IMPORTANT DISCLAIMER: Blank Capital Research ("BCR") is a technology platform, not a registered investment advisor or broker-dealer. The algorithmically generated signals, scores, and rankings provided on this site ("God Mode" Signals) are for informational and research purposes only and do not constitute financial advice, investment recommendations, or an offer to sell or solicit an offer to buy any securities.
HYPOTHETICAL PERFORMANCE RESULTS: The "timing scores" and "regime signals" displayed are based on quantitative models. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity.
RISK OF LOSS: Trading in financial markets involves a high degree of risk and may result in the loss of your entire investment. Data provided by third-party sources (Intrinio, Snowflake) is believed to be reliable but is not guaranteed for accuracy or completeness. Past performance is not indicative of future results.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 59.9GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
11.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
3.53%
Trailing Yield
$3.53
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
46%SAFE
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, CENTRAL PACIFIC FINANCIAL CORP (CPF) receives a "Hold" rating with a composite score of 54.3/100, ranked #876 out of 4446 stocks. Key factor scores: Quality 60/100, Value 73/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
CENTRAL PACIFIC FINANCIAL CORP (CPF) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does CENTRAL PACIFIC FINANCIAL CORP Do?
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. CENTRAL PACIFIC FINANCIAL CORP (CPF) is classified as a small-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Paul K. Yonamine and employs approximately 780 people, headquartered in Graham, Hawaii. With a market capitalization of $853M, CPF is one of the notable companies in the Financials sector.
CENTRAL PACIFIC FINANCIAL CORP (CPF) Stock Rating — Hold (April 2026)
As of April 2026, CENTRAL PACIFIC FINANCIAL CORP receives a Hold rating with a composite score of 54.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.CPF ranks #876 out of 4,446 stocks in our coverage universe. Within the Financials sector, CENTRAL PACIFIC FINANCIAL CORP ranks #269 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
CPF Stock Price and 52-Week Range
CENTRAL PACIFIC FINANCIAL CORP (CPF) currently trades at $33.62. The stock lost $0.30 (0.9%) in the most recent trading session. The 52-week high for CPF is $35.01, which means the stock is currently trading -4.0% from its annual peak. The 52-week low is $23.16, putting the stock 45.2% above its annual trough. Recent trading volume was 116K shares, suggesting relatively thin trading activity.
Is CPF Overvalued or Undervalued? — Valuation Analysis
CENTRAL PACIFIC FINANCIAL CORP (CPF) carries a value factor score of 73/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 12.96x, compared to the Financials sector average of 14.88x — a discount of 13%. The price-to-book ratio stands at 1.49x, versus the sector average of 1.22x. The price-to-sales ratio is 7.88x, compared to 0.90x for the average Financials stock. On an enterprise value basis, CPF trades at 10.78x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, CENTRAL PACIFIC FINANCIAL CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
CENTRAL PACIFIC FINANCIAL CORP Profitability — ROE, Margins, and Quality Score
CENTRAL PACIFIC FINANCIAL CORP (CPF) earns a quality factor score of 60/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 11.5%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 0.9% versus the sector average of 1.2%.
On a margin basis, CENTRAL PACIFIC FINANCIAL CORP reports gross margins of 81.9%. The operating margin is 173.6% (sector: 21.8%). Net profit margin stands at 107.4%, versus 17.7% for the average Financials stock. Revenue growth is running at 517.2% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
CPF Debt, Balance Sheet, and Financial Health
CENTRAL PACIFIC FINANCIAL CORP has a debt-to-equity ratio of 13.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 1.09x, suggesting adequate working capital coverage. Total debt on the balance sheet is $77M. Cash and equivalents stand at $103M.
CPF has a beta of 0.71, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for CENTRAL PACIFIC FINANCIAL CORP is 84/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
CENTRAL PACIFIC FINANCIAL CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, CENTRAL PACIFIC FINANCIAL CORP reported revenue of $112M and earnings per share (EPS) of $2.88. Net income for the quarter was $68M. Gross margin was 81.9%. Operating income came in at $77M.
In FY 2025, CENTRAL PACIFIC FINANCIAL CORP reported revenue of $52M and earnings per share (EPS) of $2.88. Net income for the quarter was $77M. Revenue grew 33.8% year-over-year compared to FY 2024. Operating income came in at $98M.
