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.
Understanding Central Total Liabilities
Central Pacific Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Central Pacific Financial has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Central Pacific balance sheet include debt obligations and money owed to different Central Pacific vendors, workers, and loan providers. Below is the chart of Central short long-term liabilities accounts currently reported on its balance sheet.
You can use Central Pacific Financial
financial leverage analysis tool to get a better grip on understanding its financial position
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. Financial leverage can amplify the potential profits to Central Pacific's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Central Pacific's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Central Pacific's total debt and its cash.
Going after Central Financials
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 Assets | 6.53 Billion |
| Goodwill | 6.79 Million |
| Tax Assets | 1.99 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.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile 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 Rifka Kats do not own shares of Central Pacific Financial. Please refer to our
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