Despite the market uptrend, Arrowmark Financial Corp (USA Stocks:BANX) has been defying the odds, presenting an undervalued investment opportunity. With a Jensen Alpha of 0.1153
, this asset management company has shown potential to generate excess returns, indicating a strong risk-adjusted performance. The company's Sortino Ratio, a measure of risk-adjusted return, stands at 0.1052
, suggesting that the firm has been effective in delivering returns while managing downside risk. The stock's recent price was $17.26
, a slight decrease from its opening price of $17.44
. However, with a potential upside of 2.11%
, there's room for growth. Despite the recent price change, the company's market risk adjusted performance is 0.2851
, indicating that the stock has been performing well relative to its market risk. This suggests that Arrowmark Financial Corp may be a promising investment for those looking to capitalize on undervalued stocks.
The asset utilization indicator refers to the revenue generated for every dollar of assets a company currently holds. Arrowmark Financial has an asset utilization ratio of 3.77 percent. This implies that the company generates $0.0377 for each dollar of assets. An increasing asset utilization ratio indicates that Arrowmark Financial Corp is becoming more efficient with each dollar of assets it uses for daily operations.
The company has a Profit Margin (PM) of 0.56 percent, which means that even a minor decline in its revenue could wipe out profits, resulting in a net loss. This is significantly below average. Similarly, it has an Operating Margin (OM) of 0.77 percent, suggesting that for every 100 dollars of sales, it generates a net operating income of $0.77.
The successful prediction of Arrowmark Financial stock price
could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published stock prices
of traded companies, such as Arrowmark Financial Corp, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at the intrinsic value
of Arrowmark Financial based on Arrowmark Financial hews, social hype, general headline patterns, and widely used predictive technical indicators
. We also calculate exposure to Arrowmark Financial's market risk
, different technical
and fundamental indicators
, relevant financial multiples and ratios, and then comparing
them to Arrowmark Financial's related companies.
Use Technical Analysis to project Arrowmark expected Price
Arrowmark Financial technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of Arrowmark Financial technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of Arrowmark Financial trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions. More Info...
Breaking it down a bit more
This firm reported the previous year's revenue of 7.86 M
. Net Income was 5.37 M
with profit before overhead, payroll, taxes, and interest of 21.53 M
. "Buy low, sell high" is a common adage in the world of finance, and it seems to apply perfectly to Arrowmark Financial Corp (BANX). Despite the market's uptrend, BANX has been defying the trend, presenting a potentially undervalued investment opportunity. With a Price to Earnings ratio of 14.79X, the stock is trading at a discount compared to its earnings per share of 2.01X.
The company's strong financial health
is evident in its EBITDA of $7.7 million
and a total asset base of $208.5 million
. Furthermore, the company's low debt-to-equity ratio of 0.35% and a current ratio of 3.11X indicate a strong balance sheet. However, investors should be aware of the company's high probability of bankruptcy at 65.68%. Despite this, the company's strong fundamentals
and undervalued status make it an attractive investment opportunity. .
Analysis of Arrowmark Financial Corp
In our most recent analysis of Arrowmark Financial Corp, it's important to note that the stock's kurtosis has decreased to 3.66 as of today. This suggests a reduction in the stock's tail risk, indicating a return distribution that is closer to normal. While this decrease in kurtosis could potentially signal less extreme price fluctuations, investors should continue to monitor other market indicators and the company's fundamentals
to make informed trading decisions. As of November 22nd, Arrowmark Financial displays a Mean Deviation of 0.8598, a downside deviation of 0.9943, and a Risk Adjusted Performance of 0.0762. The technical analysis
of Arrowmark Financial Corp provides a methodology to utilize historical prices and volume patterns to predict a pattern that approximates the direction of the company's future prices. In other words, this information can be used to determine if the company will indeed mirror its model of historical prices and volume momentum, or if the prices will eventually revert. We were able to interpolate nineteen technical drivers for Arrowmark Financial Corp, which can be compared to its competitors
. Please verify Arrowmark Financial Corp's standard deviation, maximum drawdown, as well as the relationship between the Maximum Drawdown and expected shortfall to decide if Arrowmark Financial Corp is priced correctly, given that the market reflects its regular price of 17.26 per share.
Considering that Arrowmark Financial has a Jensen Alpha of 0.1153, we recommend you to validate Arrowmark Financial Corp's current market performance to ensure the company can sustain itself in the future. In conclusion, despite the recent slide, Arrowmark Financial Corp (BANX) still holds potential for investors. The analyst overall consensus indicates a 'Buy' with three strong buys and one buy. The valuation hype value stands at 17.26
, which is closely aligned with the naive expected forecast value of 17.43
. The possible upside price of 18.7 offers a promising return, albeit with a potential downside price of 16.15. However, the valuation real value of 9.68 suggests a need for caution. The fiscal year-end in December could bring further clarity to the stock's performance. Therefore, investors should keep a close eye on the stock's movement, especially considering the analyst's highest estimated target price of a whopping 20.2M
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