In Q3 2025, CENTRAL PACIFIC FINANCIAL CORP reported revenue of $75M and earnings per share (EPS) of $0.69. Net income for the quarter was $19M. Gross margin was 81.9%. Revenue grew 487.5% year-over-year compared to Q3 2024. Operating income came in at $14M.
In Q2 2025, CENTRAL PACIFIC FINANCIAL CORP reported revenue of $13M and earnings per share (EPS) of $0.68. Net income for the quarter was $18M. Revenue grew 7.4% year-over-year compared to Q2 2024. Operating income came in at $24M.
Over the past 8 quarters, CENTRAL PACIFIC FINANCIAL CORP has demonstrated a growth trajectory, with revenue expanding from $12M to $112M. Investors analyzing CPF stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
CPF Dividend Yield and Income Analysis
CENTRAL PACIFIC FINANCIAL CORP (CPF) currently pays a dividend yield of 3.5%. At this yield, a $10,000 investment in CPF stock would generate approximately $$353.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning CPF offers above-average income for its sector. With a net margin of 107.4%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
CPF Momentum and Technical Analysis Profile
CENTRAL PACIFIC FINANCIAL CORP (CPF) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 20/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
CPF vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing CPF against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full CPF vs S&P 500 (SPY) comparison to assess how CENTRAL PACIFIC FINANCIAL CORP stacks up against the broader market across all factor dimensions.
CPF Next Earnings Date
No upcoming earnings date has been announced for CENTRAL PACIFIC FINANCIAL CORP (CPF) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy CPF? — Investment Thesis Summary
CENTRAL PACIFIC FINANCIAL CORP presents a balanced picture with arguments on both sides. The quality score of 60/100 indicates above-average profitability and business fundamentals. The value score of 73/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 84/100) reduces downside risk.
In summary, CENTRAL PACIFIC FINANCIAL CORP (CPF) earns a Hold rating with a composite score of 54.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on CPF stock.
We'll email you when stocks you follow change their composite rating.
Institutional Research Dossier
CENTRAL PACIFIC FINANCIAL CORP (CPF) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Central Pacific Financial Corp (CPF) receives a Hold rating, driven by a mixed assessment of its financial performance and strategic positioning. While the company exhibits strong profitability metrics and trades at attractive valuation multiples compared to its sector, concerns arise from its volatile revenue growth and relatively weak investment score, suggesting potential challenges in future expansion and capital allocation. The Hold rating reflects a balanced view, acknowledging CPF's current strengths while remaining cautious about its long-term growth prospects and operational consistency.
The most critical takeaway is the need for CPF to demonstrate sustainable revenue growth and improved capital allocation strategies to justify a more bullish outlook. The company's impressive profitability metrics, particularly its operating and net margins, are noteworthy, but these need to be supported by consistent revenue generation and efficient deployment of capital to enhance shareholder value. Investors should closely monitor CPF's ability to maintain its profitability while navigating the competitive landscape of the Hawaiian banking sector.
Business Strategy & Overview
Central Pacific Financial Corp. operates primarily through its subsidiary, Central Pacific Bank, providing a range of commercial banking products and services to businesses, professionals, and individuals in Hawaii. The bank's core business revolves around deposit-taking and lending activities, offering various deposit accounts, commercial loans, mortgages, and consumer loans. A significant portion of its revenue is derived from interest income on loans and investments, as well as fees generated from banking services. The company also provides wealth management services, including investment products, annuities, and insurance, further diversifying its revenue streams.
CPF's strategic positioning is heavily focused on the Hawaiian market, where it operates a network of branches and ATMs. This geographic concentration allows the bank to develop strong relationships with local businesses and customers, fostering a sense of community banking. The company's strategy also includes leveraging digital banking services to enhance customer convenience and expand its reach beyond physical branches. This digital transformation is crucial for attracting and retaining customers in an increasingly competitive banking environment.
The company's product pipeline appears to be centered on enhancing existing services and expanding its digital offerings. While specific details on new product development are limited, CPF likely focuses on tailoring its products to meet the unique needs of the Hawaiian market. This includes offering specialized loan products for local businesses and developing digital platforms that cater to the preferences of its customer base. The bank's ability to innovate and adapt to changing customer demands will be critical for maintaining its competitive edge.
