📊 CPF Key Takeaways
Is Central Pacific Financial Corp. (CPF) a Good Investment?
Central Pacific Financial shows strong net income growth (45.1% YoY) and positive free cash flow, but is hampered by critically low returns (ROE 3.5%, ROA 0.3%), troubling interest coverage of 0.4x indicating operating income cannot service debt, and potential data quality issues in applying traditional metrics to banking sector financials.
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 positive momentum
- Conservative debt-to-equity ratio of 0.13x indicates disciplined leverage
- Positive free cash flow of $17.3M provides financial flexibility
- 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
- Interest coverage ratio of 0.4x is severely concerning—operating income cannot cover interest expenses, signaling debt servicing stress
- Extremely low return on equity (3.5%) and return on assets (0.3%) suggest inefficient capital deployment despite earnings growth
- Data quality concerns: traditional income statement metrics may not accurately reflect banking operations; revenue figure of $11.6M appears inconsistent with $7.5B asset base
- 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 trends and debt service capacity
- Return on equity trajectory toward industry benchmarks (typically 8-12% for healthy banks)
- Net interest margin and non-interest income composition
- 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 149.2% 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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $9.2M | $17.8M | $0.65 |
| 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 |
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 58% 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 positive momentum. Conservative debt-to-equity ratio of 0.13x indicates disciplined leverage. 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: Interest coverage ratio of 0.4x is severely concerning—operating income cannot cover interest expenses, signaling debt servicing stress. Extremely low return on equity (3.5%) and return on assets (0.3%) suggest inefficient capital deployment despite earnings growth. 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 $11.6M.
Does CPF pay dividends?
Central Pacific Financial Corp. pays dividends, with $7.6M 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 $0.78.
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 May 2026, Central Pacific Financial Corp. has a BUY rating with 58% 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 3.5% (sector avg: 12%), net margin of 179.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
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 $18.3M, with capital expenditures of $1.1M. FCF margin is 149.2%.
How does CPF compare to other Finance stocks?
Vs Finance sector averages: Net margin 179.1% (avg: 25%), ROE 3.5% (avg: 12%), current ratio N/A (avg: 1.2).