PacWest Bancorp [NASDAQ:PACW]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to PacWest Bancorp [PACW] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give PACW an Outperform rating. Its stock price has been found in the range of 31.16 to 55.86. This is compared to its latest closing price of $39.17.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for PacWest Bancorp [PACW] is sitting at 2.08. This is compared to 1 month ago, when its average rating was 2.08.
For the quarter ending in Dec-18 PacWest Bancorp [PACW] generated $0.3 billion in sales. That’s 0.25% lower than the average estimate of $0.3 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Yesterday ).
Fundamental Analysis of PacWest Bancorp [PACW]
Now let’s turn to look at profitability: with a current Operating Margin for PacWest Bancorp [PACW] sitting at +48.46, this company’s Net Margin is now 39.60%. These measurements indicate that PacWest Bancorp [PACW] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 10.11, and its Return on Invested Capital has reached 15.70%. Its Return on Equity is 9.39, and its Return on Assets is 1.81. These metrics suggest that this PacWest Bancorp does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, PacWest Bancorp [PACW] has generated a Total Debt to Total Equity ratio of 37.82. Similarly, its Total Debt to Total Capital is 27.44, while its Total Debt to Total Assets stands at 7.06. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 9.41, and its Long-Term Debt to Total Capital is 6.83. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 9.28. The Enterprise Value to Sales for this firm is now 4.91, and its Total Debt to Enterprise Value stands at 0.32. PacWest Bancorp [PACW] has a Price to Book Ratio of 0.84, a Price to Cash Flow Ratio of 6.77 and P/E Ratio of 10.64. These metrics all suggest that PacWest Bancorp is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, PacWest Bancorp [PACW] earns $714,678 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.05.
PacWest Bancorp [PACW] has 120.48M shares outstanding, amounting to a total market cap of $4.77B. Its stock price has been found in the range of 31.16 to 55.86. At its current price, it has moved by -29.09% from its 52-week high, and it has moved 27.12% from its 52-week low.
This stock’s Beta value is currently 1.51, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 52.68. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is PacWest Bancorp [PACW] a Reliable Buy?
Shares of PacWest Bancorp [PACW], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.