In the broader industry context, CPF operates in a highly regulated and competitive banking sector. The company faces competition from larger national banks, regional players, and credit unions. To differentiate itself, CPF emphasizes its local presence, personalized service, and community involvement. The bank's success depends on its ability to maintain strong customer relationships, manage credit risk effectively, and navigate the evolving regulatory landscape. The Hawaiian economy, with its unique characteristics and reliance on tourism, also plays a significant role in CPF's business performance.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
517.2%
Sector: 9.4%
+5414% VS SCTR
Economic Moat Analysis
Central Pacific Financial Corp. likely possesses a narrow economic moat, primarily derived from its established brand and local market presence within the Hawaiian banking sector. While not insurmountable, this moat provides some degree of competitive advantage, making it moderately difficult for new entrants or larger national banks to immediately displace CPF's position. The company's long-standing history and deep roots in the community contribute to customer loyalty and brand recognition, which are valuable intangible assets.
The Hawaiian banking market, while not entirely isolated, exhibits characteristics that favor local players like CPF. The unique cultural and economic dynamics of the islands create a preference for banks that understand and cater to the specific needs of the local population. This local expertise and community focus act as a barrier to entry for larger, less specialized competitors. CPF's extensive branch network and ATM coverage within Hawaii further solidify its presence and provide convenience for its customers.
Switching costs, while not exceptionally high, also contribute to CPF's narrow moat. Customers who have established banking relationships, direct deposits, and loan agreements may be hesitant to switch to a new bank due to the perceived hassle and potential disruption. This inertia provides CPF with some degree of customer retention, even if competitors offer slightly better rates or services. The company's focus on personalized service and relationship banking further strengthens these switching costs.
However, it's important to acknowledge the limitations of CPF's moat. The banking industry is becoming increasingly commoditized, with online and mobile banking reducing the importance of physical branches. Larger national banks have the resources to invest heavily in technology and offer a wider range of products and services. Additionally, the rise of fintech companies and alternative lending platforms poses a threat to traditional banks like CPF. Therefore, while CPF's local presence and brand recognition provide some competitive advantage, it is not a wide or impenetrable moat.
The company's ability to maintain and widen its moat depends on its ability to adapt to changing customer preferences, invest in technology, and continue to provide personalized service. If CPF fails to innovate and differentiate itself, its narrow moat could erode over time, making it more vulnerable to competition. The company's investment score of 20/100 suggests potential weaknesses in its capital allocation strategies, which could hinder its ability to strengthen its competitive position.
Financial Health & Profitability
Central Pacific Financial Corp. exhibits a mixed financial profile. The company's revenue growth has been highly volatile, with a significant increase of 517.2% compared to the sector average of 9.3%. However, this growth appears to be anomalous and potentially unsustainable, given the historical quarterly revenue figures. The substantial increase in revenue in FY2025 compared to previous years warrants further investigation to determine its source and sustainability.
Profitability metrics are exceptionally strong, with a gross margin of 81.9%, an operating margin of 173.6%, and a net margin of 107.4%, all significantly exceeding the sector averages. These high margins suggest efficient cost management and a favorable business model. However, the sustainability of these margins should be closely monitored, as they may be influenced by temporary factors or accounting adjustments.
The company's return on equity (ROE) of 11.5% is also higher than the sector average of 8.5%, indicating efficient use of shareholder equity. The debt-to-equity ratio of 13.00 is significantly lower than the sector average of 115.00, suggesting a conservative capital structure and low financial leverage. This low leverage provides CPF with financial flexibility and reduces its vulnerability to interest rate fluctuations.
The current ratio of 1.09 indicates adequate liquidity to meet short-term obligations. However, the negative free cash flow of $-1.01 million raises concerns about the company's ability to generate cash from its operations. This negative free cash flow could be due to various factors, such as increased capital expenditures or changes in working capital. Further analysis is needed to understand the underlying drivers of the negative free cash flow and its potential impact on the company's financial health.
Analyzing the quarterly financial history reveals significant fluctuations in revenue and net income. While the company has consistently generated positive net income, the revenue figures have been erratic. This volatility raises questions about the consistency and predictability of CPF's financial performance. Investors should closely monitor the company's ability to stabilize its revenue growth and maintain its profitability in the long term.
Valuation Assessment
Central Pacific Financial Corp. appears attractively valued based on several key metrics. The company's price-to-earnings (P/E) ratio of 10.6x is significantly lower than the sector average of 15.5x, suggesting that the stock is undervalued relative to its earnings. Similarly, the enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.2x is also lower than the sector average of 3.5x, further indicating undervaluation.
