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.
Analysis of Republic First Bcp
Recent variance is at 15.98.
As of the 30th of September, Republic First holds the
risk adjusted performance of
(0.11), and Coefficient Of Variation of
(920.47). Republic First Bcp
technical analysis gives you tools to exploit past prices in attempt to determine a pattern that determines the direction of the company's future prices. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We have analyzed nineteen
technical drivers for Republic First Bcp, which can be compared to its competitors. Please check
Republic First Bcp treynor ratio, as well as the
relationship between the downside variance and
kurtosis to decide if Republic First Bcp is priced some-what accurately, providing market reflects its current price of 2.89 per share. Please also confirm Republic First Bcp
total risk alpha, which is currently at
(0.12) to check out the company can sustain itself at a future point.
Our Conclusion on Republic First
Although some other firms 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. To conclude, as of the 30th of September 2022, our analysis shows that Republic First responds to the market. The firm is
undervalued and projects
very low probability of financial unrest for the next 2 years. However, our primary 90 days buy-hold-sell advice on the firm is
Strong Sell.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, 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 Vlad Skutelnik do not own shares of Republic First Bancorp. Please refer to our
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