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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
LBC
Primary Facts
Banks�Regional
Name:
-
Sector:
34.72M
Industry:
12.68
CEO:
Ms. Simone Lagomarsino
Total Employees:
Small Cap
Our Technological Advancement Rating
Our Rating:
4.624906985
28.01774505
Luther Burbank Corporation (XNAS:LBC) In-Depth Stock/Fundamental/Options Analysis Today
Primary Targets/Price Insights
Previous Close ($) :
LUTHER BURBANK CORPORATION (XNAS:LBC)
One Month Price Target:
Six Month Price Target :
$12.73
Likely Price in One Year's Time:
Ticker:
$12.97
Likely Trading Range Today Under (Normal Volatility)
$12.74
Price Upper limit ($) :
$13.26
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
P239
This week:
$12.03
This month :
$11.22
Other Primary facts
Market Cap:
51.07M
Market Cap Classification:
638.44M
Number of Shares
IPO Date:
A+
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
-12.08%
$9.76
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$14.32
12.5%
$11.04
$15.71
Medium risk (<10%) entry points
Buy Call
Sell Call
$13.57
Buy Put:
Sell Put:
$9.65
$11.79
$13.87
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
Banks�Regional
Sharpe Ratio:
LBC, is amongst the top 60% highest yielding stocks in terms of daily returns
Comparison:
1.23%
0.223394783
Sharpe ratio is 22.34% higher than the industry
Average Returns/Yield of
Banks�Regional
Daily returns:
1
Weekly returns:
0.05%
Monthly returns:
0.23%
Yearly returns:
11.26%
Comparison of returns:
0.032198665
Classification:
Average annual returns/yield (last 3 years) is 3.22% above industry average
Results of T-Test of Returns:
LBC is a riskier investment compared to Nasdaq (IXIC)
Statistical test of Returns:
0.65
Volatility (measured by Standard Deviation)
Daily Volatility:
& is -34.06% lower than the market/S&P 500 average
Weekly Volatility:
2.53%
Monthly Volatility:
5.67%
Yearly Volatility:
11.33%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
49.39%
-77.30%
Value at Risk Analysis (VaR)
Daily VaR:
Volatility in last five trading days has been -77.30% below long-term volatility
Weekly VaR:
-5.16%
Monthly VaR:
-11.53%
How Much Can the price of
Banks�Regional
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
Risk of crash in next 6/12 months: High (50-70%)
Worst case (decline):
$10.16
This translates to price declining to:
-20%
This translates to price declining to:
-79.89%
Severe Crash Probability
-23.06%
What is Value at Risk (VaR)?
Risk Fundamentals
39.44%
LBC is a 62.77% riskier investment compared to the market/S&P 500 & is 39.44% riskier than Nasdaq (IXIC)
LBC is a 62.77% riskier investment compared to the market/S&P 500
Beta Examination of
Banks�Regional
0.681
Expected beta in 1 year's time:
0.653
Expected beta in 3 year's time:
-
Unlevered (debt free) Beta:
Beta in relation to market/S&P 500--0.68
Beta in relation to Nasdaq (XNAS):
Returns are, approximately, symmetrical
Beta in relation to all global stocks::
Beta is -29.37% below industry average
Beta Comparison & Analysis
Beta of competitors/peers::
0.346
-0.395
Average Industry Beta:
Beta is -39.53% lower than peers
-0.293726309
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
WACC is -35.67% below industry mean WACC
12.69%
Alpha provided | Alpha Analysis
Alpha provided:
-
1.974
2.196
Analysis of Cost of Capital of
Banks�Regional
Equity cost of capital:
Alpha is 220% higher than market/& is unsustainably high
-0.199
Unlevered (without debt) cost of capital:
Equity cost of capital is -19.88% below industry mean WACC
Before-tax cost of debt:
3.97%
After-tax cost of debt:
5.62%
Overall debt rating:
4.44%
Weighted average cost of capital (WACC):
5.62%
-35.67%
Key Per-Share Metrics & Analysis
Revenue per share:
-
Revenue growth rate per share of (3Y):
Price to sales ratio is -15.12% below the industry mean
61.55%
EPS:
Ninety-One Million Five Hundred Thirteen Thousand Seven Hundred Fifty Dollars
Expected Annual growth rate of EPS (3Y):
Price to free cash flow ratio is -69.68% lower than the industry
108.11%
Free cash flow (FCF) per share:
Price to book ratio is -27.55% below the industry mean
-
-3.582475172
Debt per share
Debt repayment rate in last quarter: 9.92%
EBITDA per share
Each employee generates 189% more EBITDA than industry average revenue per employee
Valuation Analysis Today of
Banks�Regional
P/E Ratio:
Sustainable growth rate is 12.69% above industry average
P/E Ratio of Competitors/Peers:
6.96
-0.439430844
22.21146287
-0.429123598
$1.84
-
P/S (Price to Sales ratio):
$3.49
-0.151200135
P/B (Price to book value ratio):
Price to sales ratio is -15.12% below the industry mean
-
-0.696784084
Net income growth rate (3Y):
Annual revenue growth rate is 61.55% above the industry average
