| 2021 | 2022 (projected) | Consolidated Income | 31.14 M | 29.52 M | Direct Expenses | 20.64 M | 18.77 M |
Is Urstadt Biddle (USA Stocks:UBA) rise trustworthy given current volatility?
 | By Raphi Shpitalnik | Macroaxis Story |
16% of stocks are less volatile than Urstadt, and above 95% of all equities are expected to generate higher returns over the next 60 days. While some risk-loving traders are indifferent towards current market volatility, it is reasonable to go over the risk of investing in Urstadt Biddle Properties. We are going to analyze if the current expected returns justify Urstadt Biddle's volatility. Urstadt Biddle's very low volatility may have no significant impact on the stock's value as we estimate Urstadt Biddle as currently undervalued. The real value, based on our calculations, is getting close to 21.32 per share.
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Reviewed by Gabriel Shpitalnik
The company has 296.45 M in debt with debt to equity (D/E) ratio of 0.49, which is OK given its current industry classification. Urstadt Biddle Properties has a current ratio of 3.19, demonstrating that it is liquid and is capable to disburse its financial commitments when the payables are due. Debt can assist Urstadt Biddle until it has trouble settling it off, either with new capital or with free cash flow. So, Urstadt Biddle's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Urstadt Biddle Properties sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Urstadt to invest in growth at high rates of return. When we think about Urstadt Biddle's use of debt, we should always consider it together with cash and equity.Volatility is a rate at which the price of Urstadt Biddle or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Urstadt Biddle may increase or decrease. In other words, similar to Urstadt's beta indicator, it measures the risk of Urstadt Biddle and helps estimate the fluctuations that may happen in a short period of time. So if prices of Urstadt Biddle fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.
How important is Urstadt Biddle's Liquidity
Urstadt Biddle financial leverage refers to using borrowed capital as a funding source to finance Urstadt Biddle Properties ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Urstadt Biddle financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Urstadt Biddle's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Urstadt Biddle's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Urstadt Biddle's total debt and its cash.
Breaking down Urstadt Biddle Further
The entity reported the last year's revenue of 135.58 M. Total Income to common stockholders was 50.93 M with profit before taxes, overhead, and interest of 89.33 M.
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This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Urstadt Biddle Properties. Please refer to our Terms of Use for any information regarding our disclosure principles.