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Fundamental analysis: Community West Bancshares (CWBC)

Awarener score: 7.8

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 7.5

• Business growth has been almost stagnant. It's been almost average when measured against peer companies.
• Community West Bancshares business trend is extremely stable, which is best. It looks well ranked against rivals.

Margins score: 7.3

• CWBC profit margins -on goods and services sold- are usually extremely poor. They stand slightly worse than rival companies.
• Business profit on sales tends to be hardly sufficient. It's weak when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually excellent. They remain rather normal in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still slightly better than similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain below average when measured against rivals.
• Total net profit tends to be excellent when confronted to sales. Company stands weak when measured against comparable firms.

Growth score: 4.6

• Community West Bancshares has an unknown gross margin growth, as there is not enough data to analyze. It's been impossible to compare to competitors.
• There is not sufficient data to estimate the operating income margin trend, which has been therefore unknown against comparable firms.
• Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a low speed. It was slightly better than rivals.
• In the previous years, growth on total net profit has been average, and encouraging in relation to peer companies.
• Earnings per share have grown at a normal rhythm in past years. It's been a slight improvement compared to industry peers.

Miscellaneous score: 3.0

• CWBC had to pay a lot of income taxes in relation to profits made in the past years. It's been worse than most peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.0

• Community West Bancshares usually gets sufficient returns on the resources it controls. It proves encouraging in relation to peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
• Profitability -in relation to owned resources- is usually quite good. It ranks similar to competitors.
• In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 6.8

• CWBC usually uses a modest portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments isn't too high. It stands encouraging in relation to rival firms.
• The company is usually somewhat investing in new property, plant, and equipment, to improve its operating capabilities, which is more than average in relation to industry peers.
• There was no available information regarding dividend yield. It came unknown against competitors.
• The company pays no dividend, so measuring its growth is meaningless. The company has behaved in an conservative way compared to similar firms.
• As no dividends are paid, it is useless trying to estimate their sustainability in time. Sustainability looks not applicable in regard to comparable companies.
• The company usually neither enlarges nor reduces the pool of investors, resulting in approximately the same mouths feeding on the pie of profits. It remains a slight improvement compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands close to average when compared to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 7.1

• Community West Bancshares has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
• Current ratio remains a mystery, as there was not sufficient Balance Sheet information. It turns to be unidentifiable against similar firms.
• All resources are company owned, with virtually no financial debt. Financial position is outstanding. The company could significantly borrow money if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains better than most rival firms.
• Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks weak when measured against rivals.
• Quick ratio is unavailable at this moment, due to lacking data. It's a pity we cannot compare it with peer firms.
• A conclusion on cash ratio could not be reached, as we lack inputs, which is unfortunate when trying to measure against similar enterprises.
• Usually, sales are on cash. It still ranks great when measured against peers.
• Days of inventory outstanding are not known. It comes up as a big question mark against competitors.
• We could not gauge the normal operating cycle of the company. It happens to be a mystery against peers.
• Unfortunately, we had not enough data to estimate the days of payables outstanding. It ranks unknown against industry peers.
• Cash conversion cycle remains unknown, due to not having enough inputs. It's incomparable against similar companies.
• Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
• There is insufficient data to conclude on the relationship of EBITDA and debt for this company. It ranks unknown against comparable enterprises.
• Revenues are quite good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks excellent in relation to similar firms.
• Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still better than most peer companies.

Valuation score: 8.5

• Community West Bancshares looks extremely cheap in relation to profits and financial position. It happens to be encouraging in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a slight improvement compared to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands well ranked against similar companies.
• The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still more than average in relation to industry firms.
• In the past twelve months, the company has enlarged the pool of investors by issuing new shares. Future profits need to be high enough to justify the measure, as the pie of earnings will now be split among somewhat more stockholders. It came up in a very weak position compared to peer ventures.
• This company is sitting in a mountain of cash. It's very well poised to substantially increase stockholder payments, or to fund new business projects. It looks somewhat better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be attractive. It ranks similar to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a three or four to one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
• The relation between the stock price and accounting book value might be more than reasonable. It's important both to check this metric through time and to compare it with rival companies. The company remains slightly worse than peer firms.
• In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be encouraging in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still a slight improvement compared to peer companies.

Total score: 6.5

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Awarener score: 7.8

Conclusion

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