Red River Current Valuation vs. EBITDA
| RRBI Stock | USD 61.04 1.06 1.77% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.72 | 0.81 |
|
| |||||
| Net Profit Margin | 0.24 | 0.3265 |
|
| |||||
| Operating Profit Margin | 0.34 | 0.4891 |
|
| |||||
| Pretax Profit Margin | 0.3 | 0.402 |
|
| |||||
| Return On Assets | 0.0086 | 0.0111 |
|
| |||||
| Return On Equity | 0.088 | 0.1148 |
|
|
For Red River profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Red River to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Red River Bancshares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Red River's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Red River Bancshares over time as well as its relative position and ranking within its peers.
Red |
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 Red River. If investors know Red 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 Red River 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 0.135 | Dividend Share 0.35 | Earnings Share 4.75 | Revenue Per Share 15.238 | Quarterly Revenue Growth 0.056 |
The market value of Red River Bancshares is measured differently than its book value, which is the value of Red that is recorded on the company's balance sheet. Investors also form their own opinion of Red River's value that differs from its market value or its book value, called intrinsic value, which is Red River'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 Red River's market value can be influenced by many factors that don't directly affect Red River'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 Red River's value and its price as these two are different measures arrived at by different means. Investors typically determine if Red River is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Red River'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.
Red River Bancshares EBITDA vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Red River's current stock value. Our valuation model uses many indicators to compare Red River value to that of its competitors to determine the firm's financial worth. Red River Bancshares is rated fourth in current valuation category among its peers. It is rated second in ebitda category among its peers totaling about 0.19 of EBITDA per Current Valuation. The ratio of Current Valuation to EBITDA for Red River Bancshares is roughly 5.15 . As of now, Red River's EBITDA is increasing as compared to previous years. 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 Red River's earnings, one of the primary drivers of an investment's value.Red Current Valuation vs. Competition
Red River Bancshares is rated fourth in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Financials industry is at this time estimated at about 1.91 Billion. Red River holds roughly 179.77 Million in current valuation claiming about 9% of equities under Financials industry.
Red EBITDA 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.
Red River |
| = | 179.77 M |
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.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Red River |
| = | 34.88 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Red EBITDA Comparison
Red River is currently under evaluation in ebitda category among its peers.
Red River Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Red River, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Red River will eventually generate negative long term returns. The profitability progress is the general direction of Red River's change in net profit over the period of time. It can combine multiple indicators of Red River, 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 | -60.5 M | -57.5 M | |
| Net Interest Income | 88.7 M | 71.2 M | |
| Interest Income | 113.4 M | 81.4 M | |
| Income Before Tax | 34.9 M | 33.6 M | |
| Net Income Applicable To Common Shares | 42.5 M | 26 M | |
| Net Income | 34.9 M | 28.9 M | |
| Income Tax Expense | 8.1 M | 7.2 M | |
| Operating Income | 34.9 M | 38.3 M | |
| Net Income From Continuing Ops | 36.8 M | 29.1 M | |
| Total Other Income Expense Net | 42.9 M | 45.1 M | |
| Change To Netincome | 7.1 M | 8.4 M | |
| Net Income Per Share | 4.87 | 2.91 | |
| Income Quality | 1.15 | 0.96 | |
| Net Income Per E B T | 0.81 | 0.62 |
Red Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Red River. 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 Red River 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 Red River's important profitability drivers and their relationship over time.
Use Red River 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 Red River 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 Red River will appreciate offsetting losses from the drop in the long position's value.Red River Pair Trading
Red River Bancshares Pair Trading Analysis
The ability to find closely correlated positions to Red River could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Red River 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 Red River - 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 Red River Bancshares to buy it.
The correlation of Red River 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 Red River moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Red River Bancshares 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 Red River 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 Red River position
In addition to having Red River 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 Large Cap ETFs Thematic Idea Now
Large Cap ETFs
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Large Cap ETFs theme has 678 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 Large Cap ETFs Theme or any other thematic opportunities.
| View All Next | Launch |
Check out Your Equity Center. You can also try the Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
To fully project Red River's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Red River Bancshares 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 Red River's income statement, its balance sheet, and the statement of cash flows.