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Commencement Bank
(OTC:CBWA)
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Rating:72Outperform
Price Target:
$21.50
▲(14.97% Upside)
Action:Upgraded
Date:08/06/26
CBWA scores well primarily due to improving revenue and profitability paired with a conservatively levered balance sheet, supported by a reasonable P/E valuation. The biggest risk factor is the sharp deterioration in 2025 cash generation versus net income, and technicals show strong momentum but overbought conditions that could drive short-term volatility.
Positive Factors
Revenue growth and margin recovery
Sustained revenue acceleration (improving to ~12.1% in 2025) and a meaningful net income rebound underpin more resilient core earnings. Stronger margins and rising ROE provide durable earnings power that supports lending capacity and retained earnings over the next several quarters.
Negative Factors
Weak cash conversion in 2025
Sharp decline in operating and free cash flow despite higher net income indicates deteriorating cash conversion, raising concerns about earnings quality. If persistent, weaker cash generation can constrain loan funding, dividend capacity, and capital investments over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and margin recovery
Sustained revenue acceleration (improving to ~12.1% in 2025) and a meaningful net income rebound underpin more resilient core earnings. Stronger margins and rising ROE provide durable earnings power that supports lending capacity and retained earnings over the next several quarters.
Read all positive factors
Commencement Bank (CBWA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.89M
Dividend YieldN/A
Average Volume (3M)1.40K
Price to Earnings (P/E)9.7
Beta (1Y)0.10
Revenue Growth17.65%
EPS Growth73.47%
CountryUS
Employees80
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.98
Shares Outstanding4,150,183
10 Day Avg. Volume564
30 Day Avg. Volume1,404
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)1.03
Price to Sales (P/S)1.69
P/FCF Ratio203.37
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Commencement Bank Business Overview & Revenue Model
Company Description
Commencement Bancorp Inc. functions as the parent entity for Commencement Bank, delivering a comprehensive array of financial products and services. These offerings are designed for individual customers, as well as small and medium-sized enterpris...
How the Company Makes Money
CBWA’s earnings were primarily driven by traditional bank revenue sources. The core source is net interest income: the bank earned interest and fees on loans (e.g., commercial and industrial loans and commercial real estate loans) and on its inves...
Commencement Bank Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 38.49M | 36.68M | 30.41M | 27.73M | 21.35M | 20.12M |
| Gross Profit | 28.56M | 26.54M | 20.53M | 19.60M | 19.65M | 16.29M |
| EBITDA | 9.06M | 8.35M | 3.63M | 4.56M | 7.62M | 6.20M |
| Net Income | 7.38M | 6.71M | 3.01M | 3.05M | 5.49M | 4.19M |
Balance Sheet | ||||||
| Total Assets | 739.84M | 683.25M | 650.00M | 586.19M | 580.76M | 531.44M |
| Cash, Cash Equivalents and Short-Term Investments | 9.79M | 21.64M | 142.08M | 114.15M | 123.55M | 118.96M |
| Total Debt | 5.00M | 8.00M | 2.25M | 2.56M | 26.85M | 4.60M |
| Total Liabilities | 676.92M | 623.05M | 598.57M | 536.08M | 534.11M | 477.82M |
| Stockholders Equity | 62.92M | 60.20M | 51.42M | 50.11M | 46.66M | 53.62M |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | 305.00K | 3.45M | 3.73M | 3.19M | 7.61M |
| Operating Cash Flow | 0.00 | 1.73M | 4.78M | 3.98M | 3.27M | 7.66M |
| Investing Cash Flow | 0.00 | -50.86M | -13.18M | -2.23M | -106.71M | 12.08M |
| Financing Cash Flow | 0.00 | 16.88M | 58.21M | 1.77M | 55.79M | 928.00K |
Commencement Bank Technical Analysis
Positive
18.70
Price Trends
18.46
Positive
17.63
Positive
17.04
Positive
Market Momentum
0.20
Positive
65.61
Neutral
47.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CBWA, the sentiment is Positive. The current price of 18.7 is below the 20-day moving average (MA) of 19.21, above the 50-day MA of 18.46, and above the 200-day MA of 17.04, indicating a bullish trend. The MACD of 0.20 indicates Positive momentum. The RSI at 65.61 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CBWA.
Commencement Bank Peers Comparison
UnderperformOutperform
Sector (68)
CBWA
Commencement Bank
19.23
7.06
57.97%
ASRV
Ameriserv Financial
4.85
1.97
68.29%
FSEA
First Seacoast Bancorp
17.12
5.62
48.87%
CLST
Catalyst Bancorp
17.39
4.56
35.54%
NSTS
NSTS Bancorp
14.03
2.13
17.86%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.