Will Bogota (USA Stocks:BSBK) continue to grow in July?

Every cloud has a silver lining, and Bogota Financial Corp (BSBK) is no exception. Despite operating in the challenging financial services sector, the company has managed to maintain a healthy balance sheet. With a total liability of $803.7M, Bogota Financial Corp has a short and long-term debt total of $167.7M, a manageable figure considering its net invested capital of $304.9M. The company's cash flow at the beginning of the period was $16.8M, and it currently holds $24.9M in cash, providing a cushion for potential market volatility. However, it's worth noting that the company's total operating expenses stand at $4.5M, with an EBIT of $480.4M, indicating a robust operational efficiency. Despite a selling general administrative expense of $661M, the company reported a net income from continuing operations of $3.7M. The company's current assets total $28.9M, providing a solid foundation for future growth. However, the company's total cash from financing activities was a loss of $14.9M, indicating a need for better financial management. Despite these challenges, the company's stock has shown resilience with a day median price of $6.84 and a market valuation of $6.72. The period momentum indicator stands at 0.02, indicating a potential for growth. The overall analyst consensus for Bogota Financial Corp is a 'Hold', suggesting a cautious approach for potential investors. In conclusion, while Bogota Financial Corp operates in a challenging industry, its healthy balance sheet and operational efficiency make it a potential investment consideration. However, investors should keep an eye on its financing activities and market volatility. Bogota Financial Corp is set to release its earnings report tomorrow. Currently, the company's Price-to-Free-Cash-Flow (PFCF) ratio remains stable compared to last year. However, it's projected to increase to 99.98 this year, while the Price-to-Book (PTB) ratio is likely to decrease to 0.72. As many millennials are steering clear of the banking sector, it's worthwhile to delve deeper into Bogota Financial Corp to comprehend its current market trends.
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Reviewed by Raphi Shpitalnik

Bogota Financial Corp (BSBK) presents a potentially risky investment from a leverage viewpoint, as evidenced by its Total Risk Alpha of -0.07, indicating a higher risk compared to the market. The company's financial health is further put into question with a significant decrease in cash from financing activities, reporting a loss of 14.9M. However, the company's ability to manage its working capital, with an increase of 537.3K, may provide some reassurance to potential investors.

Key Points

Bogota Financial Corp currently has liabilities of 167.69 million, with a Debt to Equity (D/E) ratio of 9.83. This suggests that Bogota Financial may struggle to generate sufficient cash to meet its financial obligations. We offer trading advice to supplement the existing expert consensus on Bogota Financial Corp. Our advanced recommendation engine employs a multidimensional algorithm to assess the company's growth potential, using all available technical and fundamental data.
Bogota Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bogota Financial, including all of Bogota Financial'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 Bogota Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bogota Financial 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 Bogota Total Liabilities

Bogota Financial Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bogota Financial Corp 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 Bogota Financial balance sheet include debt obligations and money owed to different Bogota Financial vendors, workers, and loan providers. Below is the chart of Bogota short long-term liabilities accounts currently reported on its balance sheet.
You can use Bogota Financial Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bogota Financial's Liquidity

Bogota Financial financial leverage refers to using borrowed capital as a funding source to finance Bogota Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bogota 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 Bogota 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 Bogota 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 Bogota Financial's total debt and its cash.

Breaking down Bogota Financial Further

Bogota Financial Corp reported the previous year's revenue of 38.42 M. Net Income was 642.53 K with profit before overhead, payroll, taxes, and interest of 23.78 M.

Asset Breakdown

Earning Assets
656.7 M
Other Assets
871 M
Total Assets
Net Tangible Assets
Total Assets871.04 Million
Net Tangible Assets115.71 Million
Non Current Assets Total957.57 Million
Non Currrent Assets Other921.58 Million
Other Assets656.67 Million
Other Current Assets27.42 Million
Total Current Assets27.42 Million
Intangible Assets150,686
Earning Assets165.59 Million
Cash is king, but debt can be a dangerous jester. Bogota Financial Corp (BSBK), a player in the Banks - Regional industry, presents a mixed bag of financial health indicators.
The company's Debt to Equity ratio stands at a moderate 9.83%, suggesting a balanced approach to leveraging debt for growth. However, a closer look at the company's financials reveals a concerning Probability of Bankruptcy at 70.93%. Despite a Net Income of $642.53K and a positive Free Cash Flow of $1.1M, the high bankruptcy risk and negative Return on Equity of -0.01 indicate potential turbulence ahead for BSBK. Investors should approach with caution and keep a close eye on the company's debt management and future earnings reports..

Will price continue to rise in July 2024?

Bogota Financial Corp's stock shows a promising trend with a mean deviation dropping to 1.22, indicating lower volatility and suggesting a less risky investment. However, this doesn't guarantee a price increase in July 2024. Other market factors and the company's financial performance will significantly influence the stock's future price. Therefore, investors should monitor the stock closely. Bogota Financial Corp's low volatility, with skewness of -0.42 and kurtosis of 1.35, can help investors time the market.
Using volatility indicators properly allows traders to measure Bogota Financial's stock risk against market volatility during bullish and bearish trends. High volatility in bear markets can impact Bogota Financial's stock price and stress investors, often leading them to rebalance their portfolios by buying different financial instruments as prices fall.In conclusion, Bogota Financial Corp's current market valuation of $6.72 is slightly above its hype value of $6.71, indicating a potential for rebound. However, the real value of $8.13 suggests that the stock is currently undervalued. Analysts' target prices range from $10.92 to $13.32, further supporting the potential for a rebound. However, with the fiscal year end in December and only one hold recommendation from analysts, investors should exercise caution and closely monitor the stock's performance. The overall consensus is to hold, indicating a neutral outlook for the stock..

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Editorial Staff

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