Should I invest in Westamerica Bancorporation in short term?

Westamerica Bancorporation Revenue Per Employee is expected to significantly increase based on the last few years of reporting. The last year Revenue Per Employee was at 301,644. The current year Earnings Before Interest Taxes and Depreciation Amortization EBITDA is expected to grow to about 131.2 M, whereas Net Income Per Employee is expected to decline to about 103.3 K. Next fiscal quarter end is expected on March 31, 2020. As many investors are getting exited about Westamerica Bancorporation, it is fair to go over Westamerica Bancorporation. I will address the reasons why this entity was insulated from the current market uncertainty. Westamerica Bancorporation slowly supersedes market. The returns on the market and returns on Westamerica Bancorporation appear slightly correlated for the last few months. The appearance of strong basic indicators of the company suggests short term price swing for investors of the company. Macroaxis considers Westamerica Bancorporation to be very steady. Westamerica Bancorporation shows Sharpe Ratio of -0.002 which attests that the company had -0.002% of return per unit of risk over the last 1 month. Macroaxis philosophy towards determining 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. Westamerica Bancorporation exposes twenty-eight different technical indicators which can help you to evaluate volatility that cannot be diversified away. Please be advised to check out Westamerica Bancorporation Mean Deviation of 0.72 and Market Risk Adjusted Performance of (0.05) to validate risk estimate we provide.
Published over a year ago
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Reviewed by Raphi Shpitalnik

Westamerica Bancorporation average rating is Sell from 2 analysts. As of the 12th of February 2020 Westamerica Bancorporation maintains Market Risk Adjusted Performance of (0.05) and Mean Deviation of 0.72. Relative to Fundamental Indicators, Macroaxis technical analysis interface lets you check existing technical drivers of Westamerica Bancorporation as well as the relationship between them. Specifically you can use this information to find out if the organization will indeed mirror its model of past data patterns or the prices will eventually revert. We found nineteen technical drivers for Westamerica Bancorporation which can be compared to its rivals. Please check out Westamerica Bancorporation Value At Risk as well as the relationship between Semi Variance and Kurtosis to decide if Westamerica Bancorporation is priced fairly providing market reflects its latest price of 66.01 per share. Given that Westamerica Bancorporation has Jensen Alpha of (0.06), we strongly advise you confirm Westamerica Bancorporation prevalent market performance to make sure the company can sustain itself at future point.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of Westamerica Bancorporation. In general, sophisticated investors focus on analyzing Westamerica Bancorporation stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build Westamerica Bancorporation'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 Westamerica Bancorporation's intrinsic value. In addition to deriving basic predictive indicators for Westamerica Bancorporation, many experienced traders also check how macroeconomic factors affect Westamerica Bancorporation 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 Westamerica Bancorporation'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 Westamerica Bancorporation. Your research has to be compared to or analyzed against Westamerica Bancorporation's peers to derive any actionable benefits. When done correctly, Westamerica Bancorporation'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 Westamerica Bancorporation.

How important is Westamerica Bancorporation's Liquidity

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

Westamerica Bancorporation Gross Profit

Westamerica Bancorporation Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Westamerica Bancorporation previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Westamerica Bancorporation Gross Profit growth over the last 10 years. Please check Westamerica Bancorporation's gross profit and other fundamental indicators for more details.

Breaking down Westamerica Bancorporation Further

The small decline in market price for the last few months may raise some interest from investors as it closed today at a share price of 65.56 on 50858 in trading volume. The company management did not add much value to Westamerica Bancorporation investors in January. However, diversifying your holdings with Westamerica Bancorporation 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 1.0. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Westamerica Bancorporation discloses 7.43  in price to earnings to growth. Westamerica Bancorporation is selling at 66.01. That is 0.52 percent up. Opened at 66.01. Westamerica Bancorporation Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. The current value of Westamerica Bancorporation Earnings Before Interest Taxes and Depreciation Amortization USD is 131,192,621. Also, Westamerica Bancorporation Earnings Before Interest Taxes and Depreciation Amortization EBITDA is somewhat stable at the moment.
 2019 2020 (projected)
Net Income82.3 M80.39 M
Gross Profit209.27 M203.77 M
The bank offers demand deposits and interest and non-interest bearing time and savings deposits. Westamerica Bancorporation was founded in 1972 and is based in San Rafael, California. Westamerica Bancorporation is traded on BATS Exchange in USA.
Net IncomeGross Profit
To summarize, our analysis show that Westamerica Bancorporation Slowly supersedes market. The company is over valued and projects very small probability of distress for the next 2 years. Our up-to-date buy vs. sell advice on the company is Strong Hold.

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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 Westamerica Bancorporation. Please refer to our Terms of Use for any information regarding our disclosure principles.

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