Central Pacific Financial Corp. Fundamental Analysis (NYSE: CPF)
Central Pacific Financial Corp. Fundamental Analysis (NYSE: CPF)
Central Pacific Financial Corp. (NYSE: CPF) shows strong financial fundamentals with a PE ratio of 11.93, profit margin of 26.36%, and ROE of 14.00%. The company generates $0.3B in annual revenue with moderate year-over-year growth of 6.42%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CPF's fundamental strength across five key dimensions:
Efficiency Score
WeakCPF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCPF trades at attractive valuation levels.
Growth Score
ExcellentCPF delivers strong and consistent growth momentum.
Financial Health Score
ModerateCPF shows balanced financial health with some risks.
Profitability Score
ModerateCPF maintains healthy but balanced margins.
Key Financial Metrics
Is CPF Expensive or Cheap?
P/E Ratio
CPF trades at 11.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CPF's PEG of 0.30 indicates potential undervaluation.
Price to Book
The market values Central Pacific Financial Corp. at 1.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.93 times EBITDA. This signals the market has high growth expectations.
How Well Does CPF Make Money?
Net Profit Margin
For every $100 in sales, Central Pacific Financial Corp. keeps $26.36 as profit after all expenses.
Operating Margin
Core operations generate 25.55 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.00 in profit for every $100 of shareholder equity.
ROA
Central Pacific Financial Corp. generates $1.11 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Central Pacific Financial Corp. generates strong operating cash flow of $104.39M, reflecting robust business health.
Free Cash Flow
Central Pacific Financial Corp. generates strong free cash flow of $99.10M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.80 in free cash annually.
FCF Yield
CPF converts 10.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.30
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How CPF Stacks Against Its Sector Peers
| Metric | CPF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.93 | 20.76 | Better (Cheaper) |
| ROE | 14.00% | 644.00% | Weak |
| Net Margin | 26.36% | -1529.00% (disorted) | Strong |
| Debt/Equity | 0.17 | 0.88 | Strong (Low Leverage) |
| Current Ratio | 0.27 | 830.27 | Weak Liquidity |
| ROA | 1.11% | -577.00% (disorted) | Weak |
CPF outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Central Pacific Financial Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
47.96%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
118.68%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
33.52%
Industry Style: Value, Dividend, Cyclical
High Growth