First Citizens Operating Margin vs. Cash And Equivalents
| FCNCA Stock | USD 2,087 12.03 0.58% |
First Citizens Operating Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.76 | 0.5366 |
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| Net Profit Margin | 1.58 | 1.5079 |
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| Operating Profit Margin | 0.46 | 0.4381 |
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| Pretax Profit Margin | 1.67 | 1.5882 |
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| Return On Assets | 0.0563 | 0.0536 |
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| Return On Equity | 0.57 | 0.5394 |
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For First Citizens profitability analysis, we use financial ratios and fundamental drivers that measure the ability of First Citizens to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well First Citizens BancShares utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between First Citizens's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of First Citizens BancShares over time as well as its relative position and ranking within its peers.
First |
First Citizens' Revenue Breakdown by Earning Segment
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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 First Citizens. If investors know First 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 First Citizens 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 (0.14) | Dividend Share 6.56 | Earnings Share 174.67 | Revenue Per Share 646.115 | Quarterly Revenue Growth (0.03) |
The market value of First Citizens BancShares is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Citizens' value that differs from its market value or its book value, called intrinsic value, which is First Citizens' 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 First Citizens' market value can be influenced by many factors that don't directly affect First Citizens' 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 First Citizens' value and its price as these two are different measures arrived at by different means. Investors typically determine if First Citizens is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Citizens' 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.
First Citizens BancShares Cash And Equivalents vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining First Citizens's current stock value. Our valuation model uses many indicators to compare First Citizens value to that of its competitors to determine the firm's financial worth. First Citizens BancShares is one of the top stocks in operating margin category among its peers. It is rated # 5 in cash and equivalents category among its peers creating about 17,233,888,487 of Cash And Equivalents per Operating Margin. At present, First Citizens' Operating Profit Margin is projected to increase slightly based on the last few years of reporting. 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 First Citizens' earnings, one of the primary drivers of an investment's value.First Cash And Equivalents vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
First Citizens |
| = | 0.41 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Cash or Cash Equivalents are the most liquid of all assets found on the company's balance sheet. It is used in calculating many of the firm's liquidity ratios and is a good indicator of the overall financial health of a company. Companies with a lot of cash are usually attractive takeover targets. Cash Equivalents are balance sheet items that are typically reported using currency printed on notes.
First Citizens |
| = | 7.14 B |
Cash equivalents represent current assets that are easily convertible to cash such as short term bonds, savings account, money market funds, or certificate of deposits (CDs). One of the important consideration companies make when classifying assets as cash equivalent is that investments they report on their balance sheets under current assets should have almost no risk of change in value over the next few months (usually three months).
First Cash And Equivalents Comparison
First Citizens is currently under evaluation in cash and equivalents category among its peers.
First Citizens Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in First Citizens, profitability is also one of the essential criteria for including it into their portfolios because, without profit, First Citizens will eventually generate negative long term returns. The profitability progress is the general direction of First Citizens' change in net profit over the period of time. It can combine multiple indicators of First Citizens, 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 | -491 M | -466.4 M | |
| Operating Income | 3.3 B | 3.5 B | |
| Income Before Tax | 12.1 B | 12.7 B | |
| Total Other Income Expense Net | 8.7 B | 9.2 B | |
| Net Income | 11.5 B | 12 B | |
| Income Tax Expense | 611 M | 641.5 M | |
| Net Income Applicable To Common Shares | 1.2 B | 1.3 B | |
| Net Income From Continuing Ops | 11.2 B | 11.8 B | |
| Net Interest Income | 5.6 B | 5.9 B | |
| Interest Income | 8.3 B | 8.7 B | |
| Non Operating Income Net Other | 23.9 M | 21.2 M | |
| Change To Netincome | 1.1 B | 1.1 B | |
| Net Income Per Share | 789.24 | 828.70 | |
| Income Quality | 0.23 | 0.22 | |
| Net Income Per E B T | 0.95 | 0.54 |
First Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on First Citizens. 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 First Citizens 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 First Citizens' important profitability drivers and their relationship over time.
Use First Citizens 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 First Citizens 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 First Citizens will appreciate offsetting losses from the drop in the long position's value.First Citizens Pair Trading
First Citizens BancShares Pair Trading Analysis
The ability to find closely correlated positions to First Citizens could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Citizens 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 First Citizens - 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 First Citizens BancShares to buy it.
The correlation of First Citizens 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 First Citizens moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Citizens 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 First Citizens 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 First Citizens position
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To fully project First Citizens' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of First Citizens 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 First Citizens' income statement, its balance sheet, and the statement of cash flows.