Foreign Trade Bank's stock presents an intriguing opportunity for investors looking to tap into the financial services sector. With a market capitalization of $1.2 billion and a price-to-book ratio of 0.95x, the stock appears undervalued compared to its book value of $34.35 per share. Despite a high probability of bankruptcy at 60.93%, the bank's robust operating margin of 73.69% and a net income from continuing operations of $150.8 million suggest a resilient core business. The forward dividend yield of 6.13% offers an attractive income stream, while the enterprise value of $3.3 billion underscores its substantial market presence. However, potential investors should weigh these factors against the bank's debt-to-equity ratio of 7.53%, which indicates a significant level of leverage. While many millennials are steering clear of the financial services sector, it's worth taking a closer look at Foreign Trade Bank to understand its current market dynamics. Let's explore why this year might be promising for its shareholders. Is the company's current valuation reasonable? We'll delve into Foreign Trade Bank's valuation to provide you with a clearer perspective on whether investing in this stock could be a smart move.
We determine the current worth of Foreign Trade Bank using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Foreign Trade Bank based exclusively on its
fundamental and basic
technical indicators. By analyzing Foreign Trade's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Foreign Trade's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Foreign Trade. We calculate exposure to Foreign Trade's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Foreign Trade's related companies.
Foreign Trade Bank Investment Alerts
Foreign investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Foreign Trade Bank performance across your portfolios.Please check all
investment alerts for Foreign
Foreign Trade Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Foreign value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Foreign Trade competition to find
correlations between indicators driving the intrinsic value of Foreign.
Foreign Trade Gross Profit
Foreign Trade Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Foreign Trade 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 Foreign Trade Gross Profit growth over the last 10 years. Please check Foreign Trade's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Foreign Trade Bank
The entity reported the last year's revenue of 712.2
M. Total Income to common stockholders was 166.16
M with profit before taxes, overhead, and interest of 143.7
M.
Margins Breakdown
Foreign profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Foreign Trade itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Foreign Trade profit margins.
0.22
Operating Profit Margin
| Pretax Profit Margin | 0.26 |
| Operating Profit Margin | 0.22 |
| Net Profit Margin | 0.22 |
| Gross Profit Margin | 1.09 |
Foreign Trade Market Cap is fairly stable at the moment.
Further, Foreign Trade Price To Sales Ratio is fairly stable at the moment. The stock market is filled with individuals who know the price of everything, but the value of nothing, said Oscar Wilde, and this sentiment rings true for Foreign Trade Bank stock. With a price-to-book ratio of 0.95X, the stock appears undervalued, suggesting a potential opportunity for investors to capitalize on its intrinsic worth. Despite a modest operating margin of 0.74%, the bank's robust net asset base of $10.74 billion underscores its financial stability. Coupled with a forward dividend yield of 6.13%, this stock could be a hidden gem for those seeking value in the regional banking sector..
Foreign Trade has 69 percent chance to slide below $32 in 30 days
Foreign Trade Bank's stock is currently facing some challenges, with a maximum drawdown of 5.52, indicating a significant drop from its recent peaks. This decline might suggest further downward movement, as there's a 69% chance the stock could fall below $32 in the next month. Investors should tread carefully, keeping a close eye on market conditions and considering protective measures. Despite its relatively low volatility, with a skewness of -0.59 and kurtosis of 1.54, understanding these metrics can help investors make informed decisions. During bearish trends, increased volatility can affect the stock price, causing stress for investors.
This often leads to portfolio adjustments, as investors seek to mitigate risk by diversifying their holdings when prices decline.As we look toward 2024, Foreign Trade Bank's stock (BLX) presents a compelling yet cautious opportunity for investors. With analysts suggesting a possible upside price of 33.71, there's potential for growth, but it's crucial to weigh this against the downside risk at 30.6. The strong buy consensus indicates optimism among analysts, yet it's essential for investors to stay informed and monitor market dynamics closely. As the fiscal year ends in December, keep an eye on year-end financial results, which could provide more clarity on the company's trajectory. With the highest estimated target price reaching 35.66, BLX could offer attractive returns, but as always, balancing risk and reward is key in making informed investment decisions..
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Aina Ster is a Member of Macroaxis Editorial Board. Aina delivers weekly perspective on ongoing market and economic trends, analysis and tips from predictive analysis to forecasting across various financial instruments.
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