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Should you keep an eye on Westamerica Bancorporation (NASDAQ:WABC) management before February?
 | By Raphi Shpitalnik | Macroaxis Story |
It appears Westamerica Bancorporation will continue to recover much faster as its share price surged up 0.07% today. The company current daily volatility is 2.27 percent, with a beta of 1.2 and an alpha of 0.0 over DOW. As many millenniums are trying to avoid westamerica bancorporation, it makes sense to go over Westamerica Bancorporation a little further and try to understand its current market patterns. Why are we still confident in our projection for a recovery.
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Reviewed by Rifka Kats
Westamerica Bancorporation currently holds roughly 398.96 M in cash with 112.28 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 14.85. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Westamerica Bancorporation has an asset utilization ratio of 3.87 percent. This suggests that the company is making $0.0387 for each dollar of assets. An increasing asset utilization means that Westamerica Bancorporation is more efficient with each dollar of assets it utilizes for everyday operations.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Westamerica Bancorporation. Your research has to be compared to or analyzed against Westamerica Bancorporation's peers to derive any actionable benefits. When done correctly, Westamerica Bancorporation's 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 Westamerica Bancorporation.
Investing in Westamerica Bancorporation, 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 Westamerica Bancorporation 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 Westamerica Bancorporation's 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.
How important is Westamerica Bancorporation's Liquidity
Westamerica Bancorporation financial leverage refers to using borrowed capital as a funding source to finance Westamerica Bancorporation ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Westamerica Bancorporation 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 Westamerica Bancorporation'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 Westamerica Bancorporation'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 Westamerica Bancorporation's total debt and its cash.
Westamerica Bancorporation Gross Profit
Westamerica Bancorporation Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Westamerica Bancorporation 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 Westamerica Bancorporation Gross Profit growth over the last 10 years. Please check Westamerica Bancorporation's gross profit and other fundamental indicators for more details.
Westamerica Bancorporation Correlation with Peers
Investors in Westamerica can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Westamerica Bancorporation. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Westamerica Bancorporation and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Westamerica 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 Westamerica for more details
Breaking down Westamerica Bancorporation Further
We consider Westamerica Bancorporation very steady. Westamerica Bancorporation shows Sharpe Ratio of 0.0779, which attests that the company had 0.0779% of return per unit of risk over the last month. Our standpoint towards determining 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 Westamerica Bancorporation, which you can use to evaluate future volatility of the company. Please check out Westamerica Bancorporation Market Risk Adjusted Performance of 0.1276, mean deviation of 1.42, and Downside Deviation of 1.78 to validate if the risk estimate we provide is consistent with the expected return of 0.18%.
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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 Westamerica Bancorporation. Please refer to our Terms of Use for any information regarding our disclosure principles.