Does Bluegreen Vacations (USA Stocks:BVH) have strong basic indicators based on the recent surge?

Bluegreen Vacations (BVH) has recently seen a surge in its stock price, and a look at its fundamental indicators suggests that this trend may continue. The company's net income stands at a healthy $81.25M, indicating strong profitability. This is further supported by a profit margin of 0.06%, which, while modest, is a positive sign. The company's operating income, another key profitability indicator, is also robust at $129.5M. On the other hand, BVH's change in working capital is a loss of $236.7M, which could indicate some short-term liquidity challenges. However, with a Price to Earnings to Growth (PEG) ratio of 0.48X, the stock appears undervalued relative to its growth potential. In conclusion, despite some potential liquidity concerns, Bluegreen Vacations' strong profitability and undervalued status suggest it could be a good investment for growth-oriented investors.

Main Considerations

Bluegreen Vacations exhibits relatively low volatility over a three-month investment horizon. The company's Sharpe Ratio, or Efficiency Ratio, stands at 0.12, indicating that it has generated a 0.12% return per unit of risk over the past three months. When predicting the risk of a stock, it's crucial to utilize both market data and company-specific technical data. We have managed to interpolate and analyze data for twenty-seven distinct technical indicators, which can assist in determining whether the anticipated returns of 1.63% are commensurate with the proposed risk. To evaluate the company-specific risk that cannot be diversified away, consider Bluegreen Vacations' Mean Deviation of 3.59, risk-adjusted performance of 0.0922, and Downside Deviation of 2.06.
Published over six months ago
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Reviewed by Vlad Skutelnik

Bluegreen Vacations (NYSE: BVH), a prominent player in the Hotels, Restaurants & Leisure sector, has been demonstrating robust fundamental indicators that suggest potential growth. The company has shown a promising operating margin of 30.93%, backed by an EBIT of $129.5M, indicating a strong profitability. Despite a loss of $12.9M from operating activities, the company managed to increase its cash position by $43.4M. Moreover, with a low debt to equity ratio of 2.36%, the company's financial health appears stable. Interestingly, the company's trailing PE stands at 20.07, while its price to earnings is at a lower 7.98X, hinting at a possible undervaluation. With Wall Street's target price set at $60, the stock seems to have room for appreciation. However, investors should also consider the company's probability of bankruptcy at 55.45% in their decision-making process. Despite somewhat inconsistent fundamental indicators, Bluegreen Vacations may be nearing a pivotal reversion point that could propel its shares even higher in December 2023. The probability of financial distress for Bluegreen Vacations Holding is less than 1 percent. Will traders continue to invest in Bluegreen Vacations come December?
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 Bluegreen Vacations income statement, its balance sheet, and the statement of cash flows. Potential Bluegreen Vacations investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Bluegreen Vacations investors may use each financial statement separately, they are all related. The changes in Bluegreen Vacations's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Bluegreen Vacations'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 Bluegreen Vacations fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Bluegreen Vacations performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Bluegreen Vacations shares is the value that is considered the true value of the share. If the intrinsic value of Bluegreen 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 Bluegreen Vacations. Please read more on our fundamental analysis page.

And What about dividends?

A dividend is the distribution of a portion of Bluegreen Vacations 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. Bluegreen Vacations 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. Bluegreen one year expected dividend income is about USD0.23 per share.
Investing in stocks that pay dividends, such as stock of Bluegreen Vacations Holding, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Bluegreen Vacations 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 Bluegreen Vacations. 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 Bluegreen Vacations's Liquidity

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

Another angle On Bluegreen Vacations

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Bluegreen Vacations is not uncomon. Many companies such as Bluegreen Vacations have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Bluegreen is distributed among investors.

Ownership Allocation

Bluegreen Vacations retains a total of 12.2 Million outstanding shares. Bluegreen Vacations Holding retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company's outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
Retail Investors
16.42%
Insiders
43.6%
Institutions
39.98%
Retail Investors16.42
Insiders43.6
Institutions39.98
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 Bluegreen Vacations' 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 Bluegreen Vacations' decisions due to their larger holdings.

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Bluegreen Vacations has an asset utilization ratio of 58.47 percent. This signifies that the company is making $0.58 for each dollar of assets. An increasing asset utilization means that Bluegreen Vacations Holding is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
1.3 B
Current Assets1.28 Billion95.24
Goodwill63.89 Million4.76
Every cloud has a silver lining, and for Bluegreen Vacations (USA Stocks:BVH), the silver lining appears to be its robust fundamental indicators. Despite a recent surge in the stock, the company's fundamentals remain strong, with a current ratio of 7.97X, indicating a healthy financial position. The company's earnings per share (EPS) estimate for the current year stands at 4.19, suggesting potential profitability. Furthermore, the company's book value is 12.685, which when compared to its price book of 1.7759, indicates that the stock may be undervalued. However, it's worth noting that the company has a high probability of bankruptcy at 55.45%, which could be a concern for potential investors. On the brighter side, the company's industry, Resorts & Casinos, is known for its resilience and potential for growth. In conclusion, while Bluegreen Vacations shows promising fundamentals, investors should also consider the associated risks.

Bluegreen Vacations has 100.0 percent likelihood to plunge below $72 in December

Bluegreen Vacations Holding Corporation's stock is currently exhibiting significant volatility, with the downside deviation falling to 2.06 as of today. This statistical measure suggests a higher risk of negative returns, indicating that the stock price may undergo a substantial decline. Given the current market conditions and the company's recent performance, there is a 100.0 percent probability that Bluegreen Vacations' stock could dip below $72 in December. Investors are advised to exercise caution and consider this potential risk when making investment decisions. Bluegreen Vacations Holding is showing above-average volatility over the chosen time period. Investors should evaluate Bluegreen Vacations Holding independently to ensure their market timing strategies align with their expectations of the company's volatility. Understanding different market volatility trends often assists investors in timing the market correctly. Utilizing volatility indicators appropriately allows traders to gauge the risk of Bluegreen Vacations' stock against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly affect Bluegreen Vacations' stock price, adding stress to investors as they witness a decrease in the value of their shares.
This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices fall. In light of today's plunge, Bluegreen Vacations Holding stock presents a compelling investment opportunity. The analyst overall consensus is a Strong Buy, backed by two strong buy recommendations. The stock's valuation real value stands at $66.85, which is significantly higher than the current market price. Furthermore, the possible upside price of $88.9 indicates a substantial potential for growth. However, investors should also consider the possible downside price of $61.91. The fiscal year end in December could bring further clarity to the company's financial position. With the valuation market value at $73.2 and the naive expected forecast value at $75.41, the stock seems to be undervalued. Therefore, based on these data points, Bluegreen Vacations Holding stock appears to be a promising investment. .

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Editorial Staff

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 Bluegreen Vacations Holding. Please refer to our Terms of Use for any information regarding our disclosure principles.

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