Central Pacific Financial Corp.
$33.82
-2.2%Central Pacific Financial Corp. operates as the holding company for Central Pacific Bank that provides commercial banking products and services to businesses, professionals, and individuals in the United States. It offers various deposit products and services, including personal and business checking and savings accounts, money market accounts, and time certificates of deposit. The company's lending activities comprise commercial loans, financial and agricultural loans, commercial and residential mortgages, and construction loans to small and medium-sized companies, business professionals, and real estate investors and developers, as well as home equity, and consumer loans to local homebuyers and individuals. It also provides debit cards, internet and mobile banking, cash management, full-service ATMs, digital banking services, traveler's checks, safe deposit boxes, international banking services, night depository facilities, foreign exchange and wire transfers, trust services, and retail brokerage services. In addition, the company offers wealth management products and services, including non-deposit investment products, annuities, insurance, investment management, asset custody, and general consultation and planning services. As of December 31, 2021, it operated 30 branches and 69 automated teller machines in the state of Hawaii. The company was incorporated in 1954 and is headquartered in Honolulu, Hawaii.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is compressed (P/E 11.7).
Valuation inputs: P/E 11.7, earnings yield +8.5%, momentum -2.2%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is acceptable (ROE +13.1%, ROIC +10.0%).
Profitability stack: net margin +21.4%, ROE +13.1%, ROIC +10.0%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceRisk profile is balanced but has notable pressure points to monitor.
Risk factors: liabilities/assets +92.0%, momentum -2.2%, net margin +21.4%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Central Pacific Financial Corp. Market vs Earnings Trajectory
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Central Pacific Financial Corp. Fair Value Envelope
Central Pacific Financial Corp. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Outstanding operational efficiency. The company generates substantial profit from core operations.
Net Profit Margin
Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Exceptional profitability across all levels: Strong pricing power, efficient operations, and healthy bottom line indicate a high-quality business with sustainable competitive advantages.
Central Pacific Financial Corp. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Steady FCF growth indicates consistent cash generation improvement. On a positive trajectory.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.
Central Pacific Financial Corp. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Debt-to-Equity Ratio
High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Capital-intensive business with significant long-term investments in property, equipment, or intangibles.
Financial Health Insight
Financial stress indicators: Both liquidity and leverage metrics raise concerns. The company may face challenges meeting obligations and should focus on strengthening its balance sheet.
Central Pacific Financial Corp. Street Expectations Map
Wall Street analysts project that CPF stock may decline over the coming 12 months. The consensus 1-year price target stands at 28.00, with estimates ranging from a low of 26.00 to a high of 30.00.
The consensus 1-year price target stands at 28.00, with estimates ranging from a low of 26.00 to a high of 30.00.
Analyst Consensus Analysis
Upside Potential
Significant downside risk. Stock trading well above analyst consensus suggests elevated valuation concerns and potential correction.
Analyst Agreement
High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.
Risk-Reward Profile
Unfavorable risk-reward. Downside risk exceeds upside potential. Consider defensive positioning or alternative opportunities.
Analyst Conviction
Bearish or uncertain outlook. Limited upside or poor consensus suggests challenges ahead or fundamental concerns.
Market Sentiment Insight
Consensus overvaluation: Analysts agree the stock is richly valued with limited upside. Consider booking profits or defensive positioning unless you have contrarian conviction in unrecognized catalysts.
Central Pacific Financial Corp. Insider Positioning
During the last 12 months, insiders have sold $632K worth of CPF shares, with no buying activity reported.
3 Months
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0
0.00
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3-6 Months
0
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0
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6-9 Months
0
0.00
3.3K
102.18K
-102K
-$102K
9-12 Months
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0.00
19.2K
529.33K
-529K
-$529K
Top Buyers
No buying activity
Top Sellers
Ngo Agnes Catherine
Director
$382K
Yonamine Paul K
Director
$223K
Kosasa Paul
Director
$26K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $632K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Insider Participation
3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
cpf Dividend History
Learning Layer
Related Guides
Build conviction on CPF by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.