Since February 2025, CVB Financial has been in a holding pattern, posting a small loss of 3.8% while floating around $19.66. The stock also fell short of the S&P 500’s 5.5% gain during that period.

Is now the time to buy CVB Financial, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free.

Why Is CVB Financial Not Exciting?

We're sitting this one out for now. Here are three reasons why you should be careful with CVBF and a stock we'd rather own.

1. Net Interest Income Points to Soft Demand

Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.

CVB Financial’s net interest income has grown at a 1.4% annualized rate over the last five years, much worse than the broader banking industry and in line with its total revenue. Its growth was driven by an increase in its outstanding loans as its net interest margin, which represents how much a bank earns in relation to its outstanding loan book, was flat throughout that period.

2. EPS Barely Growing

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

CVB Financial’s unimpressive 2.1% annual EPS growth over the last five years aligns with its revenue performance. On the bright side, this tells us its incremental sales were profitable.

3. TBVPS Growth Demonstrates Strong Asset Foundation

For banks, tangible book value per share (TBVPS) is a crucial metric that measures the actual value of shareholders’ equity, stripping out goodwill and other intangible assets that may not be recoverable in a worst-case scenario.

Although CVB Financial’s TBVPS increased by a meager 2.8% annually over the last five years, the good news is that its growth has recently accelerated as TBVPS grew at a decent 10.4% annual clip over the past two years (from $8.74 to $10.64 per share).

Final Judgment

CVB Financial isn’t a terrible business, but it doesn’t pass our quality test. With its shares trailing the market in recent months, the stock trades at 1.2× forward P/B (or $19.66 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - we think there are better stocks to buy right now. We’d suggest looking at our favorite semiconductor picks and shovels play.

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