EWBC Stock Analysis: East West Bancorp | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 18.002m USD | 12M Return: 32% | US27579R1041 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 110M
EPS Trend: 88.5%
Qual. Beats: 0
Rev. Trend: 74.5%
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: 1.46b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.35 > 1.0 |
| NWC/Revenue: -1.04k% < 20% (prev -1.48k%; Δ 439.4% < -1%) |
| CFO/TA 0.02 > 3% & CFO 1.98b > Net Income 1.46b |
| Net Debt (-18.8b) to EBITDA (2.10b): -8.93 < 3 |
| Current Ratio: 0.32 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.5m) vs 12m ago -0.45% < -2% |
| Gross Margin: 63.04% > 18% (prev 51.70%; Δ 11.34% > 0.5%) |
| Asset Turnover: 5.70% > 50% (prev 5.19%; Δ 0.51% > 0%) |
| Interest Coverage Ratio: 1.18 > 6 (EBIT TTM 1.89b / Interest Expense TTM 1.60b) |
| A: -0.57 (Total Current Assets 23.1b - Total Current Liabilities 72.5b) / Total Assets 86.0b |
| B: 0.11 (Retained Earnings 9.07b / Total Assets 86.0b) |
| C: 0.02 (EBIT TTM 1.89b / Avg Total Assets 82.8b) |
| D: 0.12 (Book Value of Equity 9.04b / Total Liabilities 77.0b) |
| Altman-Z'' = -3.14 = D |
As of October 26, 2026, the stock is trading at USD 131.19 with a total of 1,077,829 shares traded. Over the past week, the price has changed by +3.40%, over one month by +5.38%, over three months by +1.05% and over the past year by +31.97%.
Current recommended Stop Loss: 125.30 (which is 4.5% or 2.4 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 | 150 | 14.3% |
P/E Trailing = 12.4895
P/E Forward = 12.7226
P/S = 6.173
P/B = 1.8448
P/EG = 5.5751
Revenue TTM = 4.72b USD
EBIT TTM = 1.89b USD
EBITDA TTM = 2.10b USD
Long Term Debt = 3.04b USD (from longTermDebt, last fiscal year)
Short Term Debt = 964.0m USD (from shortTermDebt, last quarter)
Debt = 4.34b USD (from shortLongTermDebtTotal, last quarter) + Leases 165.0m
Net Debt = -18.8b USD (calculated: Debt 4.34b - CCE 23.1b)
Enterprise Value = 18.0b USD (floored to Market Cap, CCE > MCap+Debt)
Interest Coverage Ratio = 1.18 (Ebit TTM 1.89b / Interest Expense TTM 1.60b)
EV/FCF = 9.66x (Enterprise Value 18.0b / FCF TTM 1.86b)
FCF Yield = 10.35% (FCF TTM 1.86b / Enterprise Value 18.0b)
FCF Margin = 39.44% (FCF TTM 1.86b / Revenue TTM 4.72b)
Net Margin = 30.91% (Net Income TTM 1.46b / Revenue TTM 4.72b)
Gross Margin = 63.04% ((Revenue TTM 4.72b - Cost of Revenue TTM 1.75b) / Revenue TTM)
Gross Margin QoQ = 63.30% (prev 63.58%)
Tobins Q-Ratio = 0.21 (Enterprise Value 18.0b / Total Assets 86.0b)
Interest Expense / Debt = 36.91% (Interest Expense 1.60b / Debt 4.34b)
Taxrate = 22.61% (426.6m / 1.89b)
NOPAT = 1.46b (EBIT 1.89b * (1 - 22.61%))
Current Ratio = 0.32 (Total Current Assets 23.1b / Total Current Liabilities 72.5b)
Debt / Equity = 0.48 (Debt 4.34b / totalStockholderEquity, last quarter 9.04b)
Debt / EBITDA = -8.93 (Net Debt -18.8b / EBITDA 2.10b)
Debt / FCF = -10.07 (Net Debt -18.8b / FCF TTM 1.86b)
Total Stockholder Equity = 9.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.76% (Net Income 1.46b / Total Assets 86.0b)
RoE = 16.14% (Net Income TTM 1.46b / Total Stockholder Equity 9.05b)
RoCE = 15.62% (EBIT 1.89b / Capital Employed (Equity 9.05b + L.T.Debt 3.04b))
RoIC = 10.22% (NOPAT 1.46b / Invested Capital 14.3b)
WACC = 12.87% (E(18.0b)/V(22.3b) * Re(9.09%) + D(4.34b)/V(22.3b) * Rd(36.91%) * (1-Tc(0.23)))
Discount Rate = 9.09% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.39 | Cagr: -0.43%
[DCF] Terminal Value 64.78% ; FCFF base≈1.69b ; Y1≈1.94b ; Y5≈2.86b
[DCF] Fair Price = 310.7 (EV 23.8b - Net Debt -18.8b = Equity 42.6b / Shares 137.0m; r=12.87% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 88.55 | EPS CAGR: 9.61% | SUE: 0.80 | # QB: 0
Revenue Correlation: 74.46 | Revenue CAGR: 5.90% | SUE: 0.83 | # QB: 0
EPS current Quarter (2027-03-31): EPS=2.72 | Chg30d=+0.65% | Revisions=+62% | Analysts=11
EPS current Year (2026-12-31): EPS=10.79 | Chg30d=+1.26% | Revisions=+77% | GrowthEPS=+13.7% | GrowthRev=+9.7%
EPS next Year (2027-12-31): EPS=11.73 | Chg30d=+2.90% | Revisions=+79% | GrowthEPS=+8.8% | GrowthRev=+8.2%
[Analyst] Revisions Ratio: +90% (up=26, down=0)