German American Current Valuation vs. Return On Asset

GABC Stock  USD 45.12  0.36  0.79%   
Considering German American's profitability and operating efficiency indicators, German American Bancorp 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 German American's ability to earn profits and add value for shareholders. At present, German American's Days Sales Outstanding is projected to decrease significantly based on the last few years of reporting. The current year's EV To Sales is expected to grow to 4.38, whereas Operating Cash Flow Sales Ratio is forecasted to decline to 0.30. At present, German American's Income Before Tax is projected to increase significantly based on the last few years of reporting. The current year's Net Income is expected to grow to about 90.2 M, whereas Accumulated Other Comprehensive Income is projected to grow to (206.2 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.740.9219
Significantly Down
Slightly volatile
Net Profit Margin0.20.3426
Way Down
Slightly volatile
Operating Profit Margin0.550.4361
Significantly Up
Pretty Stable
Pretax Profit Margin0.260.4134
Way Down
Very volatile
Return On Assets0.00860.014
Way Down
Slightly volatile
Return On Equity0.0880.1294
Way Down
Pretty Stable
For German American profitability analysis, we use financial ratios and fundamental drivers that measure the ability of German American to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well German American Bancorp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between German American's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of German American Bancorp over time as well as its relative position and ranking within its peers.
  

German American's Revenue Breakdown by Earning Segment

Check out Risk vs Return Analysis.
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 German American. If investors know German 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 German American 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
(0.02)
Dividend Share
1.08
Earnings Share
2.77
Revenue Per Share
8.341
Quarterly Revenue Growth
0.005
The market value of German American Bancorp is measured differently than its book value, which is the value of German that is recorded on the company's balance sheet. Investors also form their own opinion of German American's value that differs from its market value or its book value, called intrinsic value, which is German American'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 German American's market value can be influenced by many factors that don't directly affect German American'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 German American's value and its price as these two are different measures arrived at by different means. Investors typically determine if German American is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, German American'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.

German American Bancorp Return On Asset vs. Current Valuation Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining German American's current stock value. Our valuation model uses many indicators to compare German American value to that of its competitors to determine the firm's financial worth.
German American Bancorp is rated # 3 in current valuation category among its peers. It also is rated # 3 in return on asset category among its peers . The ratio of Current Valuation to Return On Asset for German American Bancorp is about  100,395,730,149 . As of December 11, 2024, Return On Assets is expected to decline to 0.01. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the German American's earnings, one of the primary drivers of an investment's value.

German Current Valuation vs. Competition

German American Bancorp is rated # 3 in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is currently estimated at about 8.59 Billion. German American retains roughly 1.35 Billion in current valuation claiming about 16% of equities under Financials industry.

German Return On Asset vs. Current Valuation

Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

German American

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
1.35 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
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.

German American

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0134
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.

German Return On Asset Comparison

German American is currently under evaluation in return on asset category among its peers.

German American Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in German American, profitability is also one of the essential criteria for including it into their portfolios because, without profit, German American will eventually generate negative long term returns. The profitability progress is the general direction of German American's change in net profit over the period of time. It can combine multiple indicators of German American, 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-217.1 M-206.2 M
Operating Income109.3 M114.8 M
Income Before Tax103.6 M108.8 M
Total Other Income Expense Net-5.7 M-5.4 M
Net Income85.9 M90.2 M
Income Tax Expense17.8 M18.6 M
Net Income Applicable To Common Shares94.1 M98.8 M
Net Income From Continuing Ops88.8 M67.2 M
Net Interest Income197.2 M152.1 M
Interest Income250.5 M173.6 M
Change To Netincome12.8 M13.5 M
Net Income Per Share 2.91  3.05 
Income Quality 1.25  1.75 
Net Income Per E B T 0.83  0.60 

German Profitability Driver Comparison

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

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

German American Pair Trading

German American Bancorp Pair Trading Analysis

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

In addition to having German American 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.

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Funds or Etfs that invest in both long and short positions of different entities to enhance returns from broad market movements over time. The Market Neutral Funds theme has 41 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 Market Neutral Funds Theme or any other thematic opportunities.
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When determining whether German American Bancorp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of German American's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of German American Bancorp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on German American Bancorp Stock:
Check out Risk vs Return Analysis.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
To fully project German American's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of German American Bancorp 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 German American's income statement, its balance sheet, and the statement of cash flows.
Potential German American investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although German American investors may work on each financial statement separately, they are all related. The changes in German American's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on German American'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.