Net Margin - CVB Financial Corp (NASDAQ:CVBF)

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Price: 19.92 USD -1.53%

Market Cap: 2.7B USD

40.2%

Current

41%

Average

23.6%

Industry

Net Margin measures how much net income is generated as a percentage of revenues received. It helps investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Net Margin

40.2%

Net Income

203.2m

Revenue

505.1m

Net Margin Across Competitors

Country	Company	Market Cap	Net Margin
US	CVB Financial Corp NASDAQ:CVBF	2.7B USD	40%
US	PNC Financial Services Group Inc NYSE:PNC	82.6B USD	27%
US	Truist Financial Corp NYSE:TFC	63.8B USD	24%
US	Fifth Third Bancorp NASDAQ:FITB	31.8B USD	25%
US	M&T Bank Corp NYSE:MTB	31.5B USD	27%
CN	Bank of Jiangsu Co Ltd SSE:600919	190.7B CNY	36%
US	First Citizens BancShares Inc (Delaware) NASDAQ:FCNCA	25.9B USD	24%
US	Huntington Bancshares Inc NASDAQ:HBAN	26B USD	27%
CN	Bank of Ningbo Co Ltd SZSE:002142	183.1B CNY	36%
US	Citizens Financial Group Inc NYSE:CFG	25.2B USD	19%
US	Regions Financial Corp NYSE:RF	24.4B USD	28%

CVB Financial Corp
Glance View

Market Cap

2.7B USD

Industry

Banking

In the flourishing landscape of regional banking, CVB Financial Corp. stands as a testament to the steady growth and resilience characteristic of community-focused financial institutions. Founded in 1974, CVB Financial Corp. operates as the holding company for Citizens Business Bank, one of the largest banks headquartered in California. With a strategic focus on the bustling economies of California’s Inland Empire, Los Angeles County, and the Central Valley, the bank has crafted a unique niche by extending its financial services primarily to small and medium-sized businesses, as well as professional practices and individuals. Through its portfolio of financial solutions, Citizens Business Bank offers a robust suite that includes commercial, real estate, and construction loans, alongside traditional deposit products. The bank's emphasis on local market expertise and relationship-driven banking sets it apart in a crowded financial services market, allowing it to cultivate lasting bonds across diverse communities. At the core of CVB Financial Corp.'s business model lies a commitment to stability and prudent financial management. The bank generates revenue primarily through the net interest margin—the differential between interest income earned on loans and securities and the interest paid on deposits and borrowings. By maintaining a strong foothold in commercial banking, the bank leverages its expertise to cater to the financial needs of its business clientele, thus ensuring a steady stream of income even amid economic fluctuations. Moreover, Citizens Business Bank's strategy includes conservative underwriting standards and a disciplined approach to managing credit risk, which have contributed to its solid financial performance over the years. With a clear focus on efficiency and a deep understanding of the markets it serves, CVB Financial Corp. continues to solidify its position as a resilient and reliable player in the regional banking sector.

View CVBF Analysis

CVBF Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

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CVB Financial Corp
NASDAQ:CVBF