1st Capital Price To Earning vs. Return On Equity
| FISBDelisted Stock | USD 14.00 0.00 0.00% |
For 1st Capital profitability analysis, we use financial ratios and fundamental drivers that measure the ability of 1st Capital to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well 1st Capital Bank utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between 1st Capital's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of 1st Capital Bank over time as well as its relative position and ranking within its peers.
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1st Capital Bank Return On Equity vs. Price To Earning Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining 1st Capital's current stock value. Our valuation model uses many indicators to compare 1st Capital value to that of its competitors to determine the firm's financial worth. 1st Capital Bank is one of the top stocks in price to earning category among its peers. It also is one of the top stocks in return on equity category among its peers reporting about 0.01 of Return On Equity per Price To Earning. The ratio of Price To Earning to Return On Equity for 1st Capital Bank is roughly 68.22 . Comparative valuation analysis is a catch-all model that can be used if you cannot value 1st Capital by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for 1st Capital's OTC Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.1st Return On Equity vs. Price To Earning
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.
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| = | 8.65 X |
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.
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.
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| = | 0.13 |
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.
1st Return On Equity Comparison
1st Capital is currently under evaluation in return on equity category among its peers.
1st Capital Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in 1st Capital, profitability is also one of the essential criteria for including it into their portfolios because, without profit, 1st Capital will eventually generate negative long term returns. The profitability progress is the general direction of 1st Capital's change in net profit over the period of time. It can combine multiple indicators of 1st Capital, 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.
1st Capital Bancorp operates as the bank holding company for 1st Capital Bank that provides various banking products and services for businesses, professionals, real estate investors, family commercial entities, and individuals in the Central Coast region of California. The company was founded in 2007 and is headquartered in Salinas, California. 1ST CAP operates under BanksRegional classification in the United States and is traded on OTC Exchange.
1st Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on 1st Capital. 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 1st Capital 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 1st Capital's important profitability drivers and their relationship over time.
Use 1st Capital in pair-trading
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 1st Capital 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 1st Capital will appreciate offsetting losses from the drop in the long position's value.1st Capital Pair Trading
1st Capital Bank Pair Trading Analysis
The ability to find closely correlated positions to 1st Capital could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace 1st Capital 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 1st Capital - 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 1st Capital Bank to buy it.
The correlation of 1st Capital 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 1st Capital moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if 1st Capital Bank 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 1st Capital 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.Use Investing Themes to Complement your 1st Capital position
In addition to having 1st Capital in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Technology Thematic Idea Now
Technology
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. The Technology theme has 30 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Technology Theme or any other thematic opportunities.
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Check out Investing Opportunities to better understand how to build diversified portfolios. Also, note that the market value of any otc stock could be closely tied with the direction of predictive economic indicators such as signals in state. You can also try the Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Consideration for investing in 1st OTC Stock
If you are still planning to invest in 1st Capital Bank check if it may still be traded through OTC markets such as Pink Sheets or OTC Bulletin Board. You may also purchase it directly from the company, but this is not always possible and may require contacting the company directly. Please note that delisted stocks are often considered to be more risky investments, as they are no longer subject to the same regulatory and reporting requirements as listed stocks. Therefore, it is essential to carefully research the 1st Capital's history and understand the potential risks before investing.
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