ArrowMark Financial Corp. (BANX) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 9.95%
• Average Volume (3M): 17.00K
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.26
• 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: 7,126,812
• 10 Day Avg. Volume: 26,569
• 30 Day Avg. Volume: 17,000
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: 9.14
• Enterprise Value/Gross Profit: 12.79
• Enterprise Value/Ebitda: 7.80
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 63 Neutral
• 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. Business Overview & Revenue Model

Company Description

StoneCastle 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 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 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

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: 21.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 21.11 is above the 20-day moving average (MA) of 20.74, above the 50-day MA of 20.74, and above the 200-day MA of 20.04, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 61.40 is Neutral, neither overbought nor oversold. The STOCH value of 85.04 is Negative, 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
LIEN	75 Outperform	$245.78M	10.43	12.44%	11.79%	―	―
Sector *	68 Neutral	$17.80B	11.87	10.23%	3.74%	9.69%	1.18%
SAR	68 Neutral	$359.54M	10.03	9.27%	13.43%	-1.64%	104.07%
NEWT	66 Neutral	$316.65M	6.01	18.20%	6.32%	18.36%	17.28%
BANX	63 Neutral		7.69	12.54%	9.95%	-25.90%	4.97%
TPVG	59 Neutral	$275.41M	6.63	11.78%	17.57%	377.90%	―
SSSS	45 Neutral	$206.63M	4.46	29.40%	2.89%	168.31%	―