| FNRN Stock | | | USD 10.00 0.01 0.10% |
Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Check out
Investing Opportunities to better understand how to build diversified portfolios, which includes a position in First Northern Community. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as
signals in metropolitan statistical area.
First Northern Community OTC Stock Z Score Analysis
First Northern's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Current First Northern Z Score | | | | 12.6 |
Most of First Northern's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, First Northern Community is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
| First Factor | = | 1.2 * ( | Working Capital | / | Total Assets ) |
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| Second Factor | = | 1.4 * ( | Retained Earnings | / | Total Assets ) |
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| Thrid Factor | = | 3.3 * ( | EBITAD | / | Total Assets ) |
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| Fouth Factor | = | 0.6 * ( | Market Value of Equity | / | Total Liabilities ) |
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| Fifth Factor | = | 0.99 * ( | Revenue | / | Total Assets ) |
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To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.
According to the company's disclosures, First Northern Community has a Z Score of 12.6. This is much higher than that of the Banks sector and significantly higher than that of the
Financials industry. The z score for all United States stocks is 44.5% lower than that of the firm.
First Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses First Northern's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the otc stocks which would be a good addition to a portfolio. Peer analysis of First Northern could also be used in its relative valuation, which is a method of valuing First Northern by comparing valuation metrics of similar companies.
First Northern is currently under evaluation in z score category among its peers.
First Northern ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First Northern's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First Northern's managers, analysts, and investors.
First Fundamentals
About First Northern Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze First Northern Community's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First Northern using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of First Northern Community based on its fundamental data. In general, a quantitative approach, as applied to this otc stock, focuses on analyzing
financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our
fundamental analysis page.
Pair Trading with First Northern
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Northern position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Northern will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to First Northern could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Northern when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Northern - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Northern Community to buy it.
The correlation of First Northern is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Northern moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Northern Community moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Northern can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Other Information on Investing in First OTC Stock
First Northern financial ratios help investors to determine whether First OTC Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in First with respect to the benefits of owning First Northern security.