Margin Breakdown
0.36
Profit Margin
0.51
EBITDA Margin
| EBITDA Margin | 0.51 | |
| Gross Margin | 0.89 | |
| Profit Margin | 0.36 |
Our projection for American National (USA Stocks:AMNB) in February
 | By Gabriel Shpitalnik | Macroaxis Story |
The company, American National Bankshares, has a beta of 2.1206. This indicates that the returns of American National are highly sensitive to market fluctuations. As the market experiences ups and downs, American National's performance is expected to mirror these movements. The beta indicator assists investors in understanding whether American National's movements align with the rest of the market, and it also provides insight into its volatility (i.e., risk) in comparison to the market (i.e., selected benchmark). In simpler terms, if American National's performance deviates minimally from the market, it doesn't significantly contribute to the risk of the portfolio, but it also doesn't enhance the expected returns.
Major Takeaways
American National Bankshares stock is currently trading at a quote of 47.03, which is above the Wall Street target price of 43, indicating a potential overvaluation. However, with a 200-day moving average of 36.83 and a 52-week high of 50.76, the stock shows a positive trend. The P/E ratio of 16.56 is reasonable, but the PEG ratio of 5.19 suggests that the company's future earnings growth is already priced into the stock. Therefore, investors should carefully consider these factors before deciding to invest in American National Bankshares.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
Every cloud has a silver lining, and for investors eyeing the banking sector, American National Bankshares may just be that glimmer of hope. The bank, listed on the NASDAQ, has seen a fair share of volatility, with a 52-week high of $50.76 and a PEG Ratio of 5.19. Despite the undulating market, the bank has shown a consistent payout ratio of 0.42, signaling a potential for a steady stream of dividends. As of January 21, 2024, the bank's stock was valued at a real value of $44.15, slightly lower than the valuation hype value of $47.03. However, with a possible upside price of $48.37, there's an opportunity for growth. The bank's Beta of 0.952 further indicates a lower volatility compared to the overall market, a sign that the stock may provide a stable investment. Yet, it's not all clear skies. The bank's EPS estimate for the current quarter stands at $0.51, with a slightly higher estimate of $0.53 for the next quarter. With only one analyst providing these estimates, the forecast value stands at a naive expected $46.13, lower than the 50-day MA of $45.137 but significantly higher than the 200-day MA of $36.8257. While the potential for upside exists, the short ratio of 2.89 and short percent of 0.0069 indicate a level of skepticism among investors. Moreover, the analyst target price estimated value stands at $35, with the lowest and highest estimated target prices also at $35, suggesting a possible downside price of $43.88. So, is it time to reconsider American National Bankshares stock? With two holds from analysts, the decision may not be clear-cut. Yet, the bank's solid performance and potential for growth could be the silver lining for investors in these uncertain times. As always, prudence and due diligence are key in navigating the financial landscape. Currently, American National's Calculated Tax Rate is projected to decrease, based on the reporting trends of the past few years. The Cash and Equivalents Turnover for the current year is expected to increase to 0.46, while the Net Income Per Employee is forecasted to decline to approximately $67.9K. Today's brief article will examine American National as a potential investment opportunity. We will explore why investors should maintain their confidence in American National's outlook.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as American National. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.
Predictive Modules for American National
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 Bankshares currently demonstrates below-average downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of -0.01. However, we advise investors to further question American National Bankshares expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure American National's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact American National's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
As Warren Buffet once said, "Price is what you pay, value is what you get." With this in mind, let's take a closer look at American National Bankshares, a regional bank listed on NASDAQ with a market capitalization of $499.88M. The bank has a robust financial position, with total assets of $3.07B and a net income of $30.12M. Despite a payout ratio of 42.4%, the bank maintains a healthy operating margin of 0.38% and a return on equity of 9.4%. The current valuation stands at $601.35M, with a price to earnings ratio of 16.56X, indicating a fair valuation. However, the bank's downside deviation of 2.02 and a semi deviation of 1.71 signal potential volatility. The bank's PEG ratio of 5.19X suggests it may be overvalued relative to its earnings growth. Therefore, while American National Bankshares presents a stable financial profile, investors should exercise caution due to potential market volatility and overvaluation. .
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