BBX Capital Story

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BBX -- USA Stock  

USD 9.97  0.98  8.95%

BBX Capital is scheduled to announce its earnings today. The upcoming quarterly report is expected on the 6th of November 2020. BBX Capital symbol was renamed from BBX to BVH on 1st of October 2020. BBX Capital PPandE Turnover is fairly stable at the moment as compared to the past year. BBX Capital reported PPandE Turnover of 6.62 in 2019. Cash and Equivalents Turnover is likely to rise to 1.95 in 2020, whereas Average Equity is likely to drop slightly above 475.3 M in 2020. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down BBX Capital as a unique choice for millenniums. Let's try to inspect if BBX Capital shares are reasonably priced going into December.
Published over three weeks ago
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Should I hold on to my BBX Capital (NYQ:BBX) position?
BBX Capital has 879.94 M in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. The entity has a current ratio of 24.21, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.
BBX Capital financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of BBX Capital, including all of BBX Capital's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of BBX Capital assets, the company is considered highly leveraged. Understanding the composition and structure of overall BBX Capital debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding BBX Capital Total Debt

BBX Capital liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. BBX Capital has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on BBX Capital balance sheet include debt obligations and money owed to different BBX Capital vendors, workers, and loan providers. Below is the chart of BBX Capital main long-term debt accounts currently reported on its balance sheet.
You can use BBX Capital financial leverage analysis tool to get a better grip on understanding its financial position

How important is BBX Capital's Liquidity

BBX Capital financial leverage refers to using borrowed capital as a funding source to finance BBX Capital ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. BBX Capital 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. Please check the breakdown between BBX Capital's total debt and its cash.

BBX Capital exotic insider transaction detected

Legal trades by BBX Capital insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
BBX Capital insider trading alert for general transaction of class b common stock par value $0.01 per share by Alan Levan, Chairman and CEO, on 26th of August 2020. This event was filed by Bbx Capital Corp with SEC on 2020-08-26. Statement of changes in beneficial ownership - SEC Form 4. Alan Levan currently serves as chairman of the board, chief executive officer of BBX Capital [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is BBX Capital valued reasonably by the market?

The firm reported the last year's revenue of 715.84 M. Reported Net Loss for the year was (36.27 M) with profit before taxes, overhead, and interest of 635.65 M.

Liabilities Breakdown

23.3 M
Deposit Liabilities
69.3 M
Total Liabilities
Deposit Liabilities23.31 Million
Total Liabilities69.33 Million
Tax Liabilities76.68 Million

BBX Capital may start a reversion in December

Current variance is at 19.21. BBX Capital exhibits very low volatility with skewness of -1.64 and kurtosis of 7.71. However, we advise investors to further study BBX Capital technical indicators to make sure all market info is available and is reliable.

Our Takeaway on BBX Capital Investment

While many of the other players under the resorts & casinos industry are still a bit expensive, BBX Capital may offer a potential longer-term growth to investors. Taking everything into account, as of the 1st of November 2020, our research shows that BBX Capital is a rather somewhat reliable investment opportunity with a below average odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our actual 30 days Buy-Hold-Sell recommendation on the company is Hold.

About Contributor

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 Raphi Shpitalnik do not own shares of BBX Capital. Please refer to our Terms of Use for any information regarding our disclosure principles.

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