FBL Financial Story

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FFG -- USA Stock  

USD 57.68  1.47  2.62%

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 4.73 percent, with a beta of -0.16 and an alpha of 0.26 over DOW. As many investors are getting excited about insurance, it is fair 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 buy FBL Financial after the latest volatility dip?
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. On a scale of 0 to 100, FBL Financial holds a performance score of 6. The firm shows a Beta (market volatility) of -0.1554, 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 0.42% 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.
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.
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 0.0895, which denotes the company had 0.0895% 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-one technical indicators for FBL Financial Group, which you can use to evaluate future volatility of the entity. Please utilize FBL Financial Group Downside Deviation of 2.8, semi deviation of 2.58, 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

Are FBL Financial technical ratios showing a come-back?

Market Risk Adjusted Performance just dropped to -3.17, may indicate upcoming price depreciation. FBL Financial Group currently demonstrates below-verage downside deviation. It has Information Ratio of 0.42 and Jensen Alpha of 0.26. 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 Take On FBL Financial

Although some firms within the insurance?life industry are still a little expensive, even after the recent corrections, FBL Financial may offer a potential longer-term growth to shareholders. To sum up, as of the 7th of September 2020, our primary 30 days buy-hold-sell advice on the firm is Strong Hold. We believe FBL Financial is undervalued with very low odds of financial distress for the next two years.

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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