EWBC Stock Analysis: East West Bancorp | NASDAQ
Banks - Regional | NASDAQ, USA | Market Cap: 17.685m USD | 12M Return: 21.8% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 129M
EPS Trend: 47.7%
Qual. Beats: 1
Rev. Trend: 79.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Seasonality 10.5 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 a U.S. bank holding company that operates East West Bank, headquartered in Pasadena, California. Founded in 1973 and publicly traded since 1999, the company is classified as a large-cap regional bank within the Financials sector. As a bank holding company, EWBCs primary operations are conducted through its banking subsidiary, which is the typical corporate structure for U.S. depository institutions subject to regulation by the Federal Reserve and the OCC.
The company reports through three operating segments: Consumer and Business Banking, Commercial Banking, and Treasury and Other. This segmentation is common among regional banks, separating retail and small-business activities from larger commercial relationships and balance-sheet management functions such as funding, liquidity, and interest-rate positioning.
EWBCs deposit franchise includes personal and business checking accounts, savings accounts, money market accounts, and time deposits. On the lending side, the company offers a broad range of products covering mortgage and home equity loans, commercial and residential real estate finance, construction lending, working capital lines of credit, trade finance, letters of credit, asset-based lending, project finance, and equipment financing.
A distinguishing feature of East West Banks business model is its focus on cross-border banking between the United States and Asia. Trade finance, letters of credit, foreign exchange, and treasury management services are core offerings supporting clients engaged in trans-Pacific commerce, an established niche within the regional banking sector. The company also provides wealth management, interest-rate and commodity hedging, and digital banking channels (mobile and online).
- Net interest margin compresses as Fed cuts rates
- US-China trade tensions pressure Asia-linked commercial loans
- Commercial real estate exposure raises credit loss provisions
| Net Income: 1.39b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA 0.01 > 1.0 |
| NWC/Revenue: -13.12% < 20% (prev -1.47k%; Δ 1.46k% < -1%) |
| CFO/TA 0.02 > 3% & CFO 1.65b > Net Income 1.39b |
| Net Debt (3.17b) to EBITDA (2.11b): 1.50 < 3 |
| Current Ratio: 0.61 > 1.5 & < 3 |
| Outstanding Shares: last quarter (138.9m) vs 12m ago -0.27% < -2% |
| Gross Margin: 61.75% > 18% (prev 48.30%; Δ 13.45% > 0.5%) |
| Asset Turnover: 5.95% > 50% (prev 5.30%; Δ 0.66% > 0%) |
| Interest Coverage Ratio: 1.08 > 6 (EBIT TTM 1.82b / Interest Expense TTM 1.69b) |
| A: -0.01 (Total Current Assets 973.2m - Total Current Liabilities 1.59b) / Total Assets 82.9b |
| B: 0.10 (Retained Earnings 8.55b / Total Assets 82.9b) |
| C: 0.02 (EBIT TTM 1.82b / Avg Total Assets 79.5b) |
| D: 0.12 (Book Value of Equity 9.00b / Total Liabilities 73.9b) |
| Altman-Z'' = 0.57 = B |
As of July 05, 2026, the stock is trading at USD 129.30 with a total of 1,142,700 shares traded. Over the past week, the price has changed by -0.72%, over one month by +6.73%, over three months by +18.35% and over the past year by +21.82%.
Current recommended Stop Loss: 122.60 (which is 5.2% or 2.3 ATR below the current price).
East West Bancorp has received a consensus analysts rating of 4.00. Therefore, it is recommended to buy EWBC.
