Parke Bancorp Return On Equity vs. Current Valuation

PKBK Stock  USD 18.85  0.04  0.21%   
Considering Parke Bancorp's profitability and operating efficiency indicators, Parke Bancorp's profitability may be sliding down. It has an above-average probability of reporting lower numbers next quarter. Profitability indicators assess Parke Bancorp's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.0901
Current Value
0.096
Quarterly Volatility
0.03736151
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Parke Bancorp's Price To Sales Ratio is quite stable compared to the past year. EV To Sales is expected to rise to 4.03 this year, although the value of Days Of Sales Outstanding will most likely fall to 46.76. At this time, Parke Bancorp's Income Quality is quite stable compared to the past year.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.260.35
Way Down
Slightly volatile
Operating Profit Margin1.080.59
Way Up
Slightly volatile
Pretax Profit Margin0.420.46
Significantly Down
Very volatile
Return On Assets0.00980.0127
Significantly Down
Slightly volatile
Return On Equity0.0960.0901
Notably Up
Slightly volatile
For Parke Bancorp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Parke Bancorp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Parke Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Parke Bancorp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Parke 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 Parke Bancorp. If investors know Parke 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 Parke 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
(0.09)
Dividend Share
0.72
Earnings Share
2.27
Revenue Per Share
5.21
Quarterly Revenue Growth
(0.05)
The market value of Parke Bancorp is measured differently than its book value, which is the value of Parke that is recorded on the company's balance sheet. Investors also form their own opinion of Parke Bancorp's value that differs from its market value or its book value, called intrinsic value, which is Parke 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 Parke Bancorp's market value can be influenced by many factors that don't directly affect Parke 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 Parke Bancorp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Parke Bancorp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Parke 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.

Parke Bancorp Current Valuation vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Parke Bancorp's current stock value. Our valuation model uses many indicators to compare Parke Bancorp value to that of its competitors to determine the firm's financial worth.
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Parke Bancorp is rated below average in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about  2,036,021,401  of Current Valuation per Return On Equity. At this time, Parke Bancorp's Return On Equity is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Parke 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.

Parke Current Valuation 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.

Parke Bancorp

Return On Equity

 = 

Net Income

Total Equity

 = 
0.0942
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.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Parke Bancorp

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
191.79 M
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Parke Current Valuation vs Competition

Parke Bancorp is rated below average in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 3.93 Billion. Parke Bancorp holds roughly 191.79 Million in current valuation claiming about 5% of equities under Financials industry.
JavaScript chart by amCharts 3.21.15OthersFNWBFRAFCWBCFBIZPKBK

Parke Bancorp Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Parke Bancorp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Parke Bancorp will eventually generate negative long term returns. The profitability progress is the general direction of Parke Bancorp's change in net profit over the period of time. It can combine multiple indicators of Parke 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-464.6 K-487.8 K
Operating Income43.3 M29.5 M
Income Before Tax43.3 M45.5 M
Total Other Income Expense Net43.3 M45.5 M
Net Income Applicable To Common Shares48.1 M50.5 M
Net Income32.7 M34.4 M
Income Tax Expense10.6 M6.6 M
Net Income From Continuing Ops35.4 M23.4 M
Net Interest Income77.8 M59.5 M
Interest Income123.5 M77.4 M
Change To Netincome-134.1 K-127.4 K
Net Income Per Share 2.14  2.25 
Income Quality 0.93  1.43 
Net Income Per E B T 0.68  0.50 

Parke Profitability Driver Comparison

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

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When determining whether Parke Bancorp is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Parke Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Parke Bancorp Stock. Highlighted below are key reports to facilitate an investment decision about Parke Bancorp Stock:
Check out Your Equity Center.
For more information on how to buy Parke Stock please use our How to buy in Parke Stock guide.
You can also try the Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
To fully project Parke Bancorp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Parke 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 Parke Bancorp's income statement, its balance sheet, and the statement of cash flows.
Potential Parke Bancorp investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Parke Bancorp investors may work on each financial statement separately, they are all related. The changes in Parke Bancorp's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Parke 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.

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