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.
Volatility is a rate at which the price of Republic First or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Republic First may increase or decrease. In other words, similar to Republic's
beta indicator, it measures the risk of Republic First and helps estimate the fluctuations that may happen in a short period of time. So if prices of Republic First fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. 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.
Republic First has 87 percent chance to stay above $3.69 in 2 months
Recent market risk adjusted performance is at -0.62. Republic First Bcp exhibits very low volatility with skewness of 0.04 and kurtosis of 2.16. 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 Bottom Line On Republic First Bcp
Although some firms in the banks—regional industry are either recovering or due for a correction, Republic may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 30th of July 2022, we believe that at this point, Republic First is
fairly valued with
very low chance of bankruptcy within the next 2 years. Our present buy-or-sell advice on the firm is
Hold.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of Republic First Bancorp. Please refer to our
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