| 2021 | 2022 | 2023 | 2024 (projected) | Cash and Equivalents | 138.4M | 185.9M | 213.8M | 176.7M | Total Assets | 7.2B | 8.0B | 9.2B | 8.5B |
Should I trade my Luther (USA Stocks:LBC) holdings?
 | By Gabriel Shpitalnik | Macroaxis Story |
Luther Burbank Corporation carries a substantial debt of $1.36 billion, with a debt-to-equity ratio of 10.59, indicating potential difficulties in meeting its financial obligations. The company's performance score is 5 out of 100. Its market risk, or Beta, is 2.7, suggesting a higher risk compared to the market. This means that if the market rises, Luther Burbank is likely to outperform it, but it may underperform in a declining market. Our stock performance predictions are based on a comprehensive evaluation of the company's past performance, including all available fundamental and technical indicators. Currently, Luther Burbank carries a risk of 2.42%. Please verify Luther Burbank's maximum drawdown, skewness, and typical daily price, as well as the relationship between downside variance and daily balance of power to assess future price movements.
Key Points
Luther Burbank's (USA Stocks:LBC) long-term debt stands at a substantial 1.4B, which could potentially impact the stock's performance. However, considering the company's net invested capital also stands at 1.4B, this could indicate a strategic use of leverage to drive growth. Investors should carefully consider these factors when evaluating the potential risk and reward of investing in Luther Burbank.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Raphi Shpitalnik
In the world of investment, it's often said that risk and reward go hand in hand. When considering Luther Burbank Corporation (LBC), a player in the Financial Services industry specializing in Thrifts & Mortgage Finance, this axiom appears to be relevant. The company's upcoming debt levels present a unique scenario that could potentially impact its stock performance, and by extension, provide an investment opportunity. Luther Burbank, with a typical day price of $9.22, currently holds total assets amounting to a considerable $8 billion. However, it is crucial to note the company's long-term debt, which stands at a significant $1.4 billion. In addition, the total stockholder equity of $682.5 million is worth noting, reflecting a substantial shareholder commitment. With a dividend yield of approximately 5.97%, the company offers an attractive income stream for investors. However, it's important to be mindful of the possible downside price of $7.22 and a negative period momentum indicator of -0.17, which may point towards potential challenges ahead. Interestingly, Luther Burbank has maintained a steady cash flow from operating activities, which is approximately $49.8 million. This, coupled with the 'Buy' consensus from analysts, presents a somewhat optimistic outlook despite the potential debt concerns. As the company navigates its fiscal year end in December, investors should keep a close eye on the financial indicators, debt levels, and analyst opinions to capitalize on any investment opportunities that may arise. After all, in the world of investing, fortune often favors the bold. Luther Burbank is set to announce its earnings today. Currently, a significant decrease is projected in Luther Burbank's Accrued Expenses Turnover based on past years' reports. The Cash and Equivalents Turnover for this year is expected to rise to 2.28, while the Net Income Per Employee is predicted to drop to approximately $242.1K. Many are intrigued by the thrifts & mortgage finance sector, and Luther Burbank presents a unique alternative. The company's ability to maintain a manageable debt level while reducing operating losses will be evaluated.Luther Burbank financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Luther Burbank, including all of Luther Burbank's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Luther Burbank assets, the company is considered highly leveraged. Understanding the composition and structure of overall Luther Burbank debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
How important is Luther Burbank's Liquidity
Luther Burbank financial leverage refers to using borrowed capital as a funding source to finance Luther Burbank ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Luther Burbank 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 Luther Burbank'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 Luther Burbank'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 Luther Burbank's total debt and its cash.
Breaking down Luther Burbank Further
Luther Burbank reported the last year's revenue of 123.27 M. Total Income to common stockholders was 35.95 M with profit before taxes, overhead, and interest of 177.76 M.
"Never put all your eggs in one basket," is a common saying in finance that rings true when considering the potential impact of Luther Burbank's (LBC) upcoming debt levels on its stock performance. With a total debt of $1.36B against a net asset of $7.97B, the company's debt to equity ratio stands at 10.59%, indicating a moderate level of risk.However, with a risk-adjusted performance of 0.0577, the company has demonstrated its ability to generate reasonable returns for the level of risk taken. The probability of bankruptcy is high at 71.50%, which may be a concern for potential investors. However, with 79.99% of shares owned by insiders, there is a strong vote of confidence from those with intimate knowledge of the company's operations. Therefore, while Luther Burbank's upcoming debt levels may impact its stock performance, it could also present an investment opportunity for those willing to take on a higher level of risk. .
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