Old Second appears to be slightly risky, given 1 month investment horizon.
Old Second Bancorp maintains Sharpe Ratio (i.e. Efficiency) of 0.076, which implies the firm had 0.076% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Old Second Bancorp, which you can use to evaluate future volatility of the company. Please employ Old Second Bancorp
coefficient of variation of 1702.31,
risk adjusted performance of 0.1061, and
semi deviation of 3.63 to confirm if our risk estimates are consistent with your expectations.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Old Second income statement, its balance sheet, and the statement of cash flows. Potential Old Second investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Old Second investors may use each financial statement separately, they are all related. The changes in Old Second's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Old Second's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Old Second
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Old Second performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Old Second shares is the value that is considered the true value of the share. If
the intrinsic value of Old is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Old Second. Please read more on our
fundamental analysis page.
How effective is Old Second in utilizing its assets?
Old Second Bancorp reports assets on its Balance Sheet. It represents the amount of Old resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Old Second aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Regional Banks space. To get a better handle on how balance sheet or income statements item affect Old volatility, please check the breakdown of all its
fundamentals.
Are Old Second Earnings Expected to grow?
The
future earnings power of Old Second involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Old Second factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Old Second
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Old
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Old Second earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Old Second dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Old one year expected dividend income is about USD0.13 per share.
The current year's
Dividends Paid is expected to grow to about (8.5
M). In addition to that,
Dividend Yield is expected to decline to 0.01.
Investing in dividend-paying stocks, such as Old Second Bancorp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Old Second must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Old Second. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Old Second Gross Profit
Old Second Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Old Second previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Old Second Gross Profit growth over the last 10 years. Please check Old Second's
gross profit and other
fundamental indicators for more details.
Breaking down Old Second Further
Many companies such as Old Second have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Old Second is distributed among investors.
Ownership Allocation
Old Second owns a total of twenty-nine million six hundred eighty thousand
outstanding shares. The majority of Old Second Bancorp
outstanding shares are owned by
third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Old Second Bancorp to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Old Second. Please pay attention to any change in the institutional holdings of Old Second Bancorp as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.
| Retail Investors23.49% | Insiders5.27% | Institutions71.24% |
| Retail Investors | 23.49 |
| Insiders | 5.27 |
| Institutions | 71.24 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Old Second has an asset utilization ratio of 5.83 percent. This suggests that the company is making $0.0583 for each dollar of assets. An increasing asset utilization means that Old Second Bancorp is more efficient with each dollar of assets it utilizes for everyday operations.
| Goodwill23 M | Tax Assets11.8 M |
| Goodwill | 22.95 Million | 66.12 |
| Tax Assets | 11.76 Million | 33.88 |
Analysis of Old Second Bancorp
Current maximum drawdown is at 20.32. As of the 23rd of July, Old Second holds the
coefficient of variation of 1702.31,
risk adjusted performance of 0.1061, and
semi deviation of 3.63. Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Old Second, as well as the relationship between them. 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 are able to interpolate and collect nineteen
technical drivers for Old Second Bancorp, which can be compared to its competitors. Please check
Old Second Bancorp coefficient of variation,
maximum drawdown,
skewness, as well as the
relationship between the
information ratio and
downside variance to decide if Old Second Bancorp is priced some-what accurately, providing market reflects its current price of 7.79 per share. Given that Old Second has
jensen alpha of
(0.11), we recommend you to check out Old Second Bancorp's recent market performance to make sure the company can sustain itself at a future point.
Our Final Perspective on Old Second
Whereas some other entities under the banks—regional industry are still a bit expensive, Old Second may offer a potential longer-term growth to investors. To conclude, as of the 23rd of July 2020, we believe that at this point, Old Second is slightly risky with
below average probability of distress within the next 2 years. From a slightly different point of view, the entity appears to be
undervalued. Our final 30 days buy-or-sell advice on the company is
Cautious Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Old Second Bancorp. Please refer to our
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