Southstate Corp has roughly 6.48
B in cash with 608.85
M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 92.76.
Volatility is a rate at which the price of South State or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of South State may increase or decrease. In other words, similar to South's
beta indicator, it measures the risk of South State and helps estimate the fluctuations that may happen in a short period of time. So if prices of South State fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our
technical analysis page.
How important is South State's Liquidity
South State
financial leverage refers to using borrowed capital as a funding source to finance South State Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. South State 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 South State's 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 South State's 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 South State's total debt and its cash.
South State Gross Profit
South State Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing South State 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 South State Gross Profit growth over the last 10 years. Please check South State's
gross profit and other
fundamental indicators for more details.
South State Volatility Drivers
South State unsystematic risk is unique to South State Corp and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in South State you can also buy
HMN Financial. You can also mitigate this risk by investing in the financials sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing South State important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in South State income statement and balance sheet. Here are more
details about South volatility.
Click cells to compare fundamentals
Another Deeper Perspective
The current indifference towards the small price fluctuations of Southstate Corp created some momentum for investors as it was traded today as low as
82.41 and as high as
84.83 per share. The company directors and management did not add any value to Southstate Corp investors in
December. However, most investors can still diversify their portfolios with Southstate Corp to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.1. The current volatility is consistent with the ongoing market swings in
December 2021 as well as with Southstate Corp unsystematic, company-specific events.
How will Southstate investors react to the next slip?
Current Market Risk Adjusted Performance is up to 0.08. Price may slip again. Southstate Corp currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.2. However, we advise investors to further question Southstate Corp expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Southstate Corp'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 Southstate Corp'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.
Southstate Corp Implied Volatility
Southstate Corp's implied volatility exposes the market's sentiment of Southstate Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Southstate Corp's 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 Southstate Corp stock will not fluctuate a lot when Southstate Corp's options are near their expiration.
Our Bottom Line On Southstate Corp
Whereas other entities within the banks—regional industry are still a little expensive, even after the recent corrections, Southstate Corp may offer a potential longer-term growth to investors. While some short-term oriented investors may not share our view, we believe it may be a good time to buy new shares of Southstate.
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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 Ellen Johnson do not own shares of South State Corp. Please refer to our
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