RBB Bancorp Story

RBB -- USA Stock

USD 19.22 0.71 3.56%

Macroaxis Story

As many of us are excited about financial services space, it is fair to go over RBB Bancorp. We will evaluate why recent RBB Bancorp price moves suggest a bounce in February. Is the firm current valuation justified for 2021? Here i will cover my perspective on valuation to give RBB Bancorp investors a better outlook on taking a position in the stock.

Published over a month ago

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Is RBB Bancorp well positioned for February economic uncertainties?

This firm has 308.53 M in debt with debt to equity (D/E) ratio of 0.27, which may show that RBB Bancorp is not taking advantage of profits from borrowing. The company has a current ratio of 0.13, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. RBB Bancorp is FAIRLY VALUED at 18.23 per share with modest projections ahead.

We determine the current worth of RBB Bancorp 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 RBB Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing RBB Bancorp'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 RBB Bancorp'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 RBB Bancorp. We calculate exposure to RBB Bancorp's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to RBB Bancorp's related companies.

RBB Bancorp Investment Alerts

RBB Bancorp 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 RBB Bancorp performance across your portfolios.Please check all investment alerts for RBB Bancorp

RBB Bancorp Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare RBB Bancorp value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across RBB Bancorp competition to find correlations between indicators driving the intrinsic value of RBB Bancorp.

How RBB Bancorp utilizes its cash?

To perform a cash flow analysis of RBB Bancorp, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash RBB Bancorp is receiving and how much cash it distributes out in a given period. The RBB Bancorp cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

RBB Bancorp Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 428.82 Million

RBB Bancorp exotic insider transaction detected

Legal trades by RBB Bancorp 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:

RBB Bancorp insider trading alert for general transaction of option (right to buy) by KoYen Lin, the corporate stakeholder, on 19th of February 2021. This event was filed by Rbb Bancorp with SEC on 2021-02-19. 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.

Breaking down RBB Bancorp Further

The current price rise of RBB Bancorp created some momentum for investors as it was traded today as low as 17.45 and as high as 17.82 per share. The company directors and management may have good odds in positioning the entity resources to exploit market volatility in February. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.85. The current volatility is consistent with the ongoing market swings in December 2020 as well as with RBB Bancorp unsystematic, company-specific events.

	2020	2021 (projected)
Net Income	35.29 M	28.63 M
Direct Expenses	15.01 M	12.25 M

Net Income Direct Expenses

Margins Breakdown

RBB Bancorp profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or RBB Bancorp itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of RBB Bancorp profit margins.

	Operating Margin	37.69
	EBITDA Margin	39.02
	Profit Margin	22.8

RBB Bancorp Calculated Tax Rate is somewhat stable at the moment. Also, RBB Bancorp Interest Coverage is somewhat stable at the moment.

Will RBB Bancorp price slip impact its balance sheet?

Variance is down to 7.63. It may suggest a possible volatility slip. RBB Bancorp currently demonstrates below-verage downside deviation. It has Information Ratio of 0.16 and Jensen Alpha of 0.6. However, we do advice investors to further question RBB Bancorp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

The Bottom Line

Whereas few other entities within the banks?regional industry are still a little expensive, even after the recent corrections, RBB Bancorp may offer a potential longer-term growth to investors. In closing, as of the 25th of January 2021, our latest 30 days buy-hold-sell advice on the company is Strong Buy. We believe RBB Bancorp is currently fairly valued with below average chance of bankruptcy for the next two years.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of RBB Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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