Stock Story

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SYBT -- USA Stock  

USD 42.15  0.99  2.29%

As many baby boomers are still indifferent towards financial services space, it makes sense to review Stock Yards Bancorp. We will try to explain if it is still possible for Stock Yards to generate above-average margins. Is the firm valuation justified? I am going to cover Stock Yards Bancorp perspective on valuation to give you a better outlook on taking a position in it.
Published over a month ago
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Will Stock Yards (NASDAQ:SYBT) continue to add value to private investors?
Stock Yards Bancorp currently holds 134.55 M in liabilities with Debt to Equity (D/E) ratio of 8.83, indicating Stock Yards may have difficulties to generate enough cash to satisfy its financial obligations. Stock Yards Bancorp recommendation module can be used to check and cross-verify current trade recommendation provided by analysts inspecting the firm's potential to grow using all of fundamental, technical, data market data available at the time.
We determine the current worth of Stock Yards 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 Stock Yards Bancorp based exclusively on its fundamental and basic technical indicators. By analyzing Stock Yards'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 Stock Yards'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 Stock Yards. We calculate exposure to Stock Yards's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Stock Yards's related companies.

Stock Yards Bancorp Investment Alerts

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

Stock Yards Valuation Ratios as Compared to Competition

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

How Stock utilizes its cash?

To perform a cash flow analysis of Stock Yards, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Stock Yards is receiving and how much cash it distributes out in a given period. The Stock Yards cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. Stock Yards Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Stock Yards reported Net Cash Flow from Operations of 58.44 Million in 2019

A Deeper Perspective On Stock Yards

The small drop in market price for the last few months created some momentum for private investors as it was traded today as low as 37.91 and as high as 38.74 per share. The company executives did not add much value to Stock Yards Bancorp investors in September. However, diversifying your holdings with Stock Yards Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 2.04. The current volatility is consistent with the ongoing market swings in September 2020 as well as with Stock Yards Bancorp unsystematic, company-specific events.
 2019 2020 (projected)
Share Based Compensation1.31 M1.06 M
Net Cash Flow from Operations58.44 M50.9 M

Margins Breakdown

Stock profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Stock Yards itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Stock Yards profit margins.
EBITDA Margin0.54
Gross Margin0.89
Profit Margin28.3


Stock Yards Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Stock Yards Net Income Per Employee is increasing over the last 8 years. Additionally, Stock Yards Average Assets is increasing over the last 8 years. The newest value of Stock Yards Average Assets is 1,978,374,152. Stock Yards Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Stock Yards Net Income Per Employee is comparatively stable at the moment. Additionally, Stock Yards Average Assets is comparatively stable at the moment.

Stock showing indication of lower volatility

Newest Information Ratio is up to -0.1. Price may drop again. Stock Yards Bancorp exhibits very low volatility with skewness of -0.41 and kurtosis of 0.81. However, we advise investors to further study Stock Yards Bancorp technical indicators to make sure all market info is available and is reliable.

Whereas other companies under the banks?regional industry are still a bit expensive, Stock Yards may offer a potential longer-term growth to private investors. With a relatively neutral outlook on the newest economy, it is better to hold off any trading of Stock as the current risk-reward utility is not appealing enough. 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 Stock Yards.

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 Raphi Shpitalnik do not own shares of Stock Yards Bancorp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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