Red River Return On Equity vs. Current Valuation
| RRBI Stock | USD 53.34 0.62 1.15% |
For Red River profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red River to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red River Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red River's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red River Bancshares over time as well as its relative position and ranking within its peers.
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Is Banking 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 Red River. If investors know Red 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 Red River listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Red River Bancshares is measured differently than its book value, which is the value of Red that is recorded on the company's balance sheet. Investors also form their own opinion of Red River's value that differs from its market value or its book value, called intrinsic value, which is Red River'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 Red River's market value can be influenced by many factors that don't directly affect Red River'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 Red River's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red River is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red River'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.
Red River Bancshares Current Valuation vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Red River's current stock value. Our valuation model uses many indicators to compare Red River value to that of its competitors to determine the firm's financial worth. Red River Bancshares is rated second in return on equity category among its peers. It is rated below average in current valuation category among its peers reporting about 868,732,896 of Current Valuation per Return On Equity. 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 Red River's earnings, one of the primary drivers of an investment's value.Red 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.
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| = | 0.11 |
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.
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| = | 95.39 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.
Red Current Valuation vs Competition
Red River Bancshares 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 1.6 Billion. Red River holds roughly 95.39 Million in current valuation claiming about 6% of equities under Financials industry.
Red River Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Red River, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red River will eventually generate negative long term returns. The profitability progress is the general direction of Red River's change in net profit over the period of time. It can combine multiple indicators of Red River, 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.
Red River Bancshares, Inc. operates as a bank holding company for Red River Bank that provides banking products and services to commercial and retail customers in Louisiana. The company was incorporated in 1998 and is headquartered in Alexandria, Louisiana. Red River operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 348 people.
Red Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Red River. 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 Red River 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 Red River's important profitability drivers and their relationship over time.
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To fully project Red River's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Red River Bancshares 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 Red River's income statement, its balance sheet, and the statement of cash flows.