Central Story

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CPF -- USA Stock  

USD 23.04  0.41  1.75%

Central Pacific Fina is scheduled to announce its earnings today. The next earnings report is expected on the 28th of April 2021. Central Pacific 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 97 Million. The current year Earnings before Tax is expected to grow to about 96.7 M, whereas Average Assets are forecasted to decline to about 6.5 B. As many investors are getting excited about financial services space, it is fair to digest Central Pacific Financial as an investment option.
Published over three weeks ago
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You think Central Pacific (NYSE:CPF) debt is an issue for shareholders?
Central Pacific Fina has 353.03 M in debt with debt to equity (D/E) ratio of 9.37, demonstrating that Central Pacific may be unable to create cash to meet all of its financial commitments. Our trade advice tool can cross-verify current analyst consensus on Central Pacific Fina and to analyze the company potential to grow in the current economic cycle. The company has Net Profit Margin of 19.88 %, 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.
Central Pacific financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Central Pacific, including all of Central Pacific'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 Central Pacific assets, the company is considered highly leveraged. Understanding the composition and structure of overall Central Pacific 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 Central Pacific's Liquidity

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

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 decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 64.97 Million

A Deeper Perspective

The latest price surge of Central Pacific Fina could raise concerns from shareholders as the firm it trading at a share price of 18.65 on 229,740 in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.85. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Central Pacific partners.

Asset Breakdown

Total Assets6.53 Billion
Goodwill6.79 Million
Tax Assets1.99 Million

A growth case for Central Pacific

Latest risk adjusted performance is at 0.12. As of the 27th of January, Central Pacific shows the Risk Adjusted Performance of 0.1241, downside deviation of 2.84, and Mean Deviation of 2.48. 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 18.65 per share. Given that Central Pacific has jensen alpha of (0.17), 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 Takeaway on Central Pacific Investment

Although some other companies under the banks?regional industry are still a bit expensive, Central Pacific may offer a potential longer-term growth to shareholders. To summarize, as of the 27th of January 2021, our research shows that Central Pacific is a rather not too volatile investment opportunity with a below average odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our present 30 days advice on the firm is 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 Achuva Shats 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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