| TFIN Stock | | | 110.16 5.10 4.85% |
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
Triumph Financial Piotroski F Score and
Triumph Financial Valuation analysis.
To learn how to invest in Triumph Stock, please use our
How to Invest in Triumph Financial guide.
Triumph Financial Company Z Score Analysis
Triumph Financial'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..
| 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.
Based on the company's disclosures, Triumph Financial has a Z Score of 0.0. This is 100.0% lower than that of the Banks sector and about the same as
Financials (which currently averages 0.0) industry. The z score for all United States stocks is 100.0% higher than that of the company.
Triumph Z Score Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Triumph Financial's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Triumph Financial could also be used in its relative valuation, which is a method of valuing Triumph Financial by comparing valuation metrics of similar companies.
Triumph Financial is currently under evaluation in z score category among its peers.
Triumph Fundamentals
About Triumph Financial Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Triumph Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Triumph Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Triumph Financial based on its fundamental data. In general, a quantitative approach, as applied to this company, 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 Triumph Financial
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 Triumph Financial 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 Triumph Financial will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Triumph Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Triumph Financial 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 Triumph Financial - 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 Triumph Financial to buy it.
The correlation of Triumph Financial 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 Triumph Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Triumph Financial 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 Triumph Financial 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.
When determining whether Triumph Financial is a good investment, qualitative aspects like company
management, corporate governance, and ethical practices play a significant role. A
comparison with peer companies also provides context and helps to understand if Triumph Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Triumph Financial Stock.
Highlighted below are key reports to facilitate an investment decision about Triumph Financial Stock: Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost
the valuation of Triumph Financial. If investors know Triumph will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Triumph Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Triumph Financial is measured differently than its book value, which is the value of Triumph that is recorded on the company's balance sheet. Investors also form their own opinion of Triumph Financial's value that differs from its market value or its book value, called intrinsic value, which is Triumph Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Triumph Financial's market value can be influenced by many factors that don't directly affect Triumph Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Triumph Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine
if Triumph Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Triumph Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.