Macroaxis Stories

Is BBX Capital (NYQ:BBX) about to rebound?

November 1, 2020  By
With so much uncertainty about the consumer cyclical space, it is fair to break down BBX Capital against current market trends. As expected, BBX Capital is starting to reaffirm its true potential as investors are becoming more and more confident in the future outlook. The company returns are correlated to returns on the market. As market fluctuates, the company is expected to follow. The appearance of strong fundamental indicators of the company suggests a short-term price swing for investors of BBX Capital. BBX Capital is scheduled to announce its earnings today. The upcoming quarterly report is expected on the 6th of November 2020. BBX Capital symbol was renamed from BBX to BVH on 1st of October 2020.
Published over a year ago
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Reviewed by Gabriel Shpitalnik

BBX Capital's average rating is Strong Buy from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on BBX Capital market sentiment investors' perception of the future value of BBX Capital. Let us look at a few aspects of BBX Capital technical analysis.

How important is Bluegreen Vacations's Liquidity

Bluegreen Vacations financial leverage refers to using borrowed capital as a funding source to finance Bluegreen Vacations Holding ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bluegreen Vacations financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Bluegreen Vacations' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Bluegreen Vacations' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Bluegreen Vacations's total debt and its cash.

How is Bluegreen allocating its cash?

To perform a cash flow analysis of Bluegreen Vacations, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Bluegreen Vacations is receiving and how much cash it distributes out in a given period. The Bluegreen Vacations cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Breaking down Bluegreen Vacations Further

The entity has a beta of 0.8899. Let's try to break down what BBX Capital's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, BBX Capital will likely underperform. The beta indicator helps investors understand whether BBX Capital moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if BBX Capital deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. The firm reported the last year's revenue of 715.84 M. Reported Net Loss for the year was (36.27 M) with profit before taxes, overhead, and interest of 635.65 M.

BBX Capital may start a throwback in December

Kurtosis is down to 7.71. It may suggest a possible volatility slide. BBX Capital exhibits very low volatility with skewness of -1.64 and kurtosis of 7.71. However, we advise investors to further study BBX Capital technical indicators to make sure all market info is available and is reliable.

Our Final Perspective on BBX Capital

While some firms under the resorts & casinos industry are still a bit expensive, BBX Capital may offer a potential longer-term growth to investors. With a relatively neutral outlook on the current economy, it is better to hold off any trading of BBX Capital as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to BBX Capital.

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Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Bluegreen Vacations Holding. Please refer to our Terms of Use for any information regarding our disclosure principles.

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