East West Bancorp, Inc. (EWBC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SouthState Corp.

Commerce Bancshares, Inc. (Missouri)

Fifth Third Bancorp

First Citizens BancShares, Inc. (North Carolina)

East West Bancorp, Inc.

Ally Financial, Inc.

Cullen/Frost Bankers, Inc.

Truist Financial Corp.

M&T Bank Corp.

First Horizon Corp. (Tennessee)

Fiserv, Inc.

Why is East West Bancorp, Inc. ?

High Profitability with a Net Interest Margin of 13.07%

Strong Long Term Fundamental Strength with a 18.15% CAGR growth in Net Profits

Positive results in Jun 26

ROCE(HY) Highest at 1.78%
DIVIDEND PER SHARE(HY) Highest at USD 0
NII(Q) Highest at USD 684.65 MM

With ROA of 0.89%, it has a attractive valuation with a 1.91 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 26.42%, its profits have risen by 13.7% ; the PEG ratio of the company is 0.9

High Institutional Holdings at 100%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 4.21% over the previous quarter.

Consistent Returns over the last 3 years

Along with generating 26.42% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to East West 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 East West Bancorp, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

East West Bancorp, Inc.

26.42%

3.32

25.85%

S&P 500

16.26%

1.25

12.97%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.90%

EBIT Growth (5y)

19.61%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

25.20%

Pledged Shares

Institutional Holding

95.79%

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

1.91

EV to EBIT

8.97

EV to EBITDA

7.86

EV to Capital Employed

2.48

EV to Sales

3.16

PEG Ratio

0.88

Dividend Yield

0.70%

ROCE (Latest)

27.67%

ROE (Latest)

14.89%

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

Mildly Bearish

OBV

Mildly Bullish

No Trend

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

12What is working for the Company

ROCE(HY)

Highest at 1.78%

DIVIDEND PER SHARE(HY)

Highest at USD 0

NII(Q)

Highest at USD 684.65 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 31.13%

CASH AND EQV(HY)

Highest at USD 5,758.43 MM

OPERATING PROFIT(Q)

Highest at USD 464.64 MM

PRE-TAX PROFIT(Q)

Highest at USD 467.52 MM

-9What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 1,373.78 MM

GROSS NPA (%)

ROCE(HY)

Lowest at 1.78%

CREDIT DEPOSIT RATIO(HY)

Lowest at 84.12%

Here's what is working for East West Bancorp, Inc.

NII

Highest at USD 684.65 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Dividend per share

Highest at USD 0 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Profit

Highest at USD 464.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Pre-Tax Profit

Highest at USD 467.52 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Cash and Eqv

Highest at USD 5,758.43 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend Payout Ratio

Highest at 31.13%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Non Performing Loans (%)

Highest at 0.38% and Grown

In each half year in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are increasing

Non Performing Loans (%)

Operating Cash Flow

Lowest at USD 1,373.78 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Credit Deposit Ratio

Lowest at 84.12%

in the last four Semi-Annual periods

MOJO Watch

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

Credit Deposit Ratio (%)