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.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Republic First has an asset utilization ratio of 10.85 percent. This signifies that the company is making $0.11 for each dollar of assets. An increasing asset utilization means that Republic First Bcp is more efficient with each dollar of assets it utilizes for everyday operations.
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.
Will Republic plunge impact its fundamentals?
Recent Information Ratio is up to -0.08. Price may plunge again. Republic First Bcp exhibits very low volatility with skewness of 0.1 and kurtosis of 1.94. 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
Our Final Takeaway
Although some 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. On the whole, as of the 23rd of July 2022, we believe Republic First is currently
overvalued. It moves indifferently to market moves and projects
very low probability of financial unrest in the next two years. Our current 90 days buy-or-sell advice on the firm is
Sell.
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Gabriel Shpitalnik is a Member of Macroaxis 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 Republic First Bancorp. Please refer to our
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