Central Stock Story

CPF -  USA Stock  

USD 23.05  0.12  0.52%

While many traders are getting carried away by overanalyzing financial services space, it is reasonable to digest Central Pacific Financial. We are going to cover the possibilities of making Central Pacific into your portfolio. Is the firm operations in 2022 sustainable? Here we are going to cover Central Pacific Financial perspective on valuation to give you a better outlook on taking a position in this stock.
Published over three months ago
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Is Central Pacific growth trend slowing down?
Central Pacific Financial has 147.51 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 investment recommendation module complements current analysts and expert consensus on Central Pacific. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time.
We determine the current worth of Central Pacific Financial 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 Central Pacific Financial based exclusively on its fundamental and basic technical indicators. By analyzing Central Pacific'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 Central Pacific'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 Central Pacific. We 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.

Central Pacific Financial Investment Alerts

Central 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 Central Pacific Financial performance across your portfolios.Please check all investment alerts for Central

Central Pacific Valuation Ratios as Compared to Competition

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

How does Central utilize 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 110.49 Million

Going after Central Financials

The entity reported the last year's revenue of 259.38 M. Total Income to common stockholders was 69.74 M with profit before taxes, overhead, and interest of 203.21 M.
 2019 2020 2021 2022 (projected)
Net Income58.32 M37.27 M33.55 M42.32 M
Gross Profit219.56 M203.76 M234.33 M242.25 M

Margins Breakdown

Central profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Central Pacific itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Central Pacific profit margins.
Profit Margin
EBITDA Margin0.4
Gross Margin0.89
Profit Margin0.22

Central Pacific Earnings Before Interest Taxes and Depreciation Amortization EBITDA is rather stable at the moment. Also, Central Pacific Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment.

Possible February turnaround of Central?

The expected short fall is down to -1.24 as of today. Central Pacific Financial has relatively low volatility with skewness of -0.07 and kurtosis of 0.47. However, we advise all investors to independently investigate Central Pacific Financial to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Central Pacific's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Central Pacific's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Central Pacific Implied Volatility

Central Pacific's implied volatility exposes the market's sentiment of Central Pacific Financial stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Central Pacific's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Central Pacific stock will not fluctuate a lot when Central Pacific's options are near their expiration.

Our Conclusion on Central Pacific

Although some other companies within the banks—regional industry are still a little expensive, even after the recent corrections, Central Pacific may offer a potential longer-term growth to shareholders. All things considered, as of the 26th of January 2022, our analysis shows that Central Pacific almost mirrors the market. The firm is undervalued and projects low probability of distress for the next 2 years. Our ongoing 90 days buy-or-sell advice on the firm 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 Gabriel 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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