Smartfinancial Stock Story

SMBK -  USA Stock  

USD 26.98  0.98  3.77%

As many rational traders are trying to avoid financial services space, it makes sense to examine Smartfinancial a little further and understand how it stands against US Bancorp and other similar entities. We are going to concentrate on some of the competitive aspects of both Smartfinancial and US Bancorp.
Published over a month ago
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Should we be purchasing US Bancorp or Smartfinancial?
By analyzing existing fundamental drivers between Smartfinancial and US Bancorp, 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 US Bancorp with a short position in Smartfinancial. 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. Smartfinancial has an asset utilization ratio of 12.01 percent. This signifies that the company is making $0.12 for each dollar of assets. An increasing asset utilization means that Smartfinancial is more efficient with each dollar of assets it utilizes for everyday operations.

How important is Smartfinancial's Liquidity

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

How Smartfinancial utilizes its cash?

To perform a cash flow analysis of Smartfinancial, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Smartfinancial is receiving and how much cash it distributes out in a given period. The Smartfinancial cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Smartfinancial Net Cash Flow from Operations is increasing as compared to previous years. The last year's value of Net Cash Flow from Operations was reported at 29.07 Million

Breaking down Smartfinancial Further

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 Smartfinancial revenue. Based on the latest financial disclosure, Smartfinancial reported 122.94 M of revenue. This is 98.9% lower than that of the Financial Services sector and significantly higher than that of the Banks—Regional industry. The revenue for all United States stocks is 98.7% higher than that of Smartfinancial. As for US Bancorp we see revenue of 22.64 B, which is much higher than that of the Banks—Regional

USB
22.6 B
SMBK122.94 Million0.54
Sector0.00.0
USB22.64 Billion99.46

Is Smartfinancial showing sign of lower volatility?

Recent expected short fall is at -0.94. Smartfinancial has relatively low volatility with skewness of -0.23 and kurtosis of 0.65. However, we advise all investors to independently investigate Smartfinancial 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 Smartfinancial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Smartfinancial's 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.

The Current Takeaway on Smartfinancial Investment

Although some firms in the banks—regional industry are either recovering or due for a correction, Smartfinancial may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 18th of October 2021, we believe that Smartfinancial is currently undervalued with below average chance of distress in the next two years. Our primary 90 days 'Buy-vs-Sell' recommendation on the firm is Strong Buy.

Editorial Staff

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 Vlad Skutelnik do not own shares of Smartfinancial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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