Pacific Premier Return On Equity vs. Net Income

PPBI Stock  USD 27.85  0.29  1.05%   
Considering Pacific Premier's profitability and operating efficiency indicators, Pacific Premier Bancorp is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess Pacific Premier's ability to earn profits and add value for shareholders.
 
Return On Equity  
First Reported
2010-12-31
Previous Quarter
0.01070291
Current Value
0.0112
Quarterly Volatility
0.04764954
 
Credit Downgrade
 
Yuan Drop
 
Covid
As of now, Pacific Premier's Operating Cash Flow Sales Ratio is increasing as compared to previous years. The Pacific Premier's current Days Of Sales Outstanding is estimated to increase to 57.00, while Sales General And Administrative To Revenue is projected to decrease to 0.43. As of now, Pacific Premier's Net Income Applicable To Common Shares is increasing as compared to previous years. The Pacific Premier's current Net Income Per Share is estimated to increase to 0.34, while Accumulated Other Comprehensive Income is forecasted to increase to (94.6 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.07780.0701
Significantly Up
Very volatile
Operating Profit Margin0.07350.0773
Notably Down
Slightly volatile
Pretax Profit Margin0.140.0773
Way Up
Slightly volatile
Return On Assets0.00310.0016
Way Up
Slightly volatile
Return On Equity0.01120.0107
Sufficiently Up
Slightly volatile
For Pacific Premier profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Pacific Premier to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Pacific Premier Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Pacific Premier's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Pacific Premier Bancorp over time as well as its relative position and ranking within its peers.
  

Pacific Premier's Revenue Breakdown by Earning Segment

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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 Pacific Premier. If investors know Pacific 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 Pacific Premier 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
(0.23)
Dividend Share
1.32
Earnings Share
(0.13)
Revenue Per Share
4.02
Quarterly Revenue Growth
(0.09)
The market value of Pacific Premier Bancorp is measured differently than its book value, which is the value of Pacific that is recorded on the company's balance sheet. Investors also form their own opinion of Pacific Premier's value that differs from its market value or its book value, called intrinsic value, which is Pacific Premier'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 Pacific Premier's market value can be influenced by many factors that don't directly affect Pacific Premier'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 Pacific Premier's value and its price as these two are different measures arrived at by different means. Investors typically determine if Pacific Premier is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pacific Premier'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.

Pacific Premier Bancorp Net Income vs. Return On Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Pacific Premier's current stock value. Our valuation model uses many indicators to compare Pacific Premier value to that of its competitors to determine the firm's financial worth.
Pacific Premier Bancorp is rated below average in return on equity category among its peers. It is rated below average in net income category among its peers . As of now, Pacific Premier's Return On Equity is decreasing as compared to previous years. 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 Pacific Premier's earnings, one of the primary drivers of an investment's value.

Pacific Net Income 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.

Pacific Premier

Return On Equity

 = 

Net Income

Total Equity

 = 
-0.0036
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.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Pacific Premier

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
30.85 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Pacific Net Income Comparison

Pacific Premier is currently under evaluation in net income category among its peers.

Pacific Premier Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Pacific Premier, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Pacific Premier will eventually generate negative long term returns. The profitability progress is the general direction of Pacific Premier's change in net profit over the period of time. It can combine multiple indicators of Pacific Premier, 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-99.6 M-94.6 M
Operating Income34 M32.3 M
Income Before Tax34 M66.8 M
Total Other Income Expense Net34 M35.7 M
Net Income30.9 M48.1 M
Income Tax Expense3.2 MM
Net Income Applicable To Common Shares326.3 M342.6 M
Net Income From Continuing Ops239.9 M131.1 M
Net Interest Income659.6 M481.6 M
Interest Income888.6 M551.7 M
Change To Netincome44.4 M26 M
Net Income Per Share 0.33  0.34 
Income Quality 8.13  8.54 
Net Income Per E B T 0.91  1.05 

Pacific Profitability Driver Comparison

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

Use Pacific Premier 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 Pacific Premier 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 Pacific Premier will appreciate offsetting losses from the drop in the long position's value.

Pacific Premier Pair Trading

Pacific Premier Bancorp Pair Trading Analysis

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

In addition to having Pacific Premier 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 Aircraft Thematic Idea Now

Aircraft
Aircraft Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Aircraft theme has 44 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 Aircraft Theme or any other thematic opportunities.
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When determining whether Pacific Premier Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Pacific Premier's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Pacific Premier Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Pacific Premier Bancorp Stock:
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You can also try the Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
To fully project Pacific Premier's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Pacific Premier 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 Pacific Premier's income statement, its balance sheet, and the statement of cash flows.
Potential Pacific Premier investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Pacific Premier investors may work on each financial statement separately, they are all related. The changes in Pacific Premier's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Pacific Premier'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.