BankFinancial Debt
| BFIN Stock | USD 13.38 0.15 1.13% |
BankFinancial has over 44.68 Million in debt which may indicate that it relies heavily on debt financing. At this time, BankFinancial's Short and Long Term Debt Total is very stable compared to the past year. As of the 1st of December 2024, Interest Debt Per Share is likely to grow to 4.72, though Net Debt is likely to grow to (127.1 M). With a high degree of financial leverage come high-interest payments, which usually reduce BankFinancial's Earnings Per Share (EPS).
Asset vs Debt
Equity vs Debt
BankFinancial's liquidity is one of the most fundamental aspects of both its future profitability and its ability to meet different types of ongoing financial obligations. BankFinancial's cash, liquid assets, total liabilities, and shareholder equity can be utilized to evaluate how much leverage the Company is using to sustain its current operations. For traders, higher-leverage indicators usually imply a higher risk to shareholders. In addition, it helps BankFinancial Stock's retail investors understand whether an upcoming fall or rise in the market will negatively affect BankFinancial's stakeholders.
For most companies, including BankFinancial, marketable securities, inventories, and receivables are the most common assets that could be converted to cash. However, for BankFinancial, the most critical issue when managing liquidity is ensuring that current assets are properly aligned with current liabilities. If they are not, BankFinancial's management will need to obtain alternative financing to ensure there are always enough cash equivalents on the balance sheet to meet obligations.
Price Book 1.0479 | Book Value 12.769 | Operating Margin 0.2157 | Profit Margin 0.1457 | Return On Assets 0.0054 |
BankFinancial |
BankFinancial Bond Ratings
BankFinancial financial ratings play a critical role in determining how much BankFinancial have to pay to access credit markets, i.e., the amount of interest on their issued debt. The threshold between investment-grade and speculative-grade ratings has important market implications for BankFinancial's borrowing costs.| Piotroski F Score | 6 | Healthy | View |
| Beneish M Score | (2.83) | Unlikely Manipulator | View |
BankFinancial Debt to Cash Allocation
As BankFinancial follows its natural business cycle, the capital allocation decisions will not magically go away. BankFinancial's decision-makers have to determine if most of the cash flows will be poured back into or reinvested in the business, reserved for other projects beyond operational needs, or paid back to stakeholders and investors.
BankFinancial currently holds 44.68 M in liabilities with Debt to Equity (D/E) ratio of 6.12, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Note, when we think about BankFinancial's use of debt, we should always consider it together with its cash and equity.BankFinancial Total Assets Over Time
BankFinancial Assets Financed by Debt
The debt-to-assets ratio shows the degree to which BankFinancial uses debt to finance its assets. It includes both long-term and short-term borrowings maturing within one year. It also includes both tangible and intangible assets, such as goodwill.BankFinancial Debt Ratio | 5.74 |
BankFinancial Corporate Bonds Issued
BankFinancial Short Long Term Debt Total
Short Long Term Debt Total |
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Understaning BankFinancial Use of Financial Leverage
Leverage ratios show BankFinancial's total debt position, including all outstanding obligations. In simple terms, high financial leverage means that the cost of production, along with the day-to-day running of the business, is high. Conversely, lower financial leverage implies lower fixed cost investment in the business, which is generally considered a good sign by investors. The degree of BankFinancial's financial leverage can be measured in several ways, including ratios such as the debt-to-equity ratio (total debt / total equity), or the debt ratio (total debt / total assets).
