FBL Financial Story

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FFG -- USA Stock  

USD 56.54  1.41  2.43%

Macroaxis News
By Gabriel Shpitalnik  
Macroaxis Story
It looks as if FBL Financial will continue to recover much faster as its share price surged up 31.19% today. FBL Financial Group's current daily volatility is 4.7 percent, with a beta of -0.13 and an alpha of 0.5 over DOW. As many baby boomers are still indifferent towards insurance, it makes sense to digest FBL Financial Group. I will address the reasons why this entity does not get much respect from shareholders under the current market uncertainty.
Published over three months ago
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Should you trade FBL Financial Group after the latest volatility surge?
FBL Financial Group has roughly 24.72 M in cash with 221.36 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.01. Our investment recommendation tool can be used to complement FBL Financial trade advice provided by experts. It analyzes the company's potential to grow against your specific risk preferences and investment horizon.
Investing in FBL 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 FBL 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, frequently view the market will even out over time. This tendency of FBL Financial's stock 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. Please use the tools below to analyze the current value of FBL Financial in the context of predictive analytics.
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Please note, it is not enough to conduct a financial or market analysis of a single entity such as FBL Financial. Your research has to be compared to or analyzed against FBL Financial's peers to derive any actionable benefits. When done correctly, FBL Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in FBL Financial Group.

How important is FBL Financial's Liquidity

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

How FBL Financial utilizes its cash?

To perform a cash flow analysis of FBL Financial, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash FBL Financial is receiving and how much cash it distributes out in a given period. The FBL Financial cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. FBL Financial 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 191.75 Million

FBL Financial Correlation with Peers

Investors in FBL Financial can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in FBL Financial Group. Diversification will allow for the same portfolio return with reduced risk. The correlation table of FBL Financial and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities FBL Financial 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 FBL Financial for more details

What is driving FBL Financial Investor Appetite?

FBL Financial appears to be very steady, given 1 month investment horizon. FBL Financial Group secures Sharpe Ratio (or Efficiency) of 0.0823, which denotes the company had 0.0823% of return per unit of risk over the last month. Our approach towards predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for FBL Financial Group, which you can use to evaluate future volatility of the entity. Please utilize FBL Financial Group Semi Deviation of 2.58, downside deviation of 2.8, and Mean Deviation of 2.6 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Can FBL Financial build up on the latest surge?

Variance is down to 22.36. It may indicate a possible volatility dip. FBL Financial Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.5. However, we do advice investors to further question FBL Financial Group expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Although some firms under the insurance?life industry are still a bit expensive, FBL Financial may offer a potential longer-term growth to shareholders. To summarize, as of the 5th of September 2020, we believe FBL Financial is currently fairly valued. It moves totally opposite to the market and projects low odds of financial turmoil in the next two years. Our current 30 days advice on the firm is Strong Hold.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of FBL Financial Group. Please refer to our Terms of Use for any information regarding our disclosure principles.

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