Cadence Bancorp Return On Equity vs. Profit Margin

CADE Stock  USD 38.88  0.91  2.40%   
Considering Cadence Bancorp's profitability and operating efficiency indicators, Cadence Bancorp's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Cadence Bancorp's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.10493817
Current Value
0.11
Quarterly Volatility
0.0276931
 
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At present, Cadence Bancorp's EV To Sales is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Sales Ratio is expected to grow to 0.51, whereas Sales General And Administrative To Revenue is forecasted to decline to 0.32. At present, Cadence Bancorp's Interest Income is projected to increase significantly based on the last few years of reporting. The current year's Change To Netincome is expected to grow to about 259.8 M, whereas Operating Income is forecasted to decline to about 91.1 M.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin1.091.14
Sufficiently Down
Slightly volatile
Net Profit Margin0.460.4391
Sufficiently Up
Slightly volatile
Operating Profit Margin0.07380.0776
Notably Down
Slightly volatile
Return On Assets0.01030.0111
Significantly Down
Slightly volatile
Return On Equity0.110.1049
Sufficiently Up
Slightly volatile
For Cadence Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Cadence Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Cadence Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Cadence Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Cadence Bancorp over time as well as its relative position and ranking within its peers.
  
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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 Cadence Bancorp. If investors know Cadence 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 Cadence Bancorp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.471
Dividend Share
0.98
Earnings Share
0.63
Revenue Per Share
6.963
Quarterly Revenue Growth
0.128
The market value of Cadence Bancorp is measured differently than its book value, which is the value of Cadence that is recorded on the company's balance sheet. Investors also form their own opinion of Cadence Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Cadence Bancorp'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 Cadence Bancorp's market value can be influenced by many factors that don't directly affect Cadence Bancorp'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 Cadence Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Cadence Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Cadence Bancorp'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.

Cadence Bancorp Profit Margin vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Cadence Bancorp's current stock value. Our valuation model uses many indicators to compare Cadence Bancorp value to that of its competitors to determine the firm's financial worth.
Cadence Bancorp is rated below average in return on equity category among its peers. It is number one stock in profit margin category among its peers fabricating about  20.05  of Profit Margin per Return On Equity. At present, Cadence Bancorp's Return On Equity is projected to increase slightly based on the last few years of reporting. Comparative valuation analysis is a catch-all technique that is used if you cannot value Cadence Bancorp by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Cadence Profit Margin vs. Return On Equity

Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Cadence Bancorp

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0255
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Cadence Bancorp

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.51 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Cadence Profit Margin Comparison

Cadence Bancorp is currently under evaluation in profit margin category among its peers.

Cadence Bancorp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Cadence Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Cadence Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Cadence Bancorp's change in net profit over the period of time. It can combine multiple indicators of Cadence Bancorp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-761.8 M-723.7 M
Operating Income95.9 M91.1 M
Net Income3.7 M3.5 M
Income Tax Expense-4.6 M-4.4 M
Income Before Tax-910 K-864.5 K
Total Other Income Expense Net-96.8 M-101.6 M
Net Income From Continuing Ops3.7 M3.5 M
Net Income Applicable To Common Shares521.8 M547.9 M
Net Interest Income1.4 B735.7 M
Interest Income2.3 B2.4 B
Change To Netincome156.4 M259.8 M
Net Income Per Share 2.97  3.12 
Income Quality 162.07  170.17 
Net Loss(595.94)(566.14)

Cadence Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Cadence Bancorp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Cadence Bancorp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Cadence Bancorp's important profitability drivers and their relationship over time.

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When determining whether Cadence Bancorp is a strong investment it is important to analyze Cadence Bancorp's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Cadence Bancorp's future performance. For an informed investment choice regarding Cadence Stock, refer to the following important reports:
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To fully project Cadence Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Cadence Bancorp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Cadence Bancorp's income statement, its balance sheet, and the statement of cash flows.
Potential Cadence Bancorp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Cadence Bancorp investors may work on each financial statement separately, they are all related. The changes in Cadence Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Cadence Bancorp's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.