By analyzing existing primary indicators between Impac Mortgage and Monroe, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Monroe with a short position in Impac Mortgage. Check out our
pair correlation module for more information.
Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Impac Mortgage has an asset utilization ratio of 0.0553 percent. This implies that the company is making $5.53E-4 for each dollar of assets. An increasing asset utilization means that Impac Mortgage Holdings is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Impac or CNFinance is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Impac Mortgage's Liquidity
Impac Mortgage
financial leverage refers to using borrowed capital as a funding source to finance Impac Mortgage Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Impac Mortgage 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 Impac Mortgage'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 Impac Mortgage'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 Impac Mortgage's total debt and its cash.
Correlation Between Impac and CNFinance Holdings
In general, Delisted Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Impac Mortgage together with similar or unrelated positions with a negative correlation. For example, you can also add CNFinance Holdings to your portfolio. If CNFinance Holdings is not perfectly correlated to Impac Mortgage it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Impac Mortgage, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Impac Mortgage and CNFinance Holdings in your portfolio? Please note if you are using this as a pair-trade strategy between Impac Mortgage and CNFinance Holdings, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between IMH and CNF for more information.
Breaking it down
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Now, let's check Impac Mortgage revenue. Based on the latest financial disclosure, Impac Mortgage Holdings reported 3.02
M of revenue. This is 99.97% lower than that of the Financial Services sector and significantly higher than that of the
Mortgage Finance industry. The revenue for all United States stocks is 99.97% higher than that of Impac Mortgage. As for Monroe Capital we see revenue of 53.83
M, which is much higher than that of the Mortgage Finance
| IMH | 3.02 Million | 5.31 |
| Sector | 0.0 | 0.0 |
| MRCC | 53.83 Million | 94.69 |
Does Impac Mortgage have anything more to lay out in July?
Variance is down to 15.44. It may hint to a possible volatility drop. Impac Mortgage Holdings exhibits very low volatility with skewness of 0.36 and kurtosis of 0.37. However, we advise investors to further study Impac Mortgage Holdings technical indicators to make sure all market info is available and is reliable. Impac Mortgage Holdings is a potential penny stock. Although Impac Mortgage may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Impac Mortgage Holdings. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Impac instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.
Our Final Takeaway
While many other companies in the mortgage finance industry are either recovering or due for a correction, Impac Mortgage may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 9th of July 2022, we believe Impac Mortgage is currently
overvalued. It follows the market closely and projects
average probability of distress in the next two years. Our primary 90 days buy vs. sell advice on the company is
Strong Sell.
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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 Impac Mortgage Holdings. Please refer to our
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