In the world of finance, cash is king. This adage rings true for Arrowmark Financial Corp (USA Stocks: BANX), a player in the financial services sector, currently experiencing a significant upsurge in its cash flow. From a beginning period cash flow of $83.8K, the company has seen a substantial increase to $395.4K at the end of the period. This increase in cash, coupled with a strong return on equity of 9.55%, suggests a healthy financial position. However, with a PE ratio of 8.94, below the financial sector average, and a dividend yield of 10.02%, investors might be wondering if it's time to strategically divest Fluent (USA Stocks: FLNT) and Arrowmark Financial. It appears that Fluent may be due for a correction sooner than expected, as its share price has risen by 2.94% today, compared to Arrowmark Financial's increase of 0.78%. With many prudent traders steering clear of the capital markets sector, it's logical to delve deeper into Arrowmark Financial Corp's performance and see how it measures up against Fluent and other comparable companies. We will examine some of the competitive aspects of both Arrowmark and Fluent.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Arrowmark or DWS is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Arrowmark Financial dividends
A dividend is the distribution of a portion of Arrowmark Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Arrowmark Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Arrowmark one year expected dividend income is about USD1.35 per share.
At this time, Arrowmark Financial's
Dividend Payout Ratio is fairly stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is likely to rise to 1.05 in 2024, whereas
Dividends Paid is likely to drop slightly above 11.5
M in 2024.
Investing in dividend-paying stocks, such as Arrowmark Financial Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Arrowmark Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Arrowmark Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Arrowmark Financial's Liquidity
Arrowmark Financial
financial leverage refers to using borrowed capital as a funding source to finance Arrowmark Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arrowmark Financial 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 Arrowmark Financial'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 Arrowmark Financial'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 Arrowmark Financial's total debt and its cash.
Correlation Between Arrowmark and DWS Municipal Income
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Arrowmark Financial together with similar or unrelated positions with a negative correlation. For example, you can also add DWS Municipal to your portfolio. If DWS Municipal is not perfectly correlated to Arrowmark Financial it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Arrowmark Financial, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Arrowmark Financial and DWS Municipal in your portfolio? Please note if you are using this as a pair-trade strategy between Arrowmark Financial and DWS Municipal, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BANX and KTF for more information.
Breaking it down a bit more
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Arrowmark Financial revenue. Based on the latest financial disclosure, Arrowmark Financial Corp reported 7.86
M of revenue. This is 99.93% lower than that of the Capital Markets sector and 99.85% lower than that of the
Financials industry.
The revenue for all United States stocks is 99.92% higher than that of Arrowmark Financial. As for Fluent we see revenue of 361.13
M, which is 93.26% lower than that of the Financials
| BANX | 7.86 Million | 0.14 |
| Sector | 5.36 Billion | 93.56 |
| FLNT | 361.13 Million | 6.3 |
Every cloud has a silver lining, and for investors, the recent upsurge in Fluent (USA Stocks: FLNT) and Arrowmark Financial (USA Stocks: BANX) could be just that. With a five-year return of 7.42% and a current ratio of 3.11X, Arrowmark Financial has demonstrated a strong financial position. The company's operating margin stands at 0.77%, and with a net income of $5.37M, it's clear that the firm is profitable. However, the probability of bankruptcy stands at a concerning 65.36%, suggesting a high level of risk. The company's payout ratio is a mere 0.0171, indicating that it retains most of its earnings, which could be a red flag for dividend investors. Given these factors, it may be a strategic move for investors to consider divesting their holdings in Fluent and Arrowmark Financial, capitalizing on the recent upsurge to maximize returns. .
Arrowmark may start a correction in January
The expected shortfall indicator for Arrowmark Financial Corp has notably dropped to -0.9, signaling a heightened risk of substantial losses. This might lead to a surge in the stock's price as investors could adjust their holdings in anticipation of a more advantageous risk-return trade-off. However, considering the prevailing market conditions and the stock's recent performance, it is likely that Arrowmark may undergo a correction starting in January. This potential correction could present a timely opportunity for investors seeking an entry point into the stock. However, it is also vital to consider the elevated risk levels. Arrowmark Financial Corp has relatively low volatility with a skewness of 0.64 and kurtosis of 2.33. Nevertheless, we advise all investors to conduct independent research on Arrowmark Financial Corp to ensure that all available information aligns with expectations about its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. Proper utilization of volatility indicators allows traders to gauge Arrowmark Financial's stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect
Arrowmark Financial's stock price, causing stress to investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop.
Our Final Takeaway
When is the right time to buy or sell Arrowmark Financial Corp? Buying stocks such as Arrowmark Financial isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
To conclude, as of the 19th of December 2023, we believe Arrowmark Financial is currently
overvalued. It follows the market closely and projects
very small probability of distress in the next two years. However, our primary 90 days buy-sell recommendation on the company is
Buy.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Arrowmark Financial Corp. Please refer to our
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