Cambridge Stock Story

CATC -  USA Stock  

USD 93.36  1.48  1.61%

Cambridge Bancorp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 19th of October 2021. Cambridge Bancorp Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 35.23 Million. The current year Asset Turnover is expected to grow to 0.0384, whereas Average Assets are forecasted to decline to about 3.3 B. As many investors are getting excited about financial services space, it is fair to go over Cambridge Bancorp as an investment option. Let's try to analyze if Cambridge Bancorp shares are reasonably priced going into November.
Published over a month ago
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How much will Cambridge Bancorp owe in November?
Cambridge Bancorp currently holds 81.11 M in liabilities with Debt to Equity (D/E) ratio of 11.16, indicating Cambridge Bancorp may have difficulties to generate enough cash to satisfy its financial obligations.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Cambridge Bancorp has an asset utilization ratio of 8.23 percent. This suggests that the company is making $0.0823 for each dollar of assets. An increasing asset utilization means that Cambridge Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
Cambridge Bancorp financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Cambridge Bancorp, including all of Cambridge Bancorp'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 Cambridge Bancorp assets, the company is considered highly leveraged. Understanding the composition and structure of overall Cambridge Bancorp 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.

How important is Cambridge Bancorp's Liquidity

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

How Cambridge utilizes its cash?

To perform a cash flow analysis of Cambridge Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Cambridge Bancorp is receiving and how much cash it distributes out in a given period. The Cambridge Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Cambridge Bancorp Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 36.8 Million

Payment of 114 shares by Nevatia Puneet of Cambridge Bancorp subject to Rule 16b-3

Legal trades by Cambridge Bancorp 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:
Cambridge insider trading alert for payment of common stock by Nevatia Puneet, SVP and CIO, on 18th of November 2021. This event was filed by Cambridge Bancorp with SEC on 2021-11-18. Statement of changes in beneficial ownership - SEC Form 4 [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.

Detailed Perspective On Cambridge Bancorp

The entity reported the previous year's revenue of 175.55 M. Net Income was 53.72 M with profit before overhead, payroll, taxes, and interest of 141.45 M.

Asset Breakdown

Total Assets3.47 Billion
Goodwill46.23 Million
Tax Assets10.51 Million

Will Cambridge slip impact its fundamentals?

Standard deviation is down to 1.47. It may suggest a possible volatility slip. Cambridge Bancorp has relatively low volatility with skewness of 0.27 and kurtosis of 0.29. However, we advise all investors to independently investigate Cambridge Bancorp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Cambridge Bancorp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Cambridge Bancorp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Conclusion on Cambridge Bancorp

Whereas other companies in the banks—regional industry are either recovering or due for a correction, Cambridge Bancorp may not be performing as strong as the other in terms of long-term growth potentials. On the whole, as of the 18th of October 2021, our analysis shows that Cambridge Bancorp follows the market closely. The company is undervalued and projects low chance of bankruptcy for the next 2 years. Our up-to-date 90 days recommendation on the company is Strong Buy.

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

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