Make it or break it for Chemical Financial in 2019

In this post I will go over Chemical Financial. I will cover the possibilities of making Chemical Financial into a steady grower in June. We consider Chemical Financial not too volatile. Chemical Financial secures Sharpe Ratio (or Efficiency) of 0.0289 which signifies that the organization had 0.0289% of return per unit of standard deviation over the last 1 month. Our philosophy in foreseeing volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for Chemical Financial Corporation which you can use to evaluate future volatility of the firm. Please confirm Chemical Financial Risk Adjusted Performance of 0.0274 and Mean Deviation of 1.5 to double-check if risk estimate we provide are consistent with the epected return of 0.0543%.
Published over a year ago
View all stories for Chemical Financial | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Gabriel Shpitalnik

Chemical Financial has performance score of 1 on a scale of 0 to 100. The firm shows Beta (market volatility) of 1.7732 which signifies that as market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, Chemical Financial will likely underperform. Although it is extremely important to respect Chemical Financial historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy in foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance including all available fundamental and technical indicators. By analyzing Chemical Financial technical indicators you can presently evaluate if the expected return of 0.0543% will be sustainable into the future. Chemical Financial right now shows a risk of 1.8809%. Please confirm Chemical Financial Jensen Alpha, Maximum Drawdown and the relationship between Coefficient Of Variation and Sortino Ratio to decide if Chemical Financial will be following its price patterns.

How important is Chemical Financial's Liquidity

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

What is driving Chemical Financial Investor Appetite?

The company currently holds 2.26B in liabilities with Debt to Equity (D/E) ratio of 8.04 indicating the stock may have difficulties to generate enough cash to satisfy its financial obligations. The current investor indifference towards the small price fluctuations of Chemical Financial could raise concerns from investors as the firm closed today at a share price of 39.6 on 217766 in volume. The company executives did not add any value to Chemical Financial investors in April. However, most investors can still diversify their portfolios with Chemical Financial to hedge your portfolio against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.8809. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. Chemical Financial maintains retained earnings of 281.56m. Chemical Financial is trading at 39.81. This is 0.40% increase. Opened at 39.81. Chemical Financial Market Capitalization is increasing over the last 5 years. The previous year value of Chemical Financial Market Capitalization was 2,840,000,000. Also, Chemical Financial Net Cash Flow from Financing is increasing over the last 5 years. The previous year value of Chemical Financial Net Cash Flow from Financing was 210,186,105.
 2013 2014 2015 2018 2019 (projected)
Chemical Financial Net Income 56,808,000  62,121,000  86,830,000  78,147,000  275,220,000 
Chemical Financial Gross Profit 246,056,000  269,546,000  347,724,000  312,951,600  737,840,000 
To sum up, our concluding buy vs hold vs sell advice on the company is Strong Hold. Chemical Financial is currently undervalued with close to average odds of distress for the next two years.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

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 Chemical Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com