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ArrowMark Financial Corp. (BANX)
NASDAQ:BANX

ArrowMark Financial Corp. (BANX) AI Stock Analysis

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ArrowMark Financial Corp.

(NASDAQ:BANX)

Rating:63Neutral
Price Target:
ArrowMark Financial Corp.'s overall stock score reflects a mix of strengths and challenges. The strong valuation suggests potential for income-focused investors, but financial performance concerns and neutral technical indicators moderate the outlook. Improvement in revenue stability and operational efficiency could enhance the stock's appeal.

ArrowMark Financial Corp. (BANX) vs. SPDR S&P 500 ETF (SPY)

ArrowMark Financial Corp. Business Overview & Revenue Model

Company DescriptionStoneCastle Financial Corp. is a closed ended balanced mutual fund launched and managed by StoneCastle Asset Management LLC. It invests in public equity markets of the United States. The fund invests in stocks of companies operating across the banking sector. It invests in dividend paying growth and value stocks of companies. For its fixed income portion, the fund invests in subordinated debt securities which are rated BBB- or better by Kroll Ratings. The fund employs fundamental analysis with bottom-up security picking approach by focusing on factors such as review of historical and prospective financial information, interviews with management and key employees of the prospective bank, financial models and projections, changes in interest rates, changes in unemployment rates, changes in home prices, changes in economic activity to create its portfolio. It employs proprietary research to create its portfolio. StoneCastle Financial Corp. was formed on February 7, 2013 and is domiciled in the United States.
How the Company Makes MoneyArrowMark Financial Corp. makes money primarily through the investment income generated from its portfolio of securities. This includes interest income from debt securities and dividend income from equity investments in financial services companies. Additionally, the company may realize capital gains from the sale of securities within its portfolio. Key revenue streams are derived from the performance of its investments, as well as any management fees it may receive if applicable. The company's earnings are significantly influenced by market conditions and the financial performance of the entities in which it invests.

ArrowMark Financial Corp. Financial Statement Overview

Summary
ArrowMark Financial Corp. shows a mixed financial performance. The income statement is challenged by fluctuating revenue and negative EBIT in 2024, despite a strong equity position and effective cash management. The balance sheet benefits from no debt, enhancing stability, but cash flow inconsistencies highlight operational challenges.
Income Statement
45
Neutral
ArrowMark Financial Corp. shows a mixed performance on its income statement. The gross profit margin remains consistent, but the net profit margin has fluctuated significantly due to volatile EBIT results, especially with a negative EBIT in 2024. Revenue growth has been unstable, with recent declines suggesting challenges in maintaining revenue streams. Despite past profitability, recent EBIT losses highlight the need for operational improvements.
Balance Sheet
70
Positive
The balance sheet indicates a strong equity position with no debt as of 2024, which reduces financial risk. The equity ratio has been stable, reflecting a solid asset base. Return on equity has been strong in previous years, although recent income fluctuations could impact future returns. The company's ability to operate without leverage in 2024 is a positive sign.
Cash Flow
60
Neutral
Cash flow analysis presents a robust free cash flow in 2024, showing effective cash management. However, the fluctuating operating cash flow relative to net income indicates inconsistent operational cash generation. Significant changes in financing cash flows suggest potential volatility in financing activities, though the maintenance of positive free cash flow is encouraging.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue0.0019.65M23.25M7.86M14.24M9.85M
Gross Profit0.0019.65M19.48M3.74M10.65M6.63M
EBITDA0.0021.20M22.16M7.70M12.63M8.73M
Net Income0.0016.74M20.25M5.37M12.63M7.78M
Balance Sheet
Total Assets0.00208.21M203.70M208.50M218.74M188.36M
Cash, Cash Equivalents and Short-Term Investments0.002.66M807.31K369.65K72.89K358.06K
Total Debt0.000.0045.00M55.60M60.00M43.00M
Total Liabilities0.0053.11M51.26M60.84M65.24M47.57M
Stockholders Equity0.00155.10M152.44M147.66M153.50M140.79M
Cash Flow
Free Cash Flow0.0013.78M15.10M15.84M-19.85M-13.20M
Operating Cash Flow0.0013.78M15.10M15.84M-19.85M-13.20M
Investing Cash Flow0.000.007.51M-2.80M-41.04M-10.37M
Financing Cash Flow0.00-11.56M-25.64M-15.53M17.65M15.44M

ArrowMark Financial Corp. Technical Analysis

Technical Analysis Sentiment
Positive
Last Price20.93
Price Trends
50DMA
19.92
Positive
100DMA
19.92
Positive
200DMA
19.61
Positive
Market Momentum
MACD
0.30
Negative
RSI
68.41
Neutral
STOCH
64.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BANX, the sentiment is Positive. The current price of 20.93 is above the 20-day moving average (MA) of 20.19, above the 50-day MA of 19.92, and above the 200-day MA of 19.61, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 68.41 is Neutral, neither overbought nor oversold. The STOCH value of 64.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BANX.

ArrowMark Financial Corp. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$230.49M11.688.67%13.46%
SASAR
68
Neutral
$359.54M12.237.36%12.15%-24.05%28.25%
64
Neutral
$6.69B10.886.59%5.05%24.95%-1.55%
63
Neutral
8.8710.89%8.63%27.54%-17.41%
59
Neutral
$280.42M7.5310.68%17.22%22.53%
56
Neutral
$297.93M5.9318.18%6.72%21.99%23.40%
45
Neutral
$191.71M-9.96%90.08%-893.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BANX
ArrowMark Financial Corp.
20.93
4.23
25.33%
NEWT
Newtek Business
11.28
-0.46
-3.92%
SSSS
SuRo Capital
8.21
4.26
107.85%
SAR
Saratoga Investment
24.80
5.16
26.27%
TPVG
TriplePoint Venture Growth
7.01
0.07
1.01%
LIEN
Chicago Atlantic BDC
10.35
-0.02
-0.19%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 03, 2025