Banc Of Profitability Analysis
| BANC-PF Stock | 24.63 0.10 0.40% |
Net Loss | First Reported 2010-12-31 | Previous Quarter -1.7 B | Current Value -1.6 B | Quarterly Volatility 735.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.77 | 0.89 |
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For Banc Of profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Banc Of to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Banc of California utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Banc Of's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Banc of California over time as well as its relative position and ranking within its peers.
Banc |
Banc of California Return On Asset vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Banc Of's current stock value. Our valuation model uses many indicators to compare Banc Of value to that of its competitors to determine the firm's financial worth. Banc of California is number one stock in return on equity category among its peers. It also is number one stock in return on asset category among its peers . At this time, Banc Of's Return On Equity is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Banc Of by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.Banc Return On Asset 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.
Banc Of |
| = | -0.14 |
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.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Banc Of |
| = | -0.0118 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Banc Return On Asset Comparison
Banc Of is currently under evaluation in return on asset category among its peers.
Banc Of Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Banc Of, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Banc Of will eventually generate negative long term returns. The profitability progress is the general direction of Banc Of's change in net profit over the period of time. It can combine multiple indicators of Banc Of, 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.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -388.9 M | -369.5 M | |
| Net Interest Income | 859.2 M | 925.7 M | |
| Interest Income | 2.3 B | 1.4 B | |
| Operating Income | -490.4 M | -465.9 M | |
| Net Loss | -1.7 B | -1.6 B | |
| Income Before Tax | -2 B | -1.9 B | |
| Total Other Income Expense Net | -1.5 B | -1.4 B | |
| Net Loss | -1.7 B | -1.6 B | |
| Income Tax Expense | -281 M | -266.9 M | |
| Net Loss | (13.03) | (12.38) | |
| Income Quality | (0.07) | (0.08) | |
| Net Income Per E B T | 0.86 | 0.61 |
Banc Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Banc Of. 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 Banc Of 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 Banc Of's important profitability drivers and their relationship over time.
Banc Of Profitability Trends
Banc Of profitability trend refers to the progression of profit or loss within a business. An upward trend means that Banc Of's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Banc Of's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.
Banc Of Profitability Drivers Correlations
One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Banc Of different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Banc Of in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Banc Of's future profitability.
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Use Banc Of 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 Banc Of 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 Banc Of will appreciate offsetting losses from the drop in the long position's value.Banc Of Pair Trading
Banc of California Pair Trading Analysis
The ability to find closely correlated positions to Banc Of could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Banc Of 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 Banc Of - 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 Banc of California to buy it.
The correlation of Banc Of 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 Banc Of moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Banc of California 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 Banc Of 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 Banc Of position
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Other Information on Investing in Banc Stock
To fully project Banc Of's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Banc of California 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 Banc Of's income statement, its balance sheet, and the statement of cash flows.