Stifel Story

<div class='circular--portrait' style='background:#FF0F00;color: #FFFFF0;font-size:4em;'>SF</div>
SF -- USA Stock  

USD 47.65  1.65  3.35%

It looks like Western Union will be up for a correction faster as its share price went up 1.27% today to Stifel Financial's 3.33%As many rational traders are trying to avoid financial services space, it makes sense to digest Stifel Financial a little further and understand how it stands against Western Union and other similar entities. We are going to discuss some of the competitive aspects of both Stifel and Western.
Published over a month ago
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Will Western Union shareholders switch to Stifel (NYSE:SF)?
By analyzing existing technical and fundamental indicators between Stifel Financial and Western, 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 Western with a short position in Stifel Financial. 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. Stifel Financial has an asset utilization ratio of 25.81 percent. This indicates that the company is making $0.26 for each dollar of assets. An increasing asset utilization means that Stifel Financial 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 companies, such as Stifel or Legg Mason is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Stifel Financial dividends

A dividend is the distribution of a portion of Stifel Financial 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. Stifel Financial 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. Stifel one year expected dividend income is about $0.41 per share.
Stifel Financial Dividends per Basic Common Share is projected to slightly decrease based on the last few years of reporting. The past year's Dividends per Basic Common Share was at 0.0115.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-416.7 K-449.6 K
Dividend Yield 0.00345  0.004421 
Dividends per Basic Common Share 0.0115  0.0147 
Investing in dividend-paying stocks, such as Stifel Financial is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Stifel Financial 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 Stifel Financial. 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.

How important is Stifel Financial's Liquidity

Stifel Financial financial leverage refers to using borrowed capital as a funding source to finance Stifel Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Stifel Financial 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 Stifel Financial's total debt and its cash.

Correlation Between Stifel and Legg Mason

In general, 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 Stifel Financial together with similar or unrelated positions with a negative correlation. For example, you can also add Legg Mason to your portfolio. If Legg Mason is not perfectly correlated to Stifel Financial 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 Stifel Financial for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between SF and LM for more information.

What is driving Stifel Financial Investor Appetite?

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 Stifel Financial revenue. Based on the latest financial disclosure, Stifel Financial reported 3.44 B of revenue. This is 69.31% lower than that of the Financial Services sector and 33.58% lower than that of the Capital Markets industry. The revenue for all United States stocks is 63.54% higher than that of Stifel Financial. As for Western Union we see revenue of 5.15 B, which is about the same for the Capital Markets average (which is currently at 5.18 B)

Stifel3.44 Billion
Sector5.18 Billion
Western5.15 Billion
3.4 B
5.2 B
5.2 B

Our perspective of the latest Stifel Financial dip

The risk adjusted performance is down to 0.16 as of today. As of the 29th of July, Stifel Financial has the Risk Adjusted Performance of 0.1554, coefficient of variation of 1117.92, and Semi Deviation of 3.61. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Stifel Financial, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Stifel Financial, which can be compared to its competition. Please validate Stifel Financial coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Stifel Financial is priced more or less accurately, providing market reflects its prevalent price of 46.72 per share. Given that Stifel Financial has jensen alpha of 0.3308, we advise you to double-check Stifel Financial's current market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Although few other entities within the capital markets industry are still a little expensive, even after the recent corrections, Stifel Financial may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither trade nor drop any shares of Stifel Financial at this time. The Stifel Financial risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Stifel Financial.

About Contributor

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 Achuva Shats do not own shares of Stifel Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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