The company currently holds 11.28
M in liabilities with Debt to Equity (D/E) ratio of 0.2, which may suggest Republic First is not taking enough advantage from borrowing. Debt can assist Republic First until it has trouble settling it off, either with new capital or with free cash flow. So, Republic First's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Republic First Bcp sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Republic to invest in growth at high rates of return. When we think about Republic First's use of debt, we should always consider it together with cash and equity.
Republic First financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Republic First, including all of Republic First'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 Republic First assets, the company is considered highly leveraged. Understanding the
composition and structure of overall Republic First 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.
Watch out for price decline
Please consider monitoring Republic First on a daily basis if you are holding a position in it. Republic First is trading at a penny-stock level, and the possibility of delisting is much higher compared to other delisted stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Republic First stock to be traded above the $1 level to remain listed. If Republic First stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
How important is Republic First's Liquidity
Republic First
financial leverage refers to using borrowed capital as a funding source to finance Republic First Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Republic First 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 Republic First'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 Republic First'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 Republic First's total debt and its cash.
Breaking down Republic First Further
Republic First Bcp reported the previous year's revenue of 156.21
M. Net Income was 21.68
M with profit before overhead, payroll, taxes, and interest of 156.21
M.
| 2019 | 2020 | 2021 | 2022 (projected) |
Revenues USD | 99.64 M | 123.87 M | 142.45 M | 112.79 M | Revenues | 99.64 M | 123.87 M | 142.45 M | 112.79 M |
Our take on today Republic First surge
Variance is down to 5.86. It may signify a possible volatility plunge. Republic First Bcp exhibits very low volatility with skewness of -0.26 and kurtosis of 0.3. However, we advise investors to further study Republic First Bcp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Republic First's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Republic First's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Republic First Implied Volatility
Republic First's implied volatility exposes the market's sentiment of Republic First Bcp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Republic First's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Republic First stock will not fluctuate a lot when Republic First's options are near their expiration.
Our Takeaway on Republic First Investment
Although other companies in the banks—regional industry are either recovering or due for a correction, Republic First may not be performing as strong as the other in terms of long-term growth potentials. While some traders may not share our view we believe that the current risk-reward utility is not appealing enough to do any trading. 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 Republic First.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Republic First Bancorp. Please refer to our
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