| 2018 | 2019 (projected) | First Financial Share Based Compensation | 4,818,600 | 3,942,268 | First Financial Net Cash Flow from Operations | 124,524,900 | 261,399,999 |
First Financial builds up to 0.7009
 | By Ellen Johnson | Macroaxis Story |
This article is aimed at all current or potential First Financial investors. I will look into why albeit cyclical market disturbance, the long term basic indicators of the company are still strong. The company Piotroski F Score is 5 - Healthy. Given the investment horizon of 30 days, First Financial is expected to generate 1.51 times less return on investment than the market. In addition to that, the company is 2.25 times more volatile than its market benchmark. It trades about 0.09 of its total potential returns per unit of risk. The market is currently generating roughly 0.3 per unit of volatility. What is First Financial Target Price Odds to finish over Current Price? Depending on normal probability distribution, the odds of First Financial to move above current price in 30 days from now is about 74.68%. The First Financial Bancorp probability density function shows the probability of First Financial Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, the stock has beta coefficient of 1.0717 suggesting First Financial Bancorp market returns are sensitive to returns on the market. As the market goes up or down, First Financial is expected to follow. Additionally, the company has a negative alpha implying that the risk taken by holding this equity is not justified. First Financial Bancorp is significantly underperforming S&P 500.
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Reviewed by Gabriel Shpitalnik
FIRST FINL BCP OH currently holds roughly 188.06M in cash with 261.4M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.91. This firm dividends can provide a clue to current valuation of the stock. First Financial one year expected dividend income is about $0.36 per share. Let me now go over First Financial Price to Earnings To Growth. Based on latest financial disclosure the price to earnings to growth indicator of First Financial Bancorp is roughly 1.11 times. This is much higher than that of the Financial Services sector, and significantly higher than that of Banks - Regional - US industry, The Price to Earnings To Growth for all stocks is notably lower than First Financial Bancorp.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as First Financial. Your research has to be compared to or analyzed against First Financial's peers to derive any actionable benefits. When done correctly, First Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in First Financial Bancorp.
Investing in First Financial, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding First Financial along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of First Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is First Financial's Liquidity
First Financial financial leverage refers to using borrowed capital as a funding source to finance First Financial Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First 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 First 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 First 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 First Financial's total debt and its cash.
First Financial Gross Profit
First Financial Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing First Financial previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show First Financial Gross Profit growth over the last 10 years. Please check First Financial's gross profit and other fundamental indicators for more details.
First Financial Correlation with Peers
Investors in First can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in First Financial Bancorp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of First Financial and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities First is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of First for more details
Breaking down First Financial Further
The modest gains experienced by current holders of First Financial could raise concerns from investors as the firm closed today at a share price of 25.68 on 242393 in volume. The company executives have been quite successful with maneuvering the stock at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.4809. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. First Financial is selling at 25.86. That is 0.70 percent increase. Opened at 25.86. First Financial Net Cash Flow from Investing is increasing over the last 4 years. The previous year value of First Financial Net Cash Flow from Investing was 187,765,099. First Financial Invested Capital is somewhat stable at the moment. Additionally, First Financial Price to Earnings Ratio is somewhat stable at the moment.
All in all, our research shows that First Financial is not too volatile with below average chance of bankruptcy in the next two years. Our ongoing Buy/Hold/Sell recommendation on the company is Strong Hold.
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