By analyzing existing forward indicators between FB Financial and Meridian, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Meridian with a short position in FB Financial. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. FB Financial has an asset utilization ratio of 9.34 percent. This signifies that the company is making $0.0934 for each dollar of assets. An increasing asset utilization means that FB Financial is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as FBK or HMN is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding FB Financial dividends
A dividend is the distribution of a portion of FB Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. FB Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. FBK one year expected dividend income is about USD0.39 per share.
At this time, FB Financial's
Dividend Payout Ratio is quite stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is expected to rise to 28.31 this year, although the value of
Dividends Paid will most likely fall to about 23.1
M.
Investing in dividend-paying stocks, such as FB Financial Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in FB Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for FB Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is FB Financial's Liquidity
FB Financial
financial leverage refers to using borrowed capital as a funding source to finance FB Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. FB Financial 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 FB Financial'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 FB Financial'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 FB Financial's total debt and its cash.
Correlation Between FBK and HMN Financial
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding FB Financial together with similar or unrelated positions with a negative correlation. For example, you can also add HMN Financial to your portfolio. If HMN Financial is not perfectly correlated to FB Financial it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When FB Financial, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both FB Financial and HMN Financial in your portfolio? Please note if you are using this as a pair-trade strategy between FB Financial and HMN Financial, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between FBK and HMNF for more information.
Breaking down FB Financial Further
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check FB Financial revenue. Based on the latest financial disclosure, FB Financial reported 380.72
M of revenue. This is 96.6% lower than that of the Financial Services sector and significantly higher than that of the
Banks—Regional industry. The revenue for all United States stocks is 95.96% higher than that of FB Financial. As for Meridian Bancorp we see revenue of 182.94
M, which is much higher than that of the Banks—Regional
| FB Financial | 380.72 Million |
| Sector | 0.0 |
| Meridian | 182.94 Million |
FB Financial is projected to stay under $38 in February
Variance is down to 8.23. It may signify a possible volatility plunge. FB Financial currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.49. However, we do advice investors to further question FB Financial expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Bottom Line On FB Financial
Although some other entities within the banks—regional industry are still a little expensive, even after the recent corrections, FB Financial may offer a potential longer-term growth to traders. All things considered, as of the 25th of January 2021, we believe that at this point, FB Financial is
overvalued with
average chance of distress within the next 2 years. Our concluding buy-hold-sell recommendation on the firm is
Strong Sell.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of FB Financial Corp. Please refer to our
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