- StrongBuy: 5
- Buy: 2
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 139.1 | 7.6% |
P/E Trailing = 12.8961
P/E Forward = 14.9031
P/S = 6.3494
P/B = 1.9651
P/EG = 5.5751
Revenue TTM = 4.73b USD
EBIT TTM = 1.82b USD
EBITDA TTM = 2.11b USD
Long Term Debt = 3.04b USD (from longTermDebt, last quarter)
Short Term Debt = 1.59b USD (from shortTermDebt, last quarter)
Debt = 3.83b USD (from shortLongTermDebtTotal, last quarter) + Leases 148.7m
Net Debt = 3.17b USD (calculated: Debt 3.83b - CCE 657.1m)
Enterprise Value = 20.9b USD (17.7b + Debt 3.83b - CCE 657.1m)
Interest Coverage Ratio = 1.08 (Ebit TTM 1.82b / Interest Expense TTM 1.69b)
EV/FCF = 13.43x (Enterprise Value 20.9b / FCF TTM 1.55b)
FCF Yield = 7.45% (FCF TTM 1.55b / Enterprise Value 20.9b)
FCF Margin = 32.82% (FCF TTM 1.55b / Revenue TTM 4.73b)
Net Margin = 29.43% (Net Income TTM 1.39b / Revenue TTM 4.73b)
Gross Margin = 61.75% ((Revenue TTM 4.73b - Cost of Revenue TTM 1.81b) / Revenue TTM)
Gross Margin QoQ = 63.74% (prev 64.63%)
Tobins Q-Ratio = 0.25 (Enterprise Value 20.9b / Total Assets 82.9b)
Interest Expense / Debt = 44.25% (Interest Expense 1.69b / Debt 3.83b)
Taxrate = 22.27% (399.0m / 1.79b)
NOPAT = 1.42b (EBIT 1.82b * (1 - 22.27%))
Current Ratio = 0.61 (Total Current Assets 973.2m / Total Current Liabilities 1.59b)
Debt / Equity = 0.43 (Debt 3.83b / totalStockholderEquity, last quarter 9.00b)
Debt / EBITDA = 1.50 (Net Debt 3.17b / EBITDA 2.11b)
Debt / FCF = 2.04 (Net Debt 3.17b / FCF TTM 1.55b)
Total Stockholder Equity = 8.67b (last 4 quarters mean from totalStockholderEquity)
RoA = 1.75% (Net Income 1.39b / Total Assets 82.9b)
RoE = 16.06% (Net Income TTM 1.39b / Total Stockholder Equity 8.67b)
RoCE = 15.56% (EBIT 1.82b / Capital Employed (Equity 8.67b + L.T.Debt 3.04b))
RoIC = 1.71% (NOPAT 1.42b / Invested Capital 82.6b)
WACC = 14.04% (E(17.7b)/V(21.5b) * Re(9.63%) + D(3.83b)/V(21.5b) * Rd(44.25%) * (1-Tc(0.22)))
Discount Rate = 9.63% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -73.33 | Cagr: -0.79%
[DCF] Terminal Value 59.80% ; FCFF base≈1.50b ; Y1≈1.62b ; Y5≈1.99b
[DCF] Fair Price = 88.63 (EV 15.3b - Net Debt 3.17b = Equity 12.1b / Shares 137.0m; r=14.04% [WACC]; 5y FCF grow 9.14% → 2.50% )
EPS Correlation: 47.71 | EPS CAGR: 3.36% | SUE: 1.15 | # QB: 1
Revenue Correlation: 79.07 | Revenue CAGR: 8.56% | SUE: 0.80 | # QB: 0
EPS current Quarter (2026-06-30): EPS=2.64 | Chg30d=-0.58% | Revisions=+83% | Analysts=15
EPS next Quarter (2026-09-30): EPS=2.70 | Chg30d=-0.36% | Revisions=+61% | Analysts=15
EPS current Year (2026-12-31): EPS=10.62 | Chg30d=-0.27% | Revisions=+82% | GrowthEPS=+12.0% | GrowthRev=+8.6%
EPS next Year (2027-12-31): EPS=11.30 | Chg30d=-0.04% | Revisions=+72% | GrowthEPS=+6.3% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: +85% (up=56, down=3)