| 2017 | 2018 | 2019 | 2020 (projected) | Share Based Compensation | 1.02 M | 1.2 M | 1.54 M | 1.24 M | Net Cash Flow from Operations | 25.75 M | 27.5 M | 32.68 M | 28.45 M |
Is that a good time to trade American National (NASDAQ:AMNB)?
 | By Ellen Johnson | Macroaxis Story |
Given the investment horizon of 90 days, American National is expected to generate 4.06 times less return on investment than the market. In addition to that, the company is 2.38 times more volatile than its market benchmark. It trades about 0.01 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.11 per unit of volatility. As many old-fashioned traders are trying to avoid financial services space, it makes sense to go over American National Bankshares a little further and try to understand its current volatility patterns. We will analyze how risky is to take a position in American National at this time. American National's low volatility may still impact the value of the stock as we estimate it as currently fairly valued. The real value, based on our analysis, is getting close to 23.35 per share.
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Reviewed by Rifka Kats
American National Bankshares currently holds roughly 251.6 M in cash with 34.95 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 22.95, which can makes it an attractive takeover target, given it will continue generating positive cash flow. Volatility is a rate at which the price of American National or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of American National may increase or decrease. In other words, similar to American's beta indicator, it measures the risk of American National and helps estimate the fluctuations that may happen in a short period of time. So if prices of American National fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is American National's Liquidity
American National financial leverage refers to using borrowed capital as a funding source to finance American National Bankshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. American National financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to American National's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of American National's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between American National's total debt and its cash.
Breaking it down a bit more
American National reported the previous year's revenue of 91.45 M. Net Income was 30.16 M with profit before overhead, payroll, taxes, and interest of 91.84 M.
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