| Last Reported | Projected for Next Year | ||
| Short and Long Term Debt Total | 44.7 M | 68.1 M | |
| Net Debt | -133.8 M | -127.1 M | |
| Long Term Debt | 44.7 M | 27.8 M | |
| Short Term Debt | 31.1 M | 21.6 M | |
| Long Term Debt Total | 22.6 M | 21.6 M | |
| Net Debt To EBITDA | (3.59) | (3.77) | |
| Debt To Equity | 0.29 | 0.27 | |
| Interest Debt Per Share | 4.67 | 4.72 | |
| Debt To Assets | 0.03 | 0.06 | |
| Long Term Debt To Capitalization | 0.22 | 0.25 | |
| Total Debt To Capitalization | 0.22 | 0.26 | |
| Debt Equity Ratio | 0.29 | 0.27 | |
| Debt Ratio | 0.03 | 0.06 | |
| Cash Flow To Debt Ratio | 0.21 | 0.20 |
Pair Trading with BankFinancial
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 BankFinancial 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 BankFinancial will appreciate offsetting losses from the drop in the long position's value.Moving together with BankFinancial Stock
| 0.73 | AX | Axos Financial | PairCorr |
| 0.71 | BY | Byline Bancorp Fiscal Year End 23rd of January 2025 | PairCorr |
| 0.65 | KB | KB Financial Group | PairCorr |
Moving against BankFinancial Stock
| 0.6 | TFC-PO | Truist Financial | PairCorr |
| 0.52 | CFG-PE | Citizens Financial | PairCorr |
| 0.51 | TFC-PR | Truist Financial | PairCorr |
The ability to find closely correlated positions to BankFinancial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BankFinancial 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 BankFinancial - 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 BankFinancial to buy it.
The correlation of BankFinancial 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 BankFinancial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BankFinancial 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 BankFinancial 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.Check out the analysis of BankFinancial Fundamentals Over Time. To learn how to invest in BankFinancial Stock, please use our How to Invest in BankFinancial guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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 BankFinancial. If investors know BankFinancial 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 BankFinancial 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 (0.15) | Dividend Share 0.4 | Earnings Share 0.63 | Revenue Per Share 4.355 | Quarterly Revenue Growth (0.10) |
The market value of BankFinancial is measured differently than its book value, which is the value of BankFinancial that is recorded on the company's balance sheet. Investors also form their own opinion of BankFinancial's value that differs from its market value or its book value, called intrinsic value, which is BankFinancial'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 BankFinancial's market value can be influenced by many factors that don't directly affect BankFinancial'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 BankFinancial's value and its price as these two are different measures arrived at by different means. Investors typically determine if BankFinancial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BankFinancial'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.
What is Financial Leverage?
Financial leverage is the use of borrowed money (debt) to finance the purchase of assets with the expectation that the income or capital gain from the new asset will exceed the cost of borrowing. In most cases, the debt provider will limit how much risk it is ready to take and indicate a limit on the extent of the leverage it will allow. In the case of asset-backed lending, the financial provider uses the assets as collateral until the borrower repays the loan. In the case of a cash flow loan, the general creditworthiness of the company is used to back the loan. The concept of leverage is common in the business world. It is mostly used to boost the returns on equity capital of a company, especially when the business is unable to increase its operating efficiency and returns on total investment. Because earnings on borrowing are higher than the interest payable on debt, the company's total earnings will increase, ultimately boosting stockholders' profits.Leverage and Capital Costs
The debt to equity ratio plays a role in the working average cost of capital (WACC). The overall interest on debt represents the break-even point that must be obtained to profitability in a given venture. Thus, WACC is essentially the average interest an organization owes on the capital it has borrowed for leverage. Let's say equity represents 60% of borrowed capital, and debt is 40%. This results in a financial leverage calculation of 40/60, or 0.6667. The organization owes 10% on all equity and 5% on all debt. That means that the weighted average cost of capital is (.4)(5) + (.6)(10) - or 8%. For every $10,000 borrowed, this organization will owe $800 in interest. Profit must be higher than 8% on the project to offset the cost of interest and justify this leverage.Benefits of Financial Leverage
Leverage provides the following benefits for companies:- Leverage is an essential tool a company's management can use to make the best financing and investment decisions.
- It provides a variety of financing sources by which the firm can achieve its target earnings.
- Leverage is also an essential technique in investing as it helps companies set a threshold for the expansion of business operations. For example, it can be used to recommend restrictions on business expansion once the projected return on additional investment is lower than the cost of debt.