These low valuation multiples may reflect investor concerns about the company's volatile revenue growth and negative free cash flow. However, they also present an opportunity for value investors who believe that CPF's strong profitability and conservative capital structure are not fully reflected in its current stock price. The company's high operating and net margins, coupled with its low debt-to-equity ratio, suggest that it is a well-managed and financially sound institution.
However, the negative free cash flow is a cause for concern and warrants further investigation. If the negative free cash flow is a temporary issue, the stock may be significantly undervalued. However, if it is a persistent problem, it could limit the company's ability to invest in growth opportunities and return capital to shareholders. Investors should carefully analyze the underlying drivers of the negative free cash flow and assess its potential impact on the company's long-term valuation.
The company's historical valuation trends are difficult to assess without more detailed data. However, the current valuation multiples suggest that the stock is trading at a discount to its peers and its own historical averages. This discount may be justified by the company's volatile revenue growth and negative free cash flow. However, if the company can stabilize its revenue growth and improve its cash flow generation, the stock could experience significant upside potential.
Overall, CPF's valuation appears to be a mixed bag. While the company trades at attractive multiples compared to its sector, the volatile revenue growth and negative free cash flow raise concerns about its long-term prospects. Investors should carefully weigh these factors before making an investment decision. The Hold rating reflects this balanced view, acknowledging the company's potential upside while remaining cautious about its risks.
Risk & Uncertainty
Central Pacific Financial Corp. faces several specific risks that could impact its business and financial performance. One of the primary risks is its geographic concentration in the Hawaiian market. The Hawaiian economy is heavily reliant on tourism, which is susceptible to economic downturns, natural disasters, and global events. A decline in tourism could significantly impact CPF's loan portfolio and overall profitability.
Competition from larger national banks and credit unions also poses a significant risk. These competitors have greater resources and a wider range of products and services, which could attract customers away from CPF. The rise of fintech companies and alternative lending platforms further intensifies the competitive landscape. CPF must continuously innovate and adapt to maintain its competitive edge.
Interest rate risk is another important consideration. Changes in interest rates could impact CPF's net interest margin and the value of its investment portfolio. A rising interest rate environment could increase the cost of funding and reduce demand for loans. CPF must effectively manage its interest rate risk to protect its profitability.
Credit risk is inherent in the banking business. CPF's loan portfolio is exposed to the risk of borrowers defaulting on their loans. Economic downturns, industry-specific challenges, and individual borrower circumstances could all contribute to increased credit losses. CPF must maintain strong credit underwriting standards and effective risk management practices to mitigate credit risk.
Regulatory risk is also a factor. The banking industry is subject to extensive regulation, and changes in regulations could impact CPF's business operations and compliance costs. CPF must stay abreast of regulatory developments and ensure compliance with all applicable laws and regulations. Failure to comply with regulations could result in fines, penalties, and reputational damage.
Bulls Say / Bears Say
The Bull Case
BULL VIEWCPF's exceptionally high operating and net margins, significantly exceeding sector averages, demonstrate superior efficiency and profitability, suggesting a strong competitive advantage.
BULL VIEWThe company's low debt-to-equity ratio provides financial flexibility and reduces vulnerability to interest rate fluctuations, positioning it well for future growth and stability.
BULL VIEWCPF's attractive valuation multiples, including a P/E ratio significantly below the sector average, offer a compelling entry point for value investors seeking undervalued opportunities.
The Bear Case
BEAR VIEWCPF's volatile revenue growth and negative free cash flow raise concerns about its long-term sustainability and ability to generate consistent returns for shareholders.
BEAR VIEWThe company's geographic concentration in the Hawaiian market exposes it to significant economic risks, particularly related to tourism and natural disasters.
BEAR VIEWIncreased competition from larger national banks and fintech companies could erode CPF's market share and profitability, limiting its growth potential.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score CPF and 4,400+ other equities.
CENTRAL PACIFIC FINANCIAL CORP exhibits a 254% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
0.9%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
81.9%
Sector: 0.0%
Operating Margin
Core business profitability
173.6%
Sector: 21.8%
Net Margin
Bottom-line profitability
107.4%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+42%
Income Projection audit
A $10,000 investment would generate approximately $353 annually in dividends at the current trailing rate.
