📊 CPF Key Takeaways
Investment Thesis
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.
CPF 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
CPF 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
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
CPF Financial Metrics
💡 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 Profitability Ratios
CPF vs Finance Sector
How CENTRAL PACIFIC FINANCIAL CORP compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CPF Balance Sheet & Liquidity
CPF 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 Growth Metrics (YoY)
CPF Quarterly 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.
CPF Capital Allocation
CPF SEC Filings
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 an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CPF's 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.
What are the risks of investing in CPF?
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.
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?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.