Community Story

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CBU -- USA Stock  

USD 71.91  1.33  1.82%

Community Bank System is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 25th of January 2021. Community Bank Return on Average Equity is comparatively stable at the moment as compared to the past year. Community Bank reported Return on Average Equity of 0.08 in 2020. Return on Sales is likely to gain to 0.42 in 2021, whereas Average Assets are likely to drop slightly above 11.5 B in 2021. As many passive investors are finally getting excited about financial services space, Community Bank System could be a good starting point.
Published over a month ago
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Will Community Bank (NYSE:CBU) debt increase in February
Community Bank System has 380.7 M in debt with debt to equity (D/E) ratio of 0.35, which is OK given its current industry classification. Macroaxis provides unbiased investment recommendation on Community Bank System that should be used to complement current analysts and expert consensus on Community Bank System. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon.
Community Bank financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Community Bank, including all of Community Bank'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 Community Bank assets, the company is considered highly leveraged. Understanding the composition and structure of overall Community Bank 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 Community Bank's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Community Bank, but it might be worth checking our own buy vs. sell analysis

Breaking down Community Bank Further

The entity reported the last year's revenue of 575.88 M. Total Income to common stockholders was 160.57 M with profit before taxes, overhead, and interest of 581.36 M.
 2018 2019 2020 2021 (projected)
Net Income168.64 M169.06 M194.42 M164.11 M
Gross Profit558.28 M581.36 M668.57 M583.44 M

Community Bank implied volatility may change after the drop

Newest standard deviation is at 2.73. Community Bank System currently demonstrates below-verage downside deviation. It has Information Ratio of 0.07 and Jensen Alpha of 0.36. However, we do advice investors to further question Community Bank System expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Takeaway on Community Bank Investment

Whereas other entities under the banks?regional industry are still a bit expensive, Community Bank may offer a potential longer-term growth to private investors. Taking everything into account, as of the 24th of January 2021, our research shows that Community Bank is a rather very steady investment opportunity with a low chance of distress in the next two years. From a slightly different view, the entity currently appears to be overvalued. Our ongoing 30 days 'Buy-vs-Sell' recommendation on the firm is Strong Hold.

About Contributor

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 Community Bank System. Please refer to our Terms of Use for any information regarding our disclosure principles.

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