EWBC Stock Analysis: East West Bancorp | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 17.163m USD | 12M Return: 22.7% | US27579R1041 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 105M
EPS Trend: 72.8%
Qual. Beats: 0
Rev. Trend: 76.3%
Qual. Beats: 0
Warnings
Tailwinds
Seasonality 11.7 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
East West Bancorp, Inc. (NASDAQ: EWBC) is the holding company for East West Bank, a Pasadena, California-based financial institution founded in 1973 that provides personal and commercial banking services across the United States. The company operates through three business segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other, offering deposit products, a broad range of loan products, and ancillary services including foreign exchange, treasury management, wealth management, and digital banking.
A defining feature of the business model is its focus on serving clients engaged in cross-border commerce between the United States and Asia, supported by specialized offerings such as trade finance, letters of credit, and international financing services. As a large-cap regional bank within the Financials sector, East West Bank occupies a niche position among U.S. lenders with deep expertise in U.S.–Asia trade and commercial lending.
- Net interest margin compresses on anticipated Fed rate cuts
- Commercial real estate loan losses rise from office exposure
- U.S.-Asia trade finance demand lifts commercial banking fees
| Net Income: 1.45b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.39 > 1.0 |
| NWC/Revenue: -1.03k% < 20% (prev -1.48k%; Δ 457.3% < -1%) |
| CFO/TA 0.02 > 3% & CFO 1.98b > Net Income 1.45b |
| Net Debt (-17.1b) to EBITDA (2.07b): -8.29 < 3 |
| Current Ratio: 0.31 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.6m) vs 12m ago -0.16% < -2% |
| Gross Margin: 62.20% > 18% (prev 49.43%; Δ 12.76% > 0.5%) |
| Asset Turnover: 5.84% > 50% (prev 5.20%; Δ 0.64% > 0%) |
| Interest Coverage Ratio: 1.13 > 6 (EBIT TTM 1.86b / Interest Expense TTM 1.65b) |
| A: -0.58 (Total Current Assets 21.3b - Total Current Liabilities 69.7b) / Total Assets 83.5b |
| B: 0.11 (Retained Earnings 8.80b / Total Assets 83.5b) |
| C: 0.02 (EBIT TTM 1.86b / Avg Total Assets 80.8b) |
| D: 0.12 (Book Value of Equity 9.25b / Total Liabilities 74.2b) |
| Altman-Z'' = -3.17 = D |
As of October 12, 2026, the stock is trading at USD 125.53 with a total of 663,698 shares traded. Over the past week, the price has changed by -0.54%, over one month by -2.14%, over three months by -3.59% and over the past year by +22.69%.
Current recommended Stop Loss: 122.20 (which is 2.7% or 1.3 ATR below the current price).
East West Bancorp has received a consensus analysts rating of 4.44. Therefore, it is recommended to buy EWBC.
- StrongBuy: 10
- Buy: 3
- Hold: 3
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 149.1 | 18.8% |
P/E Trailing = 12.2096
P/E Forward = 12.7226
P/S = 5.9418
P/B = 1.8448
P/EG = 5.5751
Revenue TTM = 4.72b USD
EBIT TTM = 1.86b USD
EBITDA TTM = 2.07b USD
Long Term Debt = 3.04b USD (from longTermDebt, last quarter)
Short Term Debt = 956.9m USD (from shortTermDebt, last quarter)
Debt = 4.16b USD (from shortLongTermDebtTotal, last quarter) + Leases 165.0m
Net Debt = -17.1b USD (calculated: Debt 4.16b - CCE 21.3b)
Enterprise Value = 43.5m USD (17.2b + Debt 4.16b - CCE 21.3b)
Interest Coverage Ratio = 1.13 (Ebit TTM 1.86b / Interest Expense TTM 1.65b)
EV/FCF = 0.02x (Enterprise Value 43.5m / FCF TTM 1.86b)
FCF Yield = 4.28k% (FCF TTM 1.86b / Enterprise Value 43.5m)
FCF Margin = 39.50% (FCF TTM 1.86b / Revenue TTM 4.72b)
Net Margin = 30.67% (Net Income TTM 1.45b / Revenue TTM 4.72b)
Gross Margin = 62.20% ((Revenue TTM 4.72b - Cost of Revenue TTM 1.78b) / Revenue TTM)
Gross Margin QoQ = 63.58% (prev 63.47%)
Tobins Q-Ratio = 0.00 (Enterprise Value 43.5m / Total Assets 83.5b)
Interest Expense / Debt = 39.63% (Interest Expense 1.65b / Debt 4.16b)
Taxrate = 22.13% (410.9m / 1.86b)
NOPAT = 1.45b (EBIT 1.86b * (1 - 22.13%))
Current Ratio = 0.31 (Total Current Assets 21.3b / Total Current Liabilities 69.7b)
Debt / Equity = 0.45 (Debt 4.16b / totalStockholderEquity, last quarter 9.25b)
Debt / EBITDA = -8.29 (Net Debt -17.1b / EBITDA 2.07b)
Debt / FCF = -9.19 (Net Debt -17.1b / FCF TTM 1.86b)
Total Stockholder Equity = 8.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.79% (Net Income 1.45b / Total Assets 83.5b)
RoE = 16.19% (Net Income TTM 1.45b / Total Stockholder Equity 8.93b)
RoCE = 15.52% (EBIT 1.86b / Capital Employed (Equity 8.93b + L.T.Debt 3.04b))
RoIC = 9.96% (NOPAT 1.45b / Invested Capital 14.5b)
WACC = 13.72% (E(17.2b)/V(21.3b) * Re(9.57%) + D(4.16b)/V(21.3b) * Rd(39.63%) * (1-Tc(0.22)))
Discount Rate = 9.57% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.94 | Cagr: -0.54%
[DCF] Terminal Value 62.60% ; FCFF base≈1.69b ; Y1≈1.94b ; Y5≈2.86b
[DCF] Fair Price = 285.0 (EV 21.9b - Net Debt -17.1b = Equity 39.1b / Shares 137.0m; r=13.72% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 72.76 | EPS CAGR: 6.61% | SUE: 0.23 | # QB: 0
Revenue Correlation: 76.32 | Revenue CAGR: 6.56% | SUE: 0.79 | # QB: 0
EPS current Quarter (2026-09-30): EPS=2.72 | Chg30d=+0.66% | Revisions=+17% | Analysts=15
EPS current Year (2026-12-31): EPS=10.70 | Chg30d=+0.56% | Revisions=+57% | GrowthEPS=+12.8% | GrowthRev=+9.1%
EPS next Year (2027-12-31): EPS=11.52 | Chg30d=+1.34% | Revisions=+62% | GrowthEPS=+7.7% | GrowthRev=+7.4%
[Analyst] Revisions Ratio: +67% (up=11, down=1)