BancFirst Profit Margin vs. Return On Equity

BANF Stock  USD 118.84  1.59  1.36%   
Based on BancFirst's profitability indicators, BancFirst may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in January. Profitability indicators assess BancFirst's ability to earn profits and add value for shareholders.

BancFirst Net Profit Margin

0.19

0.340.19
At this time, BancFirst's Days Of Sales Outstanding is most likely to increase significantly in the upcoming years. At this time, BancFirst's Net Income is most likely to increase significantly in the upcoming years. The BancFirst's current Income Tax Expense is estimated to increase to about 60.4 M, while Total Other Income Expense Net is projected to decrease to (79.1 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Net Profit Margin0.190.3405
Way Down
Slightly volatile
Operating Profit Margin0.650.4327
Way Up
Pretty Stable
Pretax Profit Margin0.270.4327
Way Down
Slightly volatile
Return On Assets0.00950.0172
Way Down
Slightly volatile
Return On Equity0.130.1482
Fairly Down
Very volatile
For BancFirst profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BancFirst to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BancFirst utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BancFirst's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BancFirst over time as well as its relative position and ranking within its peers.
  

BancFirst's Revenue Breakdown by Earning Segment

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For more detail on how to invest in BancFirst Stock please use our How to Invest in BancFirst guide.
Is Regional Banks 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 BancFirst. If investors know BancFirst 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 BancFirst listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.151
Dividend Share
1.75
Earnings Share
6.3
Revenue Per Share
18.438
Quarterly Revenue Growth
0.097
The market value of BancFirst is measured differently than its book value, which is the value of BancFirst that is recorded on the company's balance sheet. Investors also form their own opinion of BancFirst's value that differs from its market value or its book value, called intrinsic value, which is BancFirst's 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 BancFirst's market value can be influenced by many factors that don't directly affect BancFirst's 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 BancFirst's value and its price as these two are different measures arrived at by different means. Investors typically determine if BancFirst is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BancFirst's 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.

BancFirst Return On Equity vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining BancFirst's current stock value. Our valuation model uses many indicators to compare BancFirst value to that of its competitors to determine the firm's financial worth.
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BancFirst is rated second in profit margin category among its peers. It is rated third in return on equity category among its peers reporting about  0.41  of Return On Equity per Profit Margin. The ratio of Profit Margin to Return On Equity for BancFirst is roughly  2.43 . At this time, BancFirst's Net Profit Margin is most likely to increase slightly in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value BancFirst 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.

BancFirst Return On Equity vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

BancFirst

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
0.34 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
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.

BancFirst

Return On Equity

 = 

Net Income

Total Equity

 = 
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.

BancFirst Return On Equity Comparison

0.14130.16810.14280.12370.11100%
BancFirst is currently under evaluation in return on equity category among its peers.

BancFirst Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in BancFirst, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BancFirst will eventually generate negative long term returns. The profitability progress is the general direction of BancFirst's change in net profit over the period of time. It can combine multiple indicators of BancFirst, 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 ReportedProjected for Next Year
Accumulated Other Comprehensive Income-50 M-47.5 M
Operating Income269.9 M283.4 M
Income Before Tax269.9 M283.4 M
Total Other Income Expense Net-75.3 M-79.1 M
Net Income212.5 M223.1 M
Income Tax Expense57.5 M60.4 M
Net Income Applicable To Common Shares222.1 M233.2 M
Net Income From Continuing Ops212.5 M127.5 M
Net Interest Income424.5 M315.7 M
Interest Income623.9 M357.8 M
Change To Netincome27.3 M28.6 M
Net Income Per Share 6.45  6.78 
Income Quality 1.10  1.44 
Net Income Per E B T 0.79  0.54 

BancFirst Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on BancFirst. 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 BancFirst 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 BancFirst's important profitability drivers and their relationship over time.

Use BancFirst 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 BancFirst 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 BancFirst will appreciate offsetting losses from the drop in the long position's value.

BancFirst Pair Trading

BancFirst Pair Trading Analysis

The ability to find closely correlated positions to BancFirst could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BancFirst 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 BancFirst - 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 BancFirst to buy it.
The correlation of BancFirst 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 BancFirst moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BancFirst 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 BancFirst 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.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your BancFirst position

In addition to having BancFirst 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?

Run Alternative Energy Thematic Idea Now

Alternative Energy
Alternative Energy Theme
Large and mid-size companies, ETFs and funds that are either investing or directly involved in providing energy derived from sources not connected to fossil fuels, do not consume natural resources, and do not harm the environment. This includes wind power, nuclear and solar energy, biofuel, ethanol, hydrogen and others alternative sources of energy. The Alternative Energy theme has 42 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Alternative Energy Theme or any other thematic opportunities.
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When determining whether BancFirst is a strong investment it is important to analyze BancFirst's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact BancFirst's future performance. For an informed investment choice regarding BancFirst Stock, refer to the following important reports:
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For more detail on how to invest in BancFirst Stock please use our How to Invest in BancFirst guide.
You can also try the Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
To fully project BancFirst's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of BancFirst 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 BancFirst's income statement, its balance sheet, and the statement of cash flows.
Potential BancFirst investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although BancFirst investors may work on each financial statement separately, they are all related. The changes in BancFirst's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on BancFirst's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

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