The company, Luther Burbank, has a debt of $1.36 billion, with a debt to equity (D/E) ratio of 10.59. This indicates that Luther Burbank may struggle to generate sufficient cash to meet all of its financial obligations. We offer investment recommendations to supplement the latest expert consensus on Luther Burbank. Our advanced recommendation engine utilizes a multidimensional algorithm to assess the company's growth potential, taking into account all available technical and fundamental data at the time.
Key Points
From a valuation perspective, Luther Burbank's financials present a mixed bag. The bank's Z Score of
0.36 is relatively low, suggesting a potential risk of financial distress, while its Debt to Equity ratio stands at
10.59%, which is manageable but could limit future growth opportunities. On the brighter side, Luther Burbank's Price to Earnings ratio is
12.04X, which is lower than the industry average, indicating that the stock could be undervalued. These factors combined suggest that while there may be some risk associated with investing in Luther Burbank, the potential for significant returns could make it a worthwhile consideration for risk-tolerant investors.
We determine the current worth of Luther Burbank using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Luther Burbank based exclusively on its
fundamental and basic
technical indicators. By analyzing Luther Burbank's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Luther Burbank's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Luther Burbank. We calculate exposure to Luther Burbank's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Luther Burbank's related companies.
Luther Burbank Investment Alerts
Luther investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Luther Burbank performance across your portfolios.Please check all
investment alerts for Luther
Luther Burbank Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Luther value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Luther Burbank competition to find
correlations between indicators driving the intrinsic value of Luther.
Breaking down Luther Burbank Further
The modest gains experienced by current holders of Luther Burbank may encourage shareholders to take a closer look at the firm as it is trading at a share price of
9.39 on very low momentum in trading volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in
January. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.4. The current volatility is consistent with the ongoing market swings in
January 2024 as well as with Luther Burbank unsystematic, company-specific events.
| 2021 | 2022 | 2023 | 2024 (projected) |
Net Income | 87.8M | 80.2M | 92.2M | 81.7M | Gross Profit | 183.1M | 177.8M | 204.4M | 186.1M |
Margins Breakdown
Luther profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Luther Burbank itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Luther Burbank profit margins.
| EBITDA Margin | 0.71 |
| Gross Margin | 0.89 |
| Profit Margin | 0.52 |
Luther Burbank Net Income Per Employee is increasing over the last 8 years. The latest value of Luther Burbank Net Income Per Employee is 242,124.
Also, Luther Burbank Earnings Before Interest Taxes and Depreciation Amortization USD is rather stable at the moment. The old Wall Street adage "the trend is your friend" seems to be wavering for Luther Burbank Corporation. With a market capitalization of $479.05M and a forward dividend yield of 0.0597, the company has shown a notable net income of $35.95M. However, the company's growth trend seems to be shifting gears as evidenced by its quarterly revenue growth, which has unfortunately dipped to -0.61. This negative shift is further emphasized by the company's high probability of bankruptcy at 71.50%. Despite this, Luther Burbank's book value per share stands strong at 13.62X, suggesting that the company still holds substantial intrinsic value. Investors need to weigh these factors and keep a close eye on Luther Burbank's momentum, as the
current market conditions could signal a pivotal moment for the company's growth trend. The company's performance should be monitored closely in the coming quarters to determine if this is a temporary setback or a more significant shift in Luther Burbank's growth trajectory. .
Luther Burbank has a good chance to finish above $9.58 in 2 months
Despite Luther Burbank's latest total risk alpha standing at -0.79, which suggests a potential for high volatility, there are strong indications that the stock could exceed the $9.58 mark within the next two months. This forecast is based on a thorough analysis of the company's
financial health, market trends, and the overall economic climate. However, investors should remain alert to inherent risks and market fluctuations. Luther Burbank exhibits relatively low volatility, with a skewness of 1.17 and a kurtosis of 2.73. Nonetheless, we recommend that all investors conduct independent investigations into Luther Burbank to ensure that all available information aligns with their expectations regarding its upside potential and future expected returns. Understanding different
market volatility trends often assists investors in timing the market. Proper use of volatility indicators allows traders to measure Luther Burbank's stock risk against market volatility during both bullish and bearish trends.
The heightened level of volatility that accompanies bear markets can directly impact
Luther Burbank's stock price, adding stress for investors as they watch the value of their shares decline. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. Despite the dip in Luther Burbank's stock today, the overall consensus among analysts remains a 'Buy'. With only one estimate, the analyst target price estimated value stands at
$11, which is significantly higher than the current market value of
$9.39. This suggests a possible upside price of $12.33, indicating a potential for substantial growth. The valuation real value of $10.27 further supports this positive outlook. Therefore, investors should consider this temporary dip as an opportunity to buy into Luther Burbank at a discounted price, with the expectation of a strong rebound in the near future. .
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
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 Rifka Kats do not own shares of Luther Burbank. Please refer to our
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