110.25%
Dividend Analysis
Net income growth rate is 110.25% higher than the average industry net income growth rate
Dividend payout rate: 6.75%
$0.12
Previous Dividend: $0.12
Previous adjusted dividend: $0.12
Previous Dividend: $0.48
Expected next dividend best case: $0.15
Expected next dividend worst case: $0.09
Average dividend payment (long-term): $0.08
Average dividend increase/decrease (growth rate) % per period: 10.78%
Expected next dividend payment date: 15/08/2022
Expected next dividend record date: 08/04/2022
Expected next dividend declaration date: 25/07/2022
Previous dividend payment date: 16/05/2022
Previous dividend record date: 05/06/2022
Dividend History:
Previous dividend declaration date: 26/04/2022
2022-02-03--$0.12
2021-08-05--$0.12
2022-05-05--$0.12
2021-11-04--$0.12
2021-05-06--$0.06
-0.54237837
In-depth Debt & Leverage Analysis
Debt to equity ratio:
113.81%
Net debt to equity ratio:
The remaining useful life of property plant & equipment is: 6.3 years
Debt to assets ratio:
10.47%
Net debt to assets ratio:
135.96%
-92.49%
Ability to repay debt:
Interest coverage ratio:
Debt-to-asset ratio is -92.49% below industry average
3.34
Looking forward:
Debt growth rate:
1.1x
-1902.38%
9.92%
Analysis of Key Statistics
Correlation of price movement with the market:
10.7330661
Statistical significance of correlation:
-0.38%
Average Correlation of the industry with the market:
0.38
-24.13%
R Squared (percentage of price movement explained by movement of the market):
0.38
Correlation of price movement with Nasdaq (^IXIC):
0.144
Covariance of price movement with the market:
0.009
Kurtosis
0.014
5.451
Skewness of returns:
Returns have moderate fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
0.161
Fundamental Analysis & Dupont Analysis of
Banks�Regional
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
Net profit margin is 44.43% higher than the industry
94.07%
Net Profit Margin Ratio:
-
Effective Tax Rate:
0.77%
0.345385926
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
Return on assets (ROA) is -44.85% lower than the industry
15.80%
Financial Leverage
Asset Turnover Ratio (ROA):
Operating profit margin is 94.07% higher than the industry
-44.85%
Financial Leverage:
Interest coverage ratio is 333.71% more than industry average
Current Ratio:
Return on equity (ROE) is 15.80% higher than the industry
-
Cash Conversion Cycle (days):
$17.78
-
-
Stock based compensation to net income ratio:
Equity growth rate per share is -358.25% lower than the industry
In-depth Efficiency Analysis
Revenue generated per employee:
-
0.672802832
EBITDA generated per employee:
Each employee generates 67% more revenue than industry average revenue per employee
1.891049662
Profit generated per employee:
$3.59
132%
Free cash flow (FCF) generated per employee:
Each employee generates 132% more net income/profit than industry average revenue per employee
0.485781714
Assets/Capital per employee
Each employee generates 49% more free cash flow than industry average revenue per employee
0.485781714
Research & Development (R&D) Analysis
-
-
Competitors/Peer firms of
Banks�Regional
$20.42
ZIONS BANCORPORATION, NATIONAL ASSOCIATION (XNAS:ZIONP)
FIRST FINANCIAL CORPORATION (XNAS:THFF)
OPORTUN FINANCIAL CORPORATION (XNAS:OPRT)
PEAPACK-GLADSTONE FINANCIAL CORPORATION (XNAS:PGC)
NEWTEK BUSINESS SERVICES CORP. (XNAS:NEWT)
CAMBRIDGE BANCORP (XNAS:CATC)
Khosla Ventures Acquisition Co III (XNAS:KVSC)
MONEYGRAM INTERNATIONAL, INC. (XNAS:MGI)
Current Analyst Ratings
$1.79
Strong buy�0%
Buy�0%
Hold�17%
Sell�0%
Strong sell�0%
Income Statement
Period:
3/31/2022
Date:
Value
Revenue:
TTM
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
178.41M
-
-
-
32.64M
33.71M
1.07M
-
-
227.83M
51.05M
2.51M
412%
37.67M
- 91065.00K
291%
37.67M
Statement of Cash Flow
Date:
Period:
22.94M
Differed Income Tax :
603.00K
Stock Based Compensation :
-
Change in Working Capital :
710.00K
Accounts Receivables:
7.22M
Other Working Capital:
35.00K
Other Non-Cash Items:
-
Net Cash Provided by Operating Activities:
3.35M
Investments in PP&E:
34.82M
Net Acquisitions:
- 103.00K
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
Value
3/31/2022
2022
Q1
147.96M
624.86M
772.82M
18.01M
-
-
-
15.59M
3.30M
-
639.77M
-
-
658.66M
7.92B
7.26B
153.00K
-
-
-
-
-
908.20M
-
908.20M
7.50B
6.59B
401.10M
278.86M
- 11958.0K
Value
-
-
668.00M
7.26B
1.26B
908.20M
- 33140.00K
38.33M
- 80621.00K
- 75539.00K
- 100000.00K
-
- 6512.00K
- 6225.00K
163.00M
50.27M
-
9.55M
147.96M
138.41M
34.82M
- 103.00K
Our Proprietary Portfolio Rating
Our Rating:
1749.744292
Price Forecast/Expected Price in Next 5 Years of
Banks�Regional
2023
2024
2025
2026
2027
17.07816241
$17.08
$17.86
$18.68
$19.53