South Plains Current Valuation vs. Net Income
| SPFI Stock | USD 38.85 0.17 0.44% |
For South Plains profitability analysis, we use financial ratios and fundamental drivers that measure the ability of South Plains to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well South Plains Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between South Plains's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of South Plains Financial 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 South Plains. If investors know South 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 South Plains 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 South Plains Financial is measured differently than its book value, which is the value of South that is recorded on the company's balance sheet. Investors also form their own opinion of South Plains' value that differs from its market value or its book value, called intrinsic value, which is South Plains' 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 South Plains' market value can be influenced by many factors that don't directly affect South Plains' 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 South Plains' value and its price as these two are different measures arrived at by different means. Investors typically determine if South Plains is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, South Plains' 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.
South Plains Financial Net Income vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining South Plains's current stock value. Our valuation model uses many indicators to compare South Plains value to that of its competitors to determine the firm's financial worth. South Plains Financial is rated fourth in current valuation category among its peers. It is currently regarded as top stock in net income category among its peers making up about 0.24 of Net Income per Current Valuation. The ratio of Current Valuation to Net Income for South Plains Financial is roughly 4.21 . 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 South Plains' earnings, one of the primary drivers of an investment's value.South Current Valuation vs. Competition
South Plains Financial is rated fourth 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 2.51 Billion. South Plains retains roughly 263.92 Million in current valuation claiming about 11% of equities under Financials industry.
South Net Income vs. Current Valuation
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.
South Plains |
| = | 263.92 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.
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.
South Plains |
| = | 62.74 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.
South Net Income Comparison
South Plains is currently under evaluation in net income category among its peers.
South Plains Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in South Plains, profitability is also one of the essential criteria for including it into their portfolios because, without profit, South Plains will eventually generate negative long term returns. The profitability progress is the general direction of South Plains' change in net profit over the period of time. It can combine multiple indicators of South Plains, 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.
South Plains Financial, Inc. operates as a bank holding company for City Bank that provides commercial and consumer financial services to small and medium-sized businesses and individuals. South Plains Financial, Inc. was founded in 1941 and is headquartered in Lubbock, Texas. South Plains operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 609 people.
South Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on South Plains. 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 South Plains 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 South Plains' important profitability drivers and their relationship over time.
Use South Plains 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 South Plains 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 South Plains will appreciate offsetting losses from the drop in the long position's value.South Plains Pair Trading
South Plains Financial Pair Trading Analysis
The ability to find closely correlated positions to South Plains could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace South Plains 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 South Plains - 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 South Plains Financial to buy it.
The correlation of South Plains 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 South Plains moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if South Plains Financial 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 South Plains 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 South Plains position
In addition to having South Plains 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?
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Check out World Market Map. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
To fully project South Plains' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of South Plains Financial 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 South Plains' income statement, its balance sheet, and the statement of cash flows.