MF Bancorp Return On Asset vs. Book Value Per Share

MFBP Stock  USD 19.00  0.77  4.22%   
Considering MF Bancorp's profitability and operating efficiency indicators, MF Bancorp may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess MF Bancorp's ability to earn profits and add value for shareholders.
For MF Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MF Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MF Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MF Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MF Bancorp over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between MF Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if MF Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MF 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.

MF Bancorp Book Value Per Share vs. Return On Asset Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MF Bancorp's current stock value. Our valuation model uses many indicators to compare MF Bancorp value to that of its competitors to determine the firm's financial worth.
MF Bancorp is regarded third in return on asset category among its peers. It is rated below average in book value per share category among its peers creating about  1,225  of Book Value Per Share per Return On Asset. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MF Bancorp's earnings, one of the primary drivers of an investment's value.

MFBP Book Value Per Share vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

MF Bancorp

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0086
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Book Value per Share (B/S) can be calculated by subtracting liabilities from assets, and then dividing it by the total number of currently outstanding shares. It indicates the level of safety associated with each common share after removing the effects of liabilities. In other words, a shareholder can use this ratio to see how much he or she can sell the stake in the company in the event of a liquidation.

MF Bancorp

Book Value per Share

 = 

Common Equity

Average Shares

 = 
10.54 X
The naive approach to look at Book Value per Share is to compare it to current stock price. If Book Value per Share is higher than the currently traded stock price, the company can be considered undervalued. However, investors must be aware that conventional calculation of Book Value does not include intangible assets such as goodwill, intellectual property, trademarks or brands and may not be an appropriate measure for many firms.

MFBP Book Value Per Share Comparison

MF Bancorp is currently under evaluation in book value per share category among its peers.

MF Bancorp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MF Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MF Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of MF Bancorp's change in net profit over the period of time. It can combine multiple indicators of MF 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.
MF Bancorp, Inc. operates as a bank holding company for the Mechanics and Farmers Bank that provides consumer and commercial banking products and services in North Carolina. The company was founded in 1907 and is headquartered in Durham, North Carolina. MF Bancorp operates under BanksRegional classification in the United States and is traded on OTC Exchange.

MFBP Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MF 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 MF 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 MF Bancorp's important profitability drivers and their relationship over time.

Use MF Bancorp 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 MF Bancorp 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 MF Bancorp will appreciate offsetting losses from the drop in the long position's value.

MF Bancorp Pair Trading

MF Bancorp Pair Trading Analysis

The ability to find closely correlated positions to MF Bancorp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MF Bancorp 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 MF Bancorp - 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 MF Bancorp to buy it.
The correlation of MF Bancorp 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 MF Bancorp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MF Bancorp 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 MF Bancorp 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your MF Bancorp position

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Additional Tools for MFBP Pink Sheet Analysis

When running MF Bancorp's price analysis, check to measure MF Bancorp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy MF Bancorp is operating at the current time. Most of MF Bancorp's value examination focuses on studying past and present price action to predict the probability of MF Bancorp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move MF Bancorp's price. Additionally, you may evaluate how the addition of MF Bancorp to your portfolios can decrease your overall portfolio volatility.