Investors might be considering a shift from Central Valley Community (CVCY) to Papaya (PPYA) due to a few key factors. Central Valley Community's operating margin is at 0.4343, which indicates a high level of operational efficiency. However, the company's cash flow has seen a significant decrease, with a change in cash and cash equivalents of
-132.3M. This could potentially signal financial instability, making it a less attractive investment. The company's PE Ratio is 6.6255, which is relatively low and could suggest that the stock is undervalued. However, the EPS estimate for the current quarter is only 0.66, which might not meet investor expectations. Furthermore, the company's mean deviation is 2.35, indicating a high level of risk associated with the stock. In conclusion, while Central Valley Community has some positive aspects, the decrease in cash flow and high risk could make Papaya a more attractive investment option.
Rigorous look
By examining the existing fundamental indicators between Central Valley and Papaya, we can assess the impact of market volatilities on the prices of both companies. This analysis can also help determine if combining these companies in a single portfolio can help diversify away market risk. Pair trading strategies can also be utilized, such as matching a long position in Papaya with a short position in Central Valley. For more information, please refer to our
pair correlation module.
Now, let's analyze the assets. The asset utilization indicator measures the revenue generated for every dollar of assets a company currently holds. Central Valley has an asset utilization ratio of 3.44 percent, indicating that the company generates $0.0344 for each dollar of assets. An increasing asset utilization ratio suggests that Central Valley Community is becoming more efficient in using each dollar of assets for its daily operations.
understanding Central Valley dividends
A dividend is the distribution of a portion of Central Valley earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Central Valley dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Central one year expected dividend income is about USD0.08 per share.
Investing in stocks that pay
dividends, such as stock of Central Valley Community, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Central Valley must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Central Valley. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is Central Valley's Liquidity
Central Valley
financial leverage refers to using borrowed capital as a funding source to finance Central Valley Community ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Central Valley 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 Central Valley's 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 Central Valley's 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 Central Valley's total debt and its cash.
Is Central Valley valued reasonably by the market?
Net Income Breakdown
Lets now take a look at Central Valley net income. Based on the recorded statements, Central Valley Community reported net income of 26.64
M. This is 97.91% lower than that of the Banks sector and significantly higher than that of the
Financials industry. The net income for all United States stocks is 95.33% higher than that of Central Valley. As for Papaya Growth we see net income of 1.55
M, which is much higher than that of the Financials
| CVCY | 26.64 Million | 94.5 |
| Sector | 0.0 | 0.0 |
| PPYA | 1.55 Million | 5.5 |
Central Valley Community (USA Stocks: CVCY) is a regional bank with a market capitalization of
$183.02M and is listed on the NASDAQ exchange. The bank has a strong financial foundation with an EBITDA of $48.98M and an end period cash flow of $31.2M.
Despite a loss in cash and cash equivalents changes of $132.3M, the company still holds a significant amount of cash and short term investments, totaling
$680M. From an investment perspective, Central Valley Community has a positive earnings per share (EPS) estimate for the current year at $2.36, which is slightly higher than its current earnings per share of $2.35. The bank also has a strong book value of $15.487, indicating that its net asset value is robust. However, the bank's payout ratio is relatively low at 20.43%, suggesting that it is not returning a large proportion of its profits to shareholders in the form of dividends. The bank's price to earnings to growth (PEG) ratio is 2.20X, which may indicate that it is overvalued. In conclusion, while Central Valley Community has a solid financial foundation and positive earnings outlook, its low payout ratio and high PEG ratio suggest that it may not be the best investment choice for dividend-seeking or value investors. .
Our perspective of the current Central Valley rise
Despite the recent uptick in Central Valley Community Bancorp's (CVCY) stock, investors are advised to proceed with caution. The current Market Risk Adjusted Performance (MRAP) of -0.1 suggests a potential downside risk, indicating that the stock's price may decline in the near future. While the recent rise may appear promising, the negative MRAP signals that the stock's performance may not be sustainable, and a price correction could be on the horizon. Therefore, investors should closely monitor this stock and take into account the potential risks associated with it. Central Valley Community exhibits very low volatility, with a skewness of -0.28 and a kurtosis of 1.24. However, we recommend investors to further investigate Central Valley Community's technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure Central Valley's stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly impact
Central Valley's stock price, adding stress to investors as they watch the value of their shares decrease. This typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall.
Our Conclusion on Central Valley
When is the right time to buy or sell Central Valley Community? Buying stocks such as Central Valley isn't very hard. However, what challenging for most investors is doing it at the right time. Proper
market timing is something most people cannot do without
sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With a relatively neutral outlook on the current economy, it is better to hold off any trading of Central 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 Central Valley.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Central Valley Community. Please refer to our
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