What is Arrowmark Financial (USA Stocks:BANX) earnings potential based on the current fundamentals?
 | By Vlad Skutelnik | Macroaxis Story |
Our trade advice tool can cross-verify the current analyst consensus on Arrowmark Financial Corp and assess the company's potential for growth in the present economic cycle. The dividends of Arrowmark Financial can offer insights into the current value of the stock. The company's expected dividend income for one year is approximately $1.26 per share.
Stocks that pay dividends often exhibit more stable price movements during market downturns compared to those that do not. The regular income from dividends can provide a cushion against potential capital losses during periods of market volatility. However, it's crucial to remember that dividend payments are not guaranteed. Companies like Arrowmark Financial Corp can reduce or suspend dividend payments if they encounter financial difficulties or choose to prioritize other cash uses.
Furthermore, stocks that pay dividends may not offer the same level of capital appreciation as those that do not, particularly in high-growth sectors.
Major Takeaways
Arrowmark Financial Corp (BANX) presents an intriguing investment opportunity from a fundamentals perspective. The company boasts a robust current ratio of 3.11X, indicating a healthy ability to cover its short-term liabilities. This is further supported by a low number of shares shorted at 4.01K, suggesting a lower risk of share price manipulation. On the other hand, BANX's operating margin stands at a meager 0.77%, which may raise concerns about the company's operational efficiency. However, with a net asset value of $208.5M, significantly higher than its current valuation of $177.07M, Arrowmark Financial Corp appears undervalued, potentially offering investors a chance to capitalize on this discrepancy. Despite the probability of bankruptcy standing at 65.36%, the company's strong fundamentals may provide a cushion against such risks.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 Michael Smolkin
The proof is in the pudding when it comes to the earnings potential of Arrowmark Financial Corp (BANX). A deep dive into the company's fundamentals reveals a promising picture. With a trailing PE of 8.98, the company's shares are attractively priced relative to its earnings per share of 2.01. The company's net income stands at $5.4M, reflecting a profit margin of 0.56%. This is supported by an EBITDA of $7.7M and operating income of the same value, indicating a healthy operational efficiency. The company's cash flow from operations is robust at $15.84M, despite a slight decrease in operating activities by $643.3K. Arrowmark's balance sheet is also strong, with net tangible assets of $147.7M and total assets of $208.5M. The company's market capitalization is $128.3M, and it operates in the capital markets service category. Despite paying out dividends of $11.6M, the company has managed to maintain a positive cash position of $369.7K. The stock's price to book ratio is 0.84X, suggesting it could be undervalued. With a target price of $22 and possible upside price of $20.1, there's potential for significant capital appreciation. However, investors should also consider the possible downside price of $17.7. The company's fundamentals, coupled with an analyst buy recommendation, make Arrowmark Financial Corp a compelling consideration for investors seeking to unlock earnings potential. Arrowmark Financial Corp is set to announce its earnings tomorrow. The stock is currently experiencing regular trading activities. As the capital markets space attracts new investors, it's worth examining whether Arrowmark Financial Corp is emitting any bullish signals. We will delve into why this could potentially be a significantly better year for Arrowmark Financial shareholders. At present, we assess Arrowmark Financial as overvalued, with the real value nearing $9.68 per share.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Arrowmark Financial income statement, its balance sheet, and the statement of cash flows. Potential Arrowmark Financial investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Arrowmark Financial investors may use each financial statement separately, they are all related. The changes in Arrowmark Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Arrowmark Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Arrowmark Financial fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Arrowmark Financial performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Arrowmark Financial shares is the value that is considered the true value of the share. If the intrinsic value of Arrowmark is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Arrowmark Financial. Please read more on our fundamental analysis page. How effective is Arrowmark Financial in utilizing its assets?
Arrowmark Financial Corp reports assets on its Balance Sheet. It represents the amount of Arrowmark resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Arrowmark Financial aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Asset Management & Custody Banks space. To get a better handle on how balance sheet or income statements item affect Arrowmark volatility, please check the breakdown of all its fundamentals.Are Arrowmark Financial Earnings Expected to grow?
The future earnings power of Arrowmark Financial involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Arrowmark Financial factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Arrowmark Financial stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Arrowmark expected earnings.
And What about 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. | Last Reported | Projected for Next Year | ||
| Dividends Paid | 15 M | 11.5 M | |
| Dividend Yield | 0.12 | 0.07 | |
| Dividend Payout Ratio | 0.74 | 1.32 | |
| Dividend Paid And Capex Coverage Ratio | 1.00 | 1.05 |
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.Arrowmark Financial Gross Profit
Arrowmark Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Arrowmark Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Arrowmark Financial Gross Profit growth over the last 10 years. Please check Arrowmark Financial's gross profit and other fundamental indicators for more details.
Breaking it down a bit more
The modest gains experienced by current holders of Arrowmark Financial could raise concerns from investors as the firm is trading at a share price of 18.81 on 26,946 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in November. The stock standard deviation of daily returns for 90 days investing horizon is currently 1.2. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors. Please be aware that individual investors typically purchase shares for their personal accounts and usually in smaller quantities compared to institutional investors. While they might influence Arrowmark Financial's decisions if they own a significant combined portion of its shares, such influence is relatively rare. Conversely, institutional investors - like mutual funds, pension funds, hedge funds, and other investment companies - often have a substantial sway over Arrowmark Financial's decisions due to their larger holdings. The proof of the pudding is in the eating, and the same holds true when it comes to the earnings potential of Arrowmark Financial Corp (BANX).A deep dive into the company's current fundamentals reveals a strong financial position. With a healthy current ratio of 3.11X, the company has more than enough resources to cover its short-term obligations. The company's operating margin stands at 0.77%, indicating a decent level of operational efficiency. Moreover, Arrowmark's net interest income of $18.2 million and operating income of $7.7 million further underscore its robust earnings potential. The company's net income of $5.37 million, despite a payout ratio of 1.0169, indicates a sustainable dividend policy. Lastly, a beta of 0.5 suggests lower volatility compared to the market, making Arrowmark a potentially safer bet for investors. In conclusion, Arrowmark Financial Corp's strong fundamentals position it well to unlock significant earnings potential. .
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