Should I invest in UMB Financial in short term?

Today I will digest UMB Financial. I will evaluate why we are still optimistic in anticipation of a recovery. UMB Financial responds to market. The company returns are highly-related to returns on the market. As market moves, the company is expected to follow. The appearance of sound fundamental drivers of the firm indicates shorter-term price swing for shareholders of the firm. Macroaxis considers UMB Financial to be very steady. UMB Financial retains Efficiency (Sharpe Ratio) of -0.0017 which indicates the firm had -0.0017% of return per unit of volatility over the last 1 month. Macroaxis approach towards measuring risk of any stock is to look at both systematic and un-systematic factors of the business, including all available market data and technical indicators. UMB Financial exposes twenty-one different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to validate UMB Financial Corporation Risk Adjusted Performance of (0.01409) to confirm risk estimate we provide.
Published over a year ago
View all stories for UMB Financial | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Raphi Shpitalnik

The company average rating is Hold from 6 analysts. As of 12 of October UMB Financial owns Risk Adjusted Performance of (0.01409). In relation to Fundamental Indicators, Macroaxis technical analysis interface makes it possible for you to check practical technical drivers of UMB Financial as well as the relationship between them. Strictly speaking you can use this information to find out if the company will indeed mirror its model of historical prices and volume patterns or the prices will eventually revert. We found nineteen technical drivers for UMB Financial which can be compared to its peers in the sector. Please validate UMB Financial Coefficient Of Variation, Maximum Drawdown, Skewness, as well as the relationship between Information Ratio and Downside Variance to decide if UMB Financial Corporation is priced more or less accurately providing market reflects its prevailing price of 63.54 per share. Given that UMB Financial has Jensen Alpha of 0.0149, we advise you double-check UMB Financial latest market performance to make sure the company can sustain itself at some point future time.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of UMB Financial. In general, sophisticated investors focus on analyzing UMB Financial stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build UMB Financial's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of UMB Financial's intrinsic value. In addition to deriving basic predictive indicators for UMB Financial, many experienced traders also check how macroeconomic factors affect UMB Financial price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of UMB Financial's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as UMB Financial. Your research has to be compared to or analyzed against UMB Financial's peers to derive any actionable benefits. When done correctly, UMB Financial's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in UMB Financial.

How important is UMB Financial's Liquidity

UMB Financial financial leverage refers to using borrowed capital as a funding source to finance UMB Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. UMB Financial 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 UMB Financial'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 UMB Financial'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 UMB Financial's total debt and its cash.

Breaking down UMB Financial Further

The small decline in market price for the last few months has created some momentum for investors as it was traded today as low as 63.53 and as high as 65.03 per share. The company executives did not add much value to UMB Financial investors in September. However, diversifying your holdings with UMB Financial or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.5745. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. UMB Financial preserves 4.01  of earnings per share. UMB Financial is selling for under 63.54. That is 1.00% increase. Day high is 65.03. UMB Financial Accumulated Other Comprehensive Income is rather stable at the moment. Also, UMB Financial Price to Book Value is increasing over the last 4 years.
 2018 2019 (projected)
UMB Financial Net Income 195,513,000  198,010,000 
UMB Financial Gross Profit 845,008,200  941,390,000 
On the whole, our analysis show that UMB Financial Responds to market. The firm is undervalued and projects odds of financial turmoil close to average for the next 2 years. Our current buy vs. sell advice on the firm is Strong Hold.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Rifka Kats do not own shares of UMB Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com