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Great Southern Bancorp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 25th of January 2021. Great Southern Free Cash Flow is projected to increase significantly based on the last few years of reporting. The past year's Free Cash Flow was at 86.06 Million. The current year Calculated Tax Rate is expected to grow to 17.49, whereas Net Income Per Employee is forecasted to decline to about 44.6 K. While some baby boomers are getting worried about financial services space, it is reasonable to go over Great Southern Bancorp as an investment alternative. We will evaluate why recent Great Southern price moves suggest a bounce in February.

Published over a month ago

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How much will Great Southern owe in February?

Great Southern Bancorp currently holds 345.86 M in liabilities with Debt to Equity (D/E) ratio of 0.06, which may suggest Great Southern is not taking enough advantage from borrowing. Our trade recommendations tool can be used to complement Great Southern Bancorp advice provided by experts. It analyzes the entity's potential to grow against your specific risk preferences and investment horizon.

Great Southern financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Great Southern, including all of Great Southern'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 Great Southern assets, the company is considered highly leveraged. Understanding the composition and structure of overall Great Southern 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.

Understanding Great Total Debt

Great Southern Bncp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Great Southern Bncp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Great Southern balance sheet include debt obligations and money owed to different Great Southern vendors, workers, and loan providers. Below is the chart of Great main long-term debt accounts currently reported on its balance sheet.

You can use Great Southern Bncp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Great Southern's Liquidity

Great Southern financial leverage refers to using borrowed capital as a funding source to finance Great Southern Bncp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Great Southern 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. Please check the breakdown between Great Southern's total debt and its cash.

Great Southern exotic insider transaction detected

Legal trades by Great Southern insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Great insider trading alert for general transaction of option to purchase by Debra Hart, the corporate stakeholder, on 12th of February 2021. This event was filed by Great Southern Bancorp In with SEC on 2021-02-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Detailed Perspective On Great Southern

The current rise in Great Southern Bancorp short term price appreciation may raise some interest from investors. The stock closed today at a share price of 51.16 on 26,400 in trading volume. The company management teams have successfully maneuvered the firm at convenient times to take advantage of all market conditions in December. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.4. The current volatility is consistent with the ongoing market swings in December 2020 as well as with Great Southern Bancorp unsystematic, company-specific events.

Liabilities Breakdown

	Deposit Liabilities	4.29 Billion
	Total Liabilities	4.82 Billion
	Tax Liabilities	2.67 Million

Will price continue to rise in February 2021?

The jensen alpha is down to 0.46 as of today. Great Southern Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.11 and Jensen Alpha of 0.46. However, we do advice investors to further question Great Southern Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Final Takeaway

Whereas many other companies under the banks?regional industry are still a bit expensive, Great Southern may offer a potential longer-term growth to investors. On the whole, as of the 24th of January 2021, we believe Great Southern is currently overvalued. It moves indifferently to market moves and projects below average chance of financial distress in the next two years. Our up-to-date 30 days buy vs. sell advice on the company is Cautious Hold.

About Contributor

Ellen Johnson is a Member of Macroaxs 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 Great Southern Bncp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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