Central Story

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CPF -- USA Stock  

USD 17.73  0.56  3.26%

A current spike in volatility has left many shareholders looking confused. In this story, we will digest Central Pacific Financial. We will analyze why it could be a much better year for Central Pacific shareholders. On the 28th of October the company is traded for 13.68. Central Pacific Fina has historical hype elasticity of -0.03. The entity is forecasted to decline in value after the next press release, with the price expected to drop to 14.85. The average volatility of headline impact on Central Pacific stock price is huge, making predictions on the news or social media along less reliable. The price depreciation on the next news is expected to be -0.07%, whereas the daily expected return is currently at -0.18 percent. Considering the 30-days investment horizon, the next forecasted announcement will be in about 3 days.
Published over a month ago
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Is Central Pacific (NYSE:CPF) losing trust from shareholders?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Central Pacific has an asset utilization ratio of 4.01 percent. This indicates that the company is making $0.0401 for each dollar of assets. An increasing asset utilization means that Central Pacific Financial is more efficient with each dollar of assets it utilizes for everyday operations. The company has Net Profit Margin of 22.81 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of 30.56 %, which entails that for every 100 dollars of revenue, it generated 0.31 of operating income.
The successful prediction of Central Pacific stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices of traded companies, such as Central Pacific Financial, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value of Central Pacific based on Central Pacific hews, social hype, general headline patterns, and widely used predictive technical indicators. We also calculate exposure to Central Pacific's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Central Pacific's related companies.

Use Technical Analysis to project Central expected Price

Central Pacific technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Central Pacific technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Central Pacific trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...

How Central utilizes its cash?

To perform a cash flow analysis of Central Pacific, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Central Pacific is receiving and how much cash it distributes out in a given period. The Central Pacific cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Central Pacific 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 72.19 Million

A Deeper Perspective

Central Pacific Fina price dip over the last few months could raise concerns from shareholders as the firm it trading at a share price of 13.68 on slow start in volume. The company directors and management were not very successful in positioning the firm resources to exploit market volatility in September. However, diversifying your holdings with Central Pacific Financial or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.44. The current volatility is consistent with the ongoing market swings in September 2020 as well as with Central Pacific unsystematic, company-specific events.

Revenues Breakdown

Central Pacific Revenues is increasing over the years with slightly volatile fluctuation. Revenues is expected to dwindle to about 207.6 M. Revenues usually refers to amount of Revenue recognized from goods sold; services rendered; insurance premiums; or other activities that constitute an earning process. Interest income for financial institutions is reported net of interest expense and provision for credit losses. Central Pacific Revenues is projected to increase significantly based on the last few years of reporting. The past year's Revenues was at 219.56 Million
2013
2014
2015
2016
2017
2018
2019
2020
2013199.36 Million
2014191 Million
2015200 Million
2016205.78 Million
2017206.87 Million
2018212.93 Million
2019219.56 Million
2020207.64 Million

Chances of Central Pacific to turn the corner

Latest Information Ratio is up to -0.02. Price may dip again. As of the 28th of October, Central Pacific shows the Downside Deviation of 2.24, risk adjusted performance of 0.008, and Mean Deviation of 1.66. Central Pacific Fina 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 data for nineteen technical drivers for Central Pacific Financial, which can be compared to its rivals. Please confirm Central Pacific Fina maximum drawdown, and the relationship between the information ratio and downside variance to decide if Central Pacific Fina is priced correctly, providing market reflects its regular price of 13.68 per share. Given that Central Pacific has jensen alpha of 0.0043, we suggest you to validate Central Pacific Financial's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Central Pacific

Although some other companies in the banks?regional industry are either recovering or due for a correction, Central Pacific may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Central valuation and our trade advice on Central Pacific is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Central Pacific.

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 Central Pacific Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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