Returns Breakdown
| Return on Assets | 0.009526 | |
| Return on Equity | 0.0881 | |
| Return Capital | 0.0153 | |
| Return on Sales | 0.37 |
Is Bank Of Commerce (NASDAQ:BOCH) outlook positive for November 2020?
 | By Gabriel Shpitalnik | Macroaxis Story |
Bank Of Commerce PPandE Turnover is most likely to slightly decrease in the upcoming years. The last year's value of PPandE Turnover was reported at 4.39. The current Cash and Equivalents Turnover is estimated to increase to 1.03, while Net Income Per Employee is projected to decrease to roughly 56 K. The essential intention for this outlook is to break down our current position on Bank Of Commerce for stockholders considering to short it. We will examine why Bank Of Commerce stockholders may still consider a stake in the business.
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Reviewed by Rifka Kats
Bank Of Commerce has performance score of 4 on a scale of 0 to 100. The firm shows a Beta (market volatility) of 0.0518, which signifies not very significant fluctuations relative to the market. Let's try to break down what Bank Of Commerce's beta means in this case. As returns on the market increase, Bank Of Commerce returns are expected to increase less than the market. However, during the bear market, the loss on holding Bank Of Commerce will be expected to be smaller as well. Although it is extremely important to respect Bank Of Commerce historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Bank Of Commerce technical indicators, you can presently evaluate if the expected return of 0.16% will be sustainable into the future. Bank Of Commerce right now shows a risk of 2.6%. Please confirm Bank Of Commerce downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Bank Of Commerce will be following its price patterns.
How important is Bank Of Commerce's Liquidity
Bank Of Commerce financial leverage refers to using borrowed capital as a funding source to finance Bank Of Commerce ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bank Of Commerce 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 Bank Of Commerce'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 Bank Of Commerce'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 Bank Of Commerce's total debt and its cash.
Is Bank Of Commerce valued properly by the market?
Bank Of Commerce currently demonstrates below-verage downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.2. However, we do advice investors to further question Bank Of Commerce expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
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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 Gabriel Shpitalnik do not own shares of Bank Of Commerce. Please refer to our Terms of Use for any information regarding our disclosure principles.