East West Bancorp (EWBC) Stock Analysis
This is a peer-relative look at East West Bancorp (EWBC): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Banks peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | EWBC |
|---|---|
| Name | East West Bancorp Inc. |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Banks |
| GICS Industry | Banks |
| GICS Sub-Industry | Regional Banks |
| Market Capitalization | 17.65 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | February 3, 1999 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Total Return (1Y) | 30.57% | 30.28% |
| Total Return (3Y, Annualized) | 36.90% | 26.57% |
| Total Return (5Y, Annualized) | 12.56% | 9.43% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 23.01% | 24.34% |
| Beta (5Y) | 0.98 | 0.72 |
| Max Drawdown (5Y) | -54.06% | -43.36% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 1.14 | 1.08 |
| Sortino Ratio (1Y) | 1.69 | 1.61 |
Profitability
ROE (TTM)
East West Bancorp (EWBC) posts ROE of 16.57%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
EWBC
Banks industry group
16.57%
Group distribution
- Max
- 19.84%
- EWBC
- 16.57%
- Q3
- 13.67%
- Median
- 11.49%
- Q1
- 9.50%
- Min
- 3.64%
Largest peers
- JPM
- 18.01%
- EWBC
- 16.57%
- RY
- 16.21%
- HSBC
- 14.22%
- WFC
- 12.91%
- BAC
- 10.73%
- MUFG
- 9.46%
Net Margin (TTM)
East West Bancorp (EWBC) keeps 50.06% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.
EWBC
Banks industry group
50.06%
Group distribution
- EWBC
- 50.06%
- Max
- 47.19%
- Q3
- 35.25%
- Median
- 31.21%
- Q1
- 27.11%
- Min
- 14.93%
Largest peers
- EWBC
- 50.06%
- HSBC
- 41.16%
- JPM
- 34.59%
- RY
- 33.87%
- BAC
- 28.06%
- WFC
- 27.64%
- MUFG
- 27.45%
Operating Margin (TTM)
operating margin is set aside for East West Bancorp (EWBC) in Banks: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| ROE (TTM) | 16.57% | 11.49% |
| ROA (TTM) | 1.76% | 1.24% |
| Net Margin (TTM) | 50.06% | 31.21% |
| Operating Margin (TTM) | -- | -- |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
East West Bancorp (EWBC) grew revenue 12.86%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
East West Bancorp (EWBC) grew earnings per share 14.29%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 12.86% | 11.23% |
| Revenue Growth (3Y CAGR) | 7.70% | 6.33% |
| EPS Growth (YoY) | 14.29% | 16.14% |
| EPS Growth (3Y CAGR) | 6.33% | 3.15% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for East West Bancorp (EWBC) in Banks: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for East West Bancorp (EWBC) in Banks: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
East West Bancorp (EWBC) has dividend yield of 2.32%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
EWBC
Banks industry group
2.32%
Group distribution
- Max
- 5.79%
- Q3
- 3.18%
- Median
- 2.39%
- EWBC
- 2.32%
- Q1
- 1.20%
- Min
- 0.00%
Largest peers
- MUFG
- 406.81%
- RY
- 3.23%
- BAC
- 2.33%
- EWBC
- 2.32%
- WFC
- 2.19%
- JPM
- 1.82%
- HSBC
- 0.86%
Dividend Payout Ratio (TTM)
East West Bancorp (EWBC) has payout ratio of 28.52%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
EWBC
Banks industry group
28.52%
Group distribution
- Max
- 70.75%
- Q3
- 41.28%
- Median
- 29.26%
- EWBC
- 28.52%
- Q1
- 18.98%
- Min
- 0.00%
Largest peers
- HSBC
- 53.57%
- RY
- 41.49%
- MUFG
- 34.74%
- EWBC
- 28.52%
- BAC
- 27.62%
- WFC
- 26.09%
- JPM
- 25.80%
Dividend Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.32% | 2.39% |
| Dividend Payout Ratio (TTM) | 28.52% | 29.26% |
Valuation
P/E Ratio (TTM)
East West Bancorp (EWBC) trades at P/E ratio of 12.25, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
EWBC
Banks industry group
12.25
Group distribution
- Max
- 18.16
- Q3
- 13.75
- EWBC
- 12.25
- Median
- 11.81
- Q1
- 10.64
- Min
- 6.49
Largest peers
- RY
- 17.58
- JPM
- 14.03
- MUFG
- 13.71
- EWBC
- 12.25
- WFC
- 11.84
- BAC
- 11.79
- HSBC
- 11.38
P/S Ratio (TTM)
P/S ratio is not assessed for East West Bancorp (EWBC) in Banks: the revenue line is driven by spread economics rather than conventional product or service sales, so book value or earnings usually carry more weight.
P/B Ratio (MRQ)
East West Bancorp (EWBC) trades at 1.95 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
EWBC
Banks industry group
1.95
Group distribution
- Max
- 2.28
- EWBC
- 1.95
- Q3
- 1.58
- Median
- 1.32
- Q1
- 1.10
- Min
- 0.59
Largest peers
- HSBC
- 6.87
- RY
- 2.92
- JPM
- 2.53
- EWBC
- 1.95
- MUFG
- 1.64
- WFC
- 1.59
- BAC
- 1.26
Valuation Metrics
| Metric | Current stock: EWBC | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 12.25 | 11.81 |
| P/S Ratio (TTM) | -- | -- |
| P/B Ratio (MRQ) | 1.95 | 1.32 |
| Free Cash Flow Yield (TTM) | -- | -- |