| Net Income | Gross Profit | ||
| 2008 | 0.00 | 0.00 | |
| 2009 | 0.00 | 0.00 | |
| 2018 | 0.00 | 0.00 | |
| 2019 (projected) | 0.00 | 0.00 |
Should I still rely on First Financial management in April 2019?
 | By Rifka Kats | Macroaxis Story |
Today article will outline First Financial. I will cover the possibilities of making First Financial into a steady grower in April. This firm Piotroski F Score is 6 - Healthy. Given the investment horizon of 30 days, First Financial is expected to generate 5.59 times less return on investment than the market. In addition to that, the company is 1.86 times more volatile than its market benchmark. It trades about 0.03 of its total potential returns per unit of risk. The market is currently generating roughly 0.28 per unit of volatility. We consider First Financial not too risky. First Financial Bank secures Sharpe Ratio (or Efficiency) of 0.0274 which denotes the organization had 0.0274% of return per unit of risk over the last 1 month. Our philosophy towards predicting 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 First Financial Bankshares which you can use to evaluate future volatility of the firm. Please confirm First Financial Bank Downside Deviation of 1.36, Mean Deviation of 0.9007 and Coefficient Of Variation of 1788.18 to check if risk estimate we provide are consistent with the epected return of 0.0329%.
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Reviewed by Raphi Shpitalnik
FIRST FINL BKSHS currently holds roughly 239.5M in cash with 188.99M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 3.56. First Financial dividends can provide a clue to current valuation of the stock. The firm one year expected dividend income is about $0.39 per share. Let me now analyze First Financial Price to Sales. Based on latest financial disclosure the price to sales indicator of First Financial Bankshares is roughly 11.23 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 Sales for all stocks is notably lower than the entity.
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 Bank.
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 Bankshares 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 Bankshares. 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 the case for First Financial
The current investor indifference towards the small price fluctuations of First Financial Bank could raise concerns from investors as the firm closed today at a share price of 60.44 on 712962.000 in volume. The company management did not add any value to First Financial investors in February. However, most investors can still diversify their portfolios with First Financial Bank to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.2008. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. First Financial preserves 2.22x of earnings per share. First Financial is trading at 61.17. This is 1.16 percent up. Today lowest is 60.44. First Financial Profit Margin is quite stable at the moment. Further, First Financial Earning Before Interest and Taxes EBIT is increasing over the last 4 years.
To conclude, we see that First Financial Slowly supersedes market. The corporation is overvalued with low chance of financial distress within the next 24 months. Our prevailing Buy/Hold/Sell recommendation on the corporation is Strong Hold.
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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 Rifka Kats do not own shares of First Financial Bankshares. Please refer to our Terms of Use for any information regarding our disclosure principles.