Cambridge Stock Story


USD 82.66  0.66  0.79%   

As many investors are getting excited about financial services space, it is fair to go over Cambridge Bancorp. What exactly are Cambridge Bancorp shareholders getting in August? Is the firm valuation justified? Here we go over Cambridge Bancorp perspective on valuation to give you a better outlook on taking a position in this stock.
Published over two weeks ago
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Should I rely on Cambridge Bancorp management in August 2022?

Cambridge Bancorp currently holds 48.41 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. Debt can assist Cambridge Bancorp until it has trouble settling it off, either with new capital or with free cash flow. So, Cambridge Bancorp's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Cambridge Bancorp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Cambridge to invest in growth at high rates of return. When we think about Cambridge Bancorp's use of debt, we should always consider it together with cash and equity.
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 8.19 percent. This suggests that the company is making $0.0819 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.
We determine the current worth of Cambridge Bancorp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Cambridge Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Cambridge Bancorp's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Cambridge Bancorp's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Cambridge Bancorp. We calculate exposure to Cambridge Bancorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Cambridge Bancorp's related companies.

Cambridge Bancorp Investment Alerts

Cambridge investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Cambridge Bancorp performance across your portfolios.Please check all investment alerts for Cambridge

Cambridge Bancorp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Cambridge value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Cambridge Bancorp competition to find correlations between indicators driving the intrinsic value of Cambridge.

How does Cambridge utilize 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 65.51 Million

Cambridge Bancorp exotic insider transaction detected

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 general transaction of common stock by Fontaine Thomas J, Chief Banking Officer, on 25th of June 2022. This event was filed by Cambridge Bancorp with SEC on 2022-02-17. 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 174.77 M. Net Income was 53.59 M with profit before overhead, payroll, taxes, and interest of 173.6 M.

Margins Breakdown

Cambridge profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Cambridge Bancorp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Cambridge Bancorp profit margins.
Profit Margin
EBITDA Margin0.41
Gross Margin0.89
Profit Margin0.3

Cambridge Bancorp Revenue Per Employee is somewhat stable at the moment. Moreover, Cambridge Bancorp Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment.

Cambridge Bancorp has 84 percent chance to finish above $81 in August

The standard deviation is down to 1.77 as of today.
As of the 19th of July, Cambridge Bancorp shows the Downside Deviation of 1.51, risk adjusted performance of 0.0627, and Mean Deviation of 1.36. Cambridge Bancorp technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to interpolate and analyze data for nineteen technical drivers for Cambridge Bancorp, which can be compared to its rivals. Please confirm Cambridge Bancorp treynor ratio, and the relationship between the variance and potential upside to decide if Cambridge Bancorp is priced correctly, providing market reflects its regular price of 82.2 per share. Given that Cambridge Bancorp has jensen alpha of 0.1595, we suggest you to validate Cambridge Bancorp's prevailing market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Cambridge Bancorp Investment

Whereas many of the other players 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. To conclude, as of the 19th of July 2022, we believe that Cambridge Bancorp is currently undervalued with low chance of financial distress in the next two years. Our primary 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 Vlad Skutelnik 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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