📊 CPF Key Takeaways
Is Central Pacific Financial Corp. (CPF) a Good Investment?
Central Pacific Financial demonstrates strong earnings growth (+45.1% YoY) and excellent free cash flow generation ($92.3M), supported by robust operating margins. However, the deteriorating interest coverage ratio (1.4x) and tight liquidity position raise concerns about debt servicing capacity and financial resilience.
Central Pacific Financial shows solid fundamental momentum, with revenue up 37.8%, net income up 45.1%, and diluted EPS up 45.2% year over year. Profitability appears healthy for a regional bank, supported by 13.1% ROE, 1.0% ROA, strong operating cash flow, and low balance-sheet leverage, although some reported margin figures suggest accounting presentation effects that should be monitored for sustainability.
Why Buy Central Pacific Financial Corp. Stock? CPF Key Strengths
- Strong net income growth of 45.1% year-over-year with EPS growth matching at 45.2%
- Excellent free cash flow of $92.3M with FCF margin of 178.1%, indicating strong cash generation relative to revenue
- Conservative leverage with debt-to-equity ratio of 0.13x, providing financial flexibility
- Substantial asset base of $7.4B providing scale and diversification in banking operations
- Strong year-over-year growth in revenue, net income, and EPS indicates improving earnings power
- Healthy profitability profile with 13.1% ROE and 1.0% ROA for a bank of this size
- Conservative leverage with 0.13x debt-to-equity and positive free cash flow generation
CPF Stock Risks: Central Pacific Financial Corp. Investment Risks
- Dangerously low interest coverage ratio of 1.4x indicates limited ability to service debt from operating income; any revenue decline poses financial stress
- Exceptional operating margin of 189.7% and net margin of 149.5% appear unsustainable and may not reflect normalized banking operations
- Minimal profitability by assets (1.0% ROA) suggests inefficient deployment of the large $7.4B asset base despite strong net income
- High leverage of liabilities at 6.8B against equity of only 592.6M (11.5x asset leverage) indicates significant financial risk typical of banks but limits margin for error
- Interest coverage of 1.4x is relatively thin and leaves less room if funding costs rise
- Operating and net margins above 100% suggest bank-specific accounting or noncore items, which may reduce comparability and earnings quality
- As a state commercial bank, results remain exposed to credit quality deterioration and net interest margin pressure
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of debt servicing ability; must improve above 2.0x
- Net interest margin and loan loss provisions - core drivers of banking profitability sustainability
- Return on assets trajectory - needs improvement to justify the large asset base
- Revenue quality and composition - distinguish between sustainable vs. one-time gains driving the 37.8% revenue growth
- Net interest margin and funding costs
- Credit quality metrics including nonperforming assets and charge-offs
Central Pacific Financial Corp. (CPF) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 178.1% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
CPF Profit Margin, ROE & Profitability Analysis
CPF vs Finance Sector: How Central Pacific Financial Corp. Compares
How Central Pacific Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Central Pacific Financial Corp. Stock Overvalued? CPF Valuation Analysis 2026
Based on fundamental analysis, Central Pacific Financial Corp. appears fundamentally strong relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Central Pacific Financial Corp. Balance Sheet: CPF Debt, Cash & Liquidity
CPF Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Central Pacific Financial Corp.'s revenue has grown significantly by 31% over the 5-year period, indicating strong business expansion. The most recent EPS of $2.17 reflects profitable operations.
CPF Revenue Growth, EPS Growth & YoY Performance
CPF Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $9.2M | $12.9M | $0.49 |
| Q2 2025 | $9.1M | $12.9M | $0.58 |
| Q1 2025 | $8.3M | $12.9M | $0.48 |
| Q3 2024 | $8.5M | $12.9M | $0.49 |
| Q2 2024 | $7.8M | $12.9M | $0.53 |
| Q1 2024 | $8.0M | $12.9M | $0.48 |
| Q3 2023 | $7.8M | $13.1M | $0.49 |
| Q2 2023 | $7.8M | $14.5M | $0.53 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Central Pacific Financial Corp. Dividends, Buybacks & Capital Allocation
CPF SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Central Pacific Financial Corp. (CIK: 0000701347)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CPF
What is the AI rating for CPF?
Central Pacific Financial Corp. (CPF) has a Combined AI Rating of BUY from Claude (HOLD) and ChatGPT (BUY) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPF's key strengths?
Claude: Strong net income growth of 45.1% year-over-year with EPS growth matching at 45.2%. Excellent free cash flow of $92.3M with FCF margin of 178.1%, indicating strong cash generation relative to revenue. ChatGPT: Strong year-over-year growth in revenue, net income, and EPS indicates improving earnings power. Healthy profitability profile with 13.1% ROE and 1.0% ROA for a bank of this size.
What are the risks of investing in CPF?
Claude: Dangerously low interest coverage ratio of 1.4x indicates limited ability to service debt from operating income; any revenue decline poses financial stress. Exceptional operating margin of 189.7% and net margin of 149.5% appear unsustainable and may not reflect normalized banking operations. ChatGPT: Interest coverage of 1.4x is relatively thin and leaves less room if funding costs rise. Operating and net margins above 100% suggest bank-specific accounting or noncore items, which may reduce comparability and earnings quality.
What is CPF's revenue and growth?
Central Pacific Financial Corp. reported revenue of $51.8M.
Does CPF pay dividends?
Central Pacific Financial Corp. pays dividends, with $29.4M distributed to shareholders in the trailing twelve months.
Where can I find CPF SEC filings?
Official SEC filings for Central Pacific Financial Corp. (CIK: 0000701347) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CPF's EPS?
Central Pacific Financial Corp. has a diluted EPS of $2.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CPF a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Central Pacific Financial Corp. has a BUY rating with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CPF stock overvalued or undervalued?
Valuation metrics for CPF: ROE of 13.1% (sector avg: 12%), net margin of 149.5% (sector avg: 25%). Higher ROE suggests strong returns relative to peers.
Should I buy CPF stock in 2026?
Our dual AI analysis gives Central Pacific Financial Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CPF's free cash flow?
Central Pacific Financial Corp.'s operating cash flow is $97.5M, with capital expenditures of $5.2M. FCF margin is 178.1%.
How does CPF compare to other Finance stocks?
Vs Finance sector averages: Net margin 149.5% (avg: 25%), ROE 13.1% (avg: 12%), current ratio N/A (avg: 1.2).