| 2008 | 2009 | 2018 | 2019 (projected) | First Midwest Net Income | 92,778,000 | 90,150,000 | 103,672,500 | 169,010,000 | First Midwest Gross Profit | 273,119,000 | 270,335,000 | 243,301,500 | 613,360,000 |
Will First Midwest continue to eat your money?
 | By Ellen Johnson | Macroaxis Story |
This feature is directed to investors considering to exit their positions in First Midwest. I will examine why in spite of prevalent disturbance, the overall long-run investment outlook of the entity is still stable. The company chance of financial distress is now about 45.0 percent. What is First Midwest Target Price Odds to finish over Current Price? In reference to normal probability distribution, the odds of First Midwest to move above current price in 30 days from now is about 89.32%. The First Midwest Bancorp probability density function shows the probability of First Midwest Stock to fall within a particular range of prices over 30 days . Given the investment horizon of 30 days, First Midwest has beta of 0.0 suggesting the returns on S&P 500 and First Midwest do not appear to be reactive. Additionally, it does not look like the company alpha can have any bearing on the equity current valuation.
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Reviewed by Michael Smolkin
The entity has beta of 1.51. As market goes up, the company is expected to significantly outperform it. However, if the market returns are negative, First Midwest will likely underperform. This firm dividends can provide a clue to current valuation of the stock. First Midwest one year expected dividend income is about $0.21 per share. Earning per share calculations of the entity is based on official Zacks consensus of 7 analysts regarding the stock future annual earnings. Given the historical accuracy of 96.33%, the future earnings per share of the company is estimated to be 1.2271 with lowest and highest values of 1.2 and 1.24 respectively. Please note that this consensus of annual earnings estimates for First Midwest is an estimate of EPS before non-recurring items and including employee stock options expenses.
How important is First Midwest's Liquidity
First Midwest financial leverage refers to using borrowed capital as a funding source to finance First Midwest Bancorp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First Midwest 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 First Midwest'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 First Midwest'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 First Midwest's total debt and its cash.
Breaking down First Midwest Further
First Midwest Bancorp reported previous year revenue of 637.95M. Net Income was 169.01M with profit before overhead, payroll, taxes, and interest of 613.36M. The small decline in market price for the last few months could raise concerns from investors as the firm closed today at a share price of 20.26 on 451277.000 in volume. The company executives did not add much value to First Midwest investors in May. However, diversifying your holdings with First Midwest Bancorp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 30 days (very short) investing horizon is currently 1.5888. The below-average Stock volatility is a good sign for a longer term investment options and for buy-and-hold investors. First Midwest discloses 613.36m in gross profit. First Midwest is trading at 20.28. This is 1.30 percent increase. Day Low was 20.26. First Midwest Cash Flow Per Share is increasing over the last 5 years. Also, First Midwest Net Cash Flow Business Acquisitions and Disposals is nearly stable at the moment.
In closing, our overall buy-sell advice on the entity is Strong Hold. We believe First Midwest is undervalued with below average probability of distress for the next two years.
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