Servisfirst Bancs currently holds roughly 234.8
M in cash with 269.28
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.33.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Servisfirst Bancs has an asset utilization ratio of 7.46 percent. This connotes that the company is making $0.0746 for each dollar of assets. An increasing asset utilization means that Servisfirst Bancs is more efficient with each dollar of assets it utilizes for everyday operations.
Investing in ServisFirst Bancshares, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding ServisFirst Bancshares along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of ServisFirst Bancshares' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as ServisFirst Bancshares. Your research has to be compared to or analyzed against ServisFirst Bancshares' peers to derive any actionable benefits. When done correctly, ServisFirst Bancshares' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in ServisFirst Bancshares.
How important is ServisFirst Bancshares's Liquidity
ServisFirst Bancshares
financial leverage refers to using borrowed capital as a funding source to finance ServisFirst Bancshares ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ServisFirst Bancshares 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 ServisFirst Bancshares' 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 ServisFirst Bancshares' 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 ServisFirst Bancshares's total debt and its cash.
ServisFirst Bancshares Gross Profit
ServisFirst Bancshares Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ServisFirst Bancshares 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 ServisFirst Bancshares Gross Profit growth over the last 10 years. Please check ServisFirst Bancshares'
gross profit and other
fundamental indicators for more details.
ServisFirst Bancshares Correlation with Peers
Investors in ServisFirst can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in ServisFirst Bancshares. Diversification will allow for the same portfolio return with reduced risk. The correlation table of ServisFirst Bancshares and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities ServisFirst is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of ServisFirst for more details
Breaking down ServisFirst Bancshares Further
We consider Servisfirst Bancs very steady.
Servisfirst Bancs owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0469, which indicates the firm had 0.0469% of return per unit of risk over the last 3 months. Our standpoint towards measuring 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 Servisfirst Bancs, which you can use to evaluate the future volatility of the company. Please validate Servisfirst Bancs Semi Deviation of 1.54,
risk adjusted performance of 0.044, and Coefficient Of Variation of 2113.22 to confirm if the risk estimate we provide is consistent with the expected return of 0.0759%.
Possible February throwback of Servisfirst?
Maximum drawdown is down to 8.84. It may connote a possible volatility fall. Servisfirst Bancs has relatively low volatility with skewness of -0.19 and kurtosis of 1.8. However, we advise all investors to independently investigate Servisfirst Bancs to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Servisfirst Bancs' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Servisfirst Bancs' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Servisfirst Bancs Implied Volatility
Servisfirst Bancs' implied volatility exposes the market's sentiment of Servisfirst Bancs stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Servisfirst Bancs' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Servisfirst Bancs stock will not fluctuate a lot when Servisfirst Bancs' options are near their expiration.
Our Bottom Line On Servisfirst Bancs
While some firms within the banks—regional industry are still a little expensive, even after the recent corrections, Servisfirst Bancs may offer a potential longer-term growth to retail investors. While some short-term oriented retail investors may not share our view, we believe it may be a good time to take over new shares of Servisfirst.
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Gabriel Shpitalnik is a Member of Macroaxis 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 ServisFirst Bancshares. Please refer to our
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