Financial USA, Inc.

Lakeland Financial Corp. (Indiana)

TriCo Bancshares

Merchants Bancorp (Indiana)

Westamerica Bancorporation

Why is Customers Bancorp, Inc. ?

Healthy long term growth as Net profit has grown by an annual rate of 19.81%

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

The company has declared positive results in Jan 70 after 3 consecutive negative quarters
OPERATING CASH FLOW(Y) Highest at USD 414.07 MM
GROSS NPA (%)(Q) Lowest at 0.18%
NII(Q) Highest at USD 176.7 MM

With ROA of 0.43%, it has a fair valuation with a 0.92 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 28.51%, its profits have fallen by -41.2%

Market Beating Performance

The stock has generated a return of 28.51% in the last 1 year, much higher than market (S&P 500) returns of 13.22%

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Customers Bancorp, Inc. 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 Customers Bancorp, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Customers Bancorp, Inc.

28.51%

1.61

40.25%

S&P 500

13.22%

0.65

20.20%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.09%

EBIT Growth (5y)

8.09%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

Pledged Shares

Institutional Holding

100.00%

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

-3.17

EV to EBITDA

-2.56

EV to Capital Employed

1.49

EV to Sales

-0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

-47.06%

ROE (Latest)

7.76%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Dow Theory

Mildly Bullish

No Trend

OBV

Mildly Bearish

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

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 414.07 MM

GROSS NPA (%)

NII(Q)

Highest at USD 176.7 MM

CASH AND EQV(HY)

Highest at USD 135.14 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 81.05%

OPERATING PROFIT(Q)

Highest at USD 80.7 MM

OPERATING PROFIT MARGIN(Q)

Highest at 24.6 %

PRE-TAX PROFIT(Q)

Highest at USD 78.9 MM

EPS(Q)

Highest at USD 1.73

0What is not working for the Company

NO KEY NEGATIVE TRIGGERS

Here's what is working for Customers Bancorp, Inc.

Operating Cash Flow

Highest at USD 414.07 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Non Performing Loans (%)

Lowest at 0.18%

in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 176.7 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Operating Profit

Highest at USD 80.7 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 24.6 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 78.9 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 78.9 MM has Grown at 42.04%

over average net sales of the previous four periods of USD 55.55 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

EPS

Highest at USD 1.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 135.14 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Credit Deposit Ratio

Highest at 81.05%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Here's what is not working for Customers Bancorp, Inc.

Capital Adequacy Ratio

Lowest at 12.59%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is deteriorating.

CAR (%)