FBL Financial Story

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FFG -- USA Stock  

USD 56.95  0.36  0.63%

The next fiscal quarter end is expected on the 30th of September 2020. The stock experiences an active upward rally. FBL Financial Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 150.99 Million. The current year Earnings before Tax is expected to grow to about 153.1 M, whereas Average Assets are forecasted to decline to about 9.9 B. Although many aggressive traders are getting into financial services space, FBL Financial Group may or may not be your first choice. We will analyze why FBL Financial investors may still consider a stake in the business.
Published over three months ago
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Should I exit my FBL Financial (NYSE:FFG) holdings?
FBL Financial Group has 97 M in debt with debt to equity (D/E) ratio of 0.06, which may show that FBL Financial is not taking advantage of profits from borrowing. On a scale of 0 to 100, FBL Financial holds a performance score of 5. The firm shows a Beta (market volatility) of -0.1306, which means not very significant fluctuations relative to the market. Let's try to break down what FBL Financial's beta means in this case. As returns on the market increase, returns on owning FBL Financial are expected to decrease at a much lower rate. During the bear market, FBL Financial is likely to outperform the market. Although it is vital to follow FBL Financial Group historical returns, it is good to be conservative about what you can do with the information regarding equity current trending patterns. The approach towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing FBL Financial Group technical indicators, you can right now evaluate if the expected return of 0.39% will be sustainable into the future. Please utilizes FBL Financial Group treynor ratio, and the relationship between the variance and potential upside to make a quick decision on whether FBL Financial price patterns will revert.
FBL Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of FBL Financial, including all of FBL Financial'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 FBL Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall FBL Financial 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 FBL Financial Total Liabilities

FBL Financial Group liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. FBL Financial Group 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 FBL Financial balance sheet include debt obligations and money owed to different FBL Financial vendors, workers, and loan providers. Below is the chart of FBL Financial short long-term liabilities accounts currently reported on its balance sheet.
You can use FBL Financial Group financial leverage analysis tool to get a better grip on understanding its financial position

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.

What is driving FBL Financial Investor Appetite?

The entity reported the last year's revenue of 714.2 M. Total Income to common stockholders was 83.41 M with profit before taxes, overhead, and interest of 264.05 M.
 2017 2018 2019 2020 (projected)
Cash and Equivalents52.7 M19.04 M17.28 M17.73 M
Total Assets10.05 B9.83 B10.48 B9.83 B

The case for FBL Financial dip maybe to hold

Potential upside is down to 4.53. 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.

Although many other companies under the insurance?life industry are still a bit expensive, FBL Financial may offer a potential longer-term growth to shareholders. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of FBL Financial as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to FBL Financial.

About Contributor

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 Raphi 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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