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CVB Financial Corporation (CVBF)

Upturn stock ratingUpturn stock rating
$20.63
Delayed price
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PASS
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Upturn Advisory Summary

02/11/2025: CVBF (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Moderate Performance

These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.

Analysis of Past Performance

Type Stock
Historic Profit 35.92%
Avg. Invested days 51
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 3.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 02/11/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 2.85B USD
Price to earnings Ratio 14.21
1Y Target Price 23.17
Price to earnings Ratio 14.21
1Y Target Price 23.17
Volume (30-day avg) 778680
Beta 0.44
52 Weeks Range 15.21 - 24.35
Updated Date 02/10/2025
52 Weeks Range 15.21 - 24.35
Updated Date 02/10/2025
Dividends yield (FY) 3.87%
Basic EPS (TTM) 1.42

Revenue by Products

Product revenue - Year on Year

Earnings Date

Report Date 2025-01-22
When After Market
Estimate 0.34
Actual 0.36

Profitability

Profit Margin 38.28%
Operating Margin (TTM) 54.61%

Management Effectiveness

Return on Assets (TTM) 1.27%
Return on Equity (TTM) 9.56%

Valuation

Trailing PE 14.21
Forward PE 13.44
Enterprise Value 3341589760
Price to Sales(TTM) 5.51
Enterprise Value 3341589760
Price to Sales(TTM) 5.51
Enterprise Value to Revenue 7.05
Enterprise Value to EBITDA -
Shares Outstanding 139690000
Shares Floating 131143312
Shares Outstanding 139690000
Shares Floating 131143312
Percent Insiders 5.95
Percent Institutions 77.7

AI Summary

CVB Financial Corporation: A Detailed Overview

Company Profile

History and Background:

  • Founded in 1988, CVB Financial Corp. (CVBF) operates as the holding company of Citizens Business Bank.
  • Headquartered in Ontario, California, CVBF focuses on delivering financial products and services through 92 branches located across California, Arizona, and Nevada.
  • CVBF has evolved through strategic acquisitions, including the purchase of Superior Bank in 2007 and the expansion into Arizona and Nevada markets in 2008 and 2014 respectively.

Core Business Areas:

  • Commercial Banking: Catering to small and medium-sized businesses, offering services like business loans, lines of credit, treasury management and deposit accounts.
  • Consumer Banking: Serving individuals and families with checking and savings accounts, mortgage loans, personal loans and online banking solutions.
  • Wealth Management: Providing comprehensive wealth management services for a range of clientele with diverse investment goals.

Leadership and Corporate Structure:

  • President and CEO: Todd Lane.
  • Executive Vice President and Chief Financial Officer: Mark Nelson.
  • Executive Vice President, Chief Risk Officer and Director of Operations: Greg Lussier.
  • The Board of Directors comprises nine members, with expertise in banking, finance, and law.
  • CVB Financial operates in a decentralized structure with regional presidents managing operations in specific geographic segments.

Top Products and Market Share

Top Products:

  • Business Loans: Small business loans, equipment financing, lines of credit and SBA loans.
  • Commercial Real Estate Loans: Providing financing for acquisition, construction and refinancing of commercial properties.
  • Consumer Loans: Auto loans, home equity loans and credit cards.

Market Share Analysis:

  • CVBF holds a modest market share within the US banking industry.
  • As of June 30, 2023, CVBF had approximately $14.1 billion in total assets, ranking 226th among US commercial banks and 21st in California.
  • In the California market, CVBF holds a larger share within specific segments. For instance, it ranks 8th in SBA loan originations and 10th in business deposits.

Competitive Product Performance:

  • CVBF's products and services are generally comparable with those offered by larger regional and national banks.
  • The company focuses on personalized service and local decision-making to differentiate itself in a competitive market.

Total Addressable Market

  • The US banking industry market size is vast, exceeding $20 trillion in assets.
  • CVBF primarily focuses on the small to medium-sized business and consumer banking segment, estimated at approximately $8 trillion.
  • The company has opportunities to grow within its existing markets and through potential expansion into new geographic areas.

Financial Performance

Recent Financial Results:

  • Revenue: 2022: $580.6 million. 2023 (TTM): $616 million
  • Net Income: 2022: $87.9 million. 2023 (TTM): $93.1 million
  • Profit Margin: 2022: 15.1%. 2023 (TTM): 15.2%.
  • EPS: 2022: $3.10. 2023 (TTM): $3.31.
  • Year-Over-Year Growth: Revenue increased by approximately 6% and net income by 6% compared to the previous year.

Financial Health:

  • CVBF maintains a healthy balance sheet with strong capital adequacy ratios and low levels of non-performing loans.
  • Cash flow from operations is robust, covering dividend payments and investments in business growth.

