Should I hold on to my BBX Capital (NYQ:BBX) position?

BBX Capital is scheduled to announce its earnings today. The upcoming quarterly report is expected on the 6th of November 2020. BBX Capital symbol was renamed from BBX to BVH on 1st of October 2020. BBX Capital PPandE Turnover is fairly stable at the moment as compared to the past year. BBX Capital reported PPandE Turnover of 6.62 in 2019. Cash and Equivalents Turnover is likely to rise to 1.95 in 2020, whereas Average Equity is likely to drop slightly above 475.3 M in 2020. As many baby boomers are still indifferent towards consumer cyclical space, it makes sense to break down BBX Capital as a unique choice for millenniums. Let's try to inspect if BBX Capital shares are reasonably priced going into December.
Published over a year ago
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Reviewed by Rifka Kats

BBX Capital has 879.94 M in debt with debt to equity (D/E) ratio of 1.55, which is OK given its current industry classification. The entity has a current ratio of 24.21, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due.

How important is Bluegreen Vacations's Liquidity

Bluegreen Vacations financial leverage refers to using borrowed capital as a funding source to finance Bluegreen Vacations Holding ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bluegreen Vacations 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 Bluegreen Vacations' 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 Bluegreen Vacations' 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 Bluegreen Vacations's total debt and its cash.

Breaking down Bluegreen Vacations Further

The firm reported the last year's revenue of 715.84 M. Reported Net Loss for the year was (36.27 M) with profit before taxes, overhead, and interest of 635.65 M.

Liabilities Breakdown

23.3 M
Deposit Liabilities
69.3 M
Total Liabilities
Deposit Liabilities23.31 Million
Total Liabilities69.33 Million
Tax Liabilities76.68 Million

BBX Capital may start a reversion in December

Current variance is at 19.21. BBX Capital exhibits very low volatility with skewness of -1.64 and kurtosis of 7.71. However, we advise investors to further study BBX Capital technical indicators to make sure all market info is available and is reliable.

Our Takeaway on BBX Capital Investment

While many of the other players under the resorts & casinos industry are still a bit expensive, BBX Capital may offer a potential longer-term growth to investors. Taking everything into account, as of the 1st of November 2020, our research shows that BBX Capital is a rather somewhat reliable investment opportunity with a below average odds of distress in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our actual 30 days Buy-Hold-Sell recommendation on the company is Hold.

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Editorial Staff

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 Bluegreen Vacations Holding. Please refer to our Terms of Use for any information regarding our disclosure principles.

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