Cash is king in the realm of investing, and Arrowmark Financial Corp's end period cash flow of $395.4K and total cash from operating activities of $15.8M are promising indicators of its
financial health. The company, operating in the financial services sector with a focus on capital markets, boasts a robust operating margin of 0.7747 and a return on assets of 0.0598. This performance is reflected in its earnings per share of $2.01 and a PE ratio of 8.4627, suggesting a relatively undervalued stock. With a market capitalization of $120.9M and a book value of $21.287, Arrowmark's
fundamentals appear solid. On the other hand, Skillful Craftsman Education, despite its quarterly earnings growth of 0.678 and quarterly revenue growth of 0.344, has a concerning total cash from financing activities showing a loss of $15.5M. The analyst overall consensus for Arrowmark is a 'Buy' with a Wall Street target price of $22, a possible upside price of $18.45, and a highest estimated target price of $20.2M. In comparison, Skillful Craftsman Education's lowest estimated target price stands at $0.0. Arrowmark also offers a dividend yield of 0.1058 and a dividend per share of $1.56, adding to its investment appeal. As of the 5th of December, 2023, Arrowmark Financial Corp appears to be a more attractive investment option in the NASDAQ exchange. It appears that Skillful Craftsman may be due for a correction sooner, as its share price has risen by 1.09% today, compared to Arrowmark Financial's 0.53%. As many savvy traders are currently steering clear of the capital markets sector, it is logical to delve deeper into Arrowmark Financial Corp and compare it with Skillful Craftsman and other similar entities. We will examine some of the competitive aspects of both Arrowmark and Skillful.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Arrowmark or DWS is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding Arrowmark Financial dividends
A dividend is the distribution of a portion of Arrowmark Financial earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Arrowmark Financial dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Arrowmark one year expected dividend income is about USD1.35 per share.
At this time, Arrowmark Financial's
Dividend Payout Ratio is fairly stable compared to the past year.
Dividend Paid And Capex Coverage Ratio is likely to rise to 1.05 in 2024, whereas
Dividends Paid is likely to drop slightly above 11.5
M in 2024.
Investing in dividend-paying stocks, such as Arrowmark Financial Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Arrowmark Financial must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Arrowmark Financial. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Arrowmark Financial's Liquidity
Arrowmark Financial
financial leverage refers to using borrowed capital as a funding source to finance Arrowmark Financial Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Arrowmark Financial 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 Arrowmark Financial'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 Arrowmark Financial'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 Arrowmark Financial's total debt and its cash.
Correlation Between Arrowmark and DWS Municipal Income
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Arrowmark Financial together with similar or unrelated positions with a negative correlation. For example, you can also add DWS Municipal to your portfolio. If DWS Municipal is not perfectly correlated to Arrowmark Financial it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Arrowmark Financial, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Arrowmark Financial and DWS Municipal in your portfolio? Please note if you are using this as a pair-trade strategy between Arrowmark Financial and DWS Municipal, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between BANX and KTF for more information.
Breaking it down a bit more
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Lets now check Arrowmark Financial revenue. Based on the latest financial disclosure, Arrowmark Financial Corp reported 7.86
M of revenue. This is 99.93% lower than that of the Capital Markets sector and 99.85% lower than that of the
Financials industry.
The revenue for all United States stocks is 99.92% higher than that of Arrowmark Financial. As for Skillful Craftsman we see revenue of 11.32
M, which is 99.79% lower than that of the Financials
| BANX | 7.86 Million | 0.15 |
| Sector | 5.36 Billion | 99.64 |
| EDTK | 11.32 Million | 0.21 |
As Warren Buffet once said, "Risk comes from not knowing what you're doing." In the case of Arrowmark Financial Corp, the company seems to have a firm grasp on its operations, as evidenced by its positive EBITDA of 7.7M and net income of 5.37M. The company's risk-adjusted performance of 0.0642 and a beta of 0.5 indicate a lower volatility compared to the broader market. Furthermore, Arrowmark's payout ratio of 0.0156 suggests a conservative approach to returning profits to shareholders, which could be a positive sign for long-term investors. However, the company's probability of bankruptcy stands at 65.75%, which is a significant risk factor. On the other hand, Skillful Craftsman Education, with its recent quarterly revenue growth of 0.344, shows promise. However, investors should weigh these factors against Arrowmark's solid five-year return of 7.42% before making a decision. .
Possible January relapse of Arrowmark?
Arrowmark Financial Corp's current Sortino Ratio, a statistical tool used to measure the
risk-adjusted return of an investment asset, has recently increased to 0.05. This slight increase suggests that the company's risk-adjusted performance is not particularly robust, indicating a potential susceptibility to market volatility. Consequently, there is a chance that Arrowmark's stock price may trend downwards in the upcoming weeks. Investors are advised to exercise caution and closely monitor the stock for signs of a potential downturn in January. Arrowmark Financial Corp exhibits relatively low volatility, with a skewness of 1.1 and a kurtosis of 3.04. However, we recommend that all investors independently investigate Arrowmark Financial Corp to ensure that all available information aligns with their expectations about its upside potential and future expected returns. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Arrowmark Financial's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact
Arrowmark Financial's stock price, adding stress to investors as they watch the value of their shares decrease.
This typically compels investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, Arrowmark Financial Corp (BANX) has been on a slow but steady upward trajectory. With a current market valuation of
17.1M, it is slightly undervalued compared to its real value of
9.47M. The
analyst consensus points towards a 'Buy' with three strong buys and one buy. The potential upside price is 18.45, while the downside risk is capped at 15.8. The highest estimated target price by analysts is a staggering
20.2M, indicating a strong potential for growth. However, investors should be cautious as the naive expected forecast value is only 17.12. Despite the slow rise, the data suggests that we can expect a rise in Arrowmark's stock price, making it a worthwhile consideration for investors. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile 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 Vlad Skutelnik do not own shares of Arrowmark Financial Corp. Please refer to our
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