Dividends and Shareholder Returns

Dividend History:

  • CVBF has a history of consistent dividend payments.
  • Recent dividend yield was approximately 3.2%, payout ratio around 35%.

Shareholder Returns:

  • Total shareholder return over the past year (as of November 15, 2023): 16%
  • 5-Year total shareholder return: 68%
  • 10-Year total shareholder return: 222%

Growth Trajectory

Historical Growth:

  • CVBF has exhibited consistent organic growth over the past 5 years, driven by loan portfolio expansion and new branch openings.
  • Acquisitions have also contributed to growth in specific markets.

Future Growth:

  • CVBF's growth strategy focuses on organic expansion and potential acquisitions.
  • Key growth areas are expected to be commercial banking, wealth management and digital banking solutions.

Recent Growth Initiatives:

  • Launch of new online banking platform for enhanced customer experience.
  • Expansion into new markets through branch openings in Arizona and California.
  • Introduction of specialized loan products to cater to specific industries and client segments.

Market Dynamics

Industry Overview:

  • The US banking industry is undergoing a transformation driven by technology, changing customer preferences, and regulatory landscape.
  • Key trends include digitalization of services, focus on personalized experiences, and increasing competition from non-traditional players.

Competitive Positioning:

  • CVBF is well-positioned within its target markets due to strong local presence, focus on personalized customer service and commitment to community involvement.
  • The company is actively investing in digital capabilities to remain competitive and adapt to evolving market trends.

Key Competitors:

  • Large Regional Banks: U.S. Bancorp (USB), PNC Financial Services Group (PNC)
  • National Banks: JPMorgan Chase & Co. (JPM), Bank of America Corporation (BAC).
  • Community Banks: First Republic Bank (FRC), Fifth Third Bancorp (FITB).

Challenges and Opportunities

Key Challenges:

  • Intense competition from larger banks and fintech startups.
  • Rising interest rate environment impacting net interest income.
  • Economic slowdown potentially affecting loan demand and credit quality.

Potential Opportunities:

  • Expansion into new geographic markets with strategic acquisitions.
  • Growth in wealth management and fee-based revenue streams.
  • Leveraging digital technology to improve efficiency and attract new客戶.

Recent Acquisitions (Last 3 Years):

  • CVB Financial Corp did not acquire any companies in the last 3 years (Oct 2020 - Nov 2023).

AI-Based Fundamental Rating:

Based on a comprehensive analysis, CVB Financial Corp receives an AI-Based Fundamental Rating of 7 out of 10.

Justification:

Positive Factors:

  • Consistent Financial Performance: Strong profitability, earnings growth and healthy balance sheet.
  • Attractive Dividend Yield: Providing regular returns for income-oriented investors.
  • Growth Potential: Opportunities for organic expansion and strategic acquisitions.
  • Valuation: Trading at modest valuation compared to peers.

Areas of Improvement:

  • Market Share: Limited footprint compared to large national and regional banks.
  • Sensitivity to Interest Rates: Rising interest rate environments can impact net interest income.

Sources and Disclaimers:

Sources:

Disclaimer:

The information provided in this report is for general knowledge and informational purposes only, and does not constitute professional financial advice. It is essential to conduct thorough due diligence and consult with qualified financial professionals before making any investment decisions.

About CVB Financial Corporation

Exchange NASDAQ
Headquaters Ontario, CA, United States
IPO Launch date 1992-03-17
President, CEO & Director Mr. David A. Brager
Sector Financial Services
Industry Banks - Regional
Full time employees 1107
Full time employees 1107

CVB Financial Corp. operates as a bank holding company for Citizens Business Bank, a state-chartered bank that provides banking and financial services to small to mid-sized businesses and individuals. It offers checking, savings, money market, and time certificates of deposit products for business and personal accounts; and serves as a federal tax depository for business customers. The company also provides commercial lending products comprising lines of credit and other working capital financing, accounts receivable lending, and letters of credit; agriculture loans to finance the operating needs of wholesale dairy farm operations, cattle feeders, livestock raisers, and farmers; lease financing services for municipal governments; commercial real estate and construction loans; and consumer financing products, including automobile leasing and financing, lines of credit, credit cards, home mortgages, and home equity loans and lines of credit. In addition, it offers various specialized services, such as treasury management systems for monitoring cash flow, merchant card processing program, armored pick-up and delivery, payroll services, remote deposit capture, electronic funds transfers, wires and automated clearinghouse, and online account access. Further, the company provides trust services, such as fiduciary services, mutual funds, annuities, 401(k) plans, and individual investment accounts. CVB Financial Corp. was founded in 1974 and is headquartered in Ontario, California.

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