ArrowMark Financial Corp. (BANX) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 9.66%
• Average Volume (3M): 10.31K
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.28
• Revenue Growth: -25.90%
• EPS Growth: 4.97%
• Country: US
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.44
• Shares Outstanding: 7,128,872
• 10 Day Avg. Volume: 11,735
• 30 Day Avg. Volume: 10,308
• PEG Ratio: -0.52
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 5.07
• P/FCF Ratio: 10.85
• Enterprise Value/Market Cap: 10.00T>
• Enterprise Value/Revenue: 9.54
• Enterprise Value/Gross Profit: 13.35
• Enterprise Value/Ebitda: 8.14
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: $22.50 ▲(3.54% Upside)

ArrowMark Financial Corp. scores a 62, driven primarily by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation. However, financial performance challenges, particularly in revenue stability and EBIT, along with neutral technical indicators, moderate the overall score.

Positive Factors

Strong Equity Base

A strong equity base with no debt reduces financial risk, providing stability and flexibility in operations and strategic initiatives.

Effective Cash Management

Effective cash management ensures the company can fund operations and investments without relying on external financing, supporting long-term growth.

Specialization in Alternative Investments

Specializing in alternative investments can attract a diverse client base, enhancing revenue potential and providing a competitive edge in niche markets.

Negative Factors

Revenue Instability

Unstable revenue growth indicates challenges in maintaining consistent income streams, which can impact long-term financial performance and investor confidence.

Volatile EBIT Performance

Volatile EBIT performance suggests operational inefficiencies, potentially affecting profitability and the ability to reinvest in business growth.

Inconsistent Operational Cash Generation

Inconsistent cash generation can hinder the company's ability to sustain operations and invest in growth, posing a risk to financial stability.

ArrowMark Financial Corp. Business Overview & Revenue Model

Company Description

ArrowMark Financial Corp. (BANX) is a diversified financial services company that focuses on providing investment management and advisory services. The company operates primarily in the asset management sector, catering to a wide range of clients, including individuals, institutions, and family offices. ArrowMark specializes in alternative investment strategies, including private credit, equity, and other specialized investment vehicles, aiming to generate attractive risk-adjusted returns for its investors.

How the Company Makes Money

ArrowMark Financial Corp. generates revenue through multiple channels, primarily from management fees and performance-based incentives on the assets it manages. The company charges a percentage of the assets under management (AUM) as a management fee, which provides a steady income stream. Additionally, ArrowMark may earn performance fees based on the returns generated for its clients that exceed predefined benchmarks. The company also engages in strategic partnerships with various financial institutions and investment firms, enhancing its investment capabilities and expanding its market reach, which contributes to its overall earnings. The firm leverages its expertise in alternative investments to attract a diverse client base, thereby increasing its revenue potential.

ArrowMark Financial Corp. Financial Statement Overview

Summary

ArrowMark Financial Corp. shows a mixed financial performance. The company benefits from a strong equity base and effective cash management, but faces challenges with revenue stability and EBIT performance. The lack of debt is a positive, but recent income fluctuations and negative EBIT highlight operational challenges.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.51M	29.47M	28.68M	21.53M	17.36M	16.65M
Gross Profit	14.67M	29.47M	28.68M	21.53M	17.36M	16.65M
EBITDA	24.05M	23.39M	22.58M	15.65M	12.21M	11.76M
Net Income	19.56M	16.74M	20.25M	5.37M	12.63M	7.78M
Balance Sheet
Total Assets	224.44M	208.21M	203.70M	208.50M	218.74M	188.36M
Cash, Cash Equivalents and Short-Term Investments	17.93M	2.66M	807.31K	3.84M	83.78K	2.28M
Total Debt	64.50M	46.80M	45.00M	55.60M	60.00M	43.00M
Total Liabilities	66.02M	53.11M	51.26M	60.84M	65.24M	47.57M
Stockholders Equity	158.41M	155.10M	152.44M	147.66M	153.50M	140.79M
Cash Flow
Free Cash Flow	2.59M	13.78M	15.10M	15.84M	-19.85M	-13.20M
Operating Cash Flow	2.59M	13.78M	15.10M	15.84M	-19.85M	-13.20M
Investing Cash Flow	-800.22K	-3.30M	7.51M	-2.80M	-41.04M	-10.37M
Financing Cash Flow	6.11M	-11.56M	-25.64M	-15.53M	17.65M	15.44M

ArrowMark Financial Corp. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 21.73 is above the 20-day moving average (MA) of 21.25, above the 50-day MA of 21.56, and above the 200-day MA of 20.29, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 58.40 is Neutral, neither overbought nor oversold. The STOCH value of 76.82 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GLAD	70 Neutral	$476.94M	8.37	11.86%	10.82%	41.12%	-40.68%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WHF	67 Neutral	$167.35M	16.97	3.51%	23.33%	-55.82%	-4.97%
BANX	62 Neutral	―	7.92	12.54%	9.66%	-25.90%	4.97%
TCPC	58 Neutral	$501.41M	―	-1.15%	22.98%	-91.81%	78.46%
MRCC	54 Neutral	$137.58M	―	-2.25%	15.75%	-34.92%	-132.22%
PNNT	48 Neutral	$395.69M	12.09	6.83%	15.84%	-3.09%	200.66%