| 2013 | 2014 | 2015 | 2018 | 2019 (projected) | ETRADE Financial Interest Expense | 114,000,000 | 113,000,000 | 65,000,000 | 58,500,000 | 88,457,965 | ETRADE Financial Gross Profit | 1,723,000,000 | 1,814,000,000 | 1,428,000,000 | 1,285,200,000 | 2,720,000,000 |
ETRADE Financial good news are not so good
 | By Vlad Skutelnik | Macroaxis Story |
This story will go over ETRADE Financial. I will analyze why ETRADE Financial investors may still consider a stake in the business. ETRADE Financial moves indifferently to market moves. The returns on investing in ETRADE Financial and the market returns of the last few months appear uncorrelated. The appearance of strong basic indicators of the company suggests short term price swing for investors of the company. ETRADE Financial shows prevailing Real Value of $43.385 per share. The current price of the firm is $50.52. At this time the firm appears to be overvalued. Macroaxis computes value of ETRADE Financial from evaluating the firm fundamentals such as Profit Margin of 35.55%, Return On Asset of 1.64% and Shares Outstanding of 246.43M as well as inspecting its technical indicators and Probability Of Bankruptcy. In general, we advise to go long with undervalued instruments and to sell out overvalued instruments since at some point future time assets prices and their ongoing real values will submerge.
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Reviewed by Gabriel Shpitalnik
This firm average rating is Buy from 11 analysts. As of 02 of March ETRADE Financial shows Mean Deviation of 1.29, Downside Deviation of 1.45 and Market Risk Adjusted Performance of (3.46). ETRADE Financial technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm future prices. In plain English you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum or the prices will eventually revert. We found nineteen technical drivers for ETRADE Financial Corporation which can be compared to its rivals. Please confirm ETRADE Financial Value At Risk, and the relationship between Jensen Alpha and Semi Variance to decide if ETRADE Financial is priced fairly providing market reflects its regular price of 50.52 per share. Given that ETRADE Financial has Jensen Alpha of 0.3403, we urge you verify ETRADE Financial Corporation prevailing market performance to make sure the company can sustain itself at some point future time.
How important is ETRADE Financial's Liquidity
ETRADE Financial financial leverage refers to using borrowed capital as a funding source to finance ETRADE Financial LLC ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. ETRADE 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 ETRADE 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 ETRADE 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 ETRADE Financial's total debt and its cash.
What is driving ETRADE Financial Investor Appetite?
The latest increase in of ETRADE Financial short term price appreciation could raise concerns from investors as the firm closed today at a share price of 49.23 on 3945800 in volume. The company executives have been quite successful with maneuvering the fund at opportune times to take advantage of all market conditions in February. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.6981. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. ETRADE Financial preserves 2.02x of price to book. ETRADE Financial is trading at 50.52. This is 2.31 percent increase. Today highest was 50.59. ETRADE Financial Earnings before Tax is increasing over the last 5 years. Also, ETRADE Financial Free Cash Flow is somewhat stable at the moment.
To sum up, our final buy-hold-sell recommendation on the company is Cautious Hold. We believe ETRADE Financial is overvalued with low chance of distress for the next two years.
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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 ETRADE Financial LLC. Please refer to our Terms of Use for any information regarding our disclosure principles.