Asset Breakdown
| Total Assets | 47.39 Billion | |
| Goodwill | 1.62 Billion | |
| Tax Assets | 191.84 Million |
What is August outlook for South (USA Stocks:SSB)?
 | By Ellen Johnson | Macroaxis Story |
South State Corp carries a debt of 392.27 million, with a debt to equity (D/E) ratio of 0.05. This suggests that South State Corp may not be fully leveraging its borrowing capacity to maximize profits. While debt can provide a financial cushion for the company until repayment becomes challenging, either through raising new capital or generating free cash flow, it also carries risks. If South State Corp fails to meet its legal obligations to repay its debts, its shareholders could potentially lose their entire investment.
However, a more common scenario is when companies like South State Corp issue additional shares at discounted prices, which leads to the dilution of existing shareholders' stakes. In such instances, debt can be a more advantageous tool for South State Corp to invest in growth opportunities that yield high returns. When evaluating South State's use of debt, it's crucial to consider it in conjunction with cash and equity.
Rigorous look on South
South State Corp (SSB) has demonstrated strong financial resilience with a substantial cash position of 548.4M and net tangible assets worth 3B. Despite a net borrowing loss of 237.8M, the firm's retained earnings total equity stands at 1.3B, indicating a robust internal financing capability. The company's stock has also shown a positive price change of 3.12, with the last price recorded at 78.12. Considering the firm's solid financial footing and the positive price action indicator of 2.42, South State Corp appears well-positioned for a potential surge in August. Investors should also note the company's industry classification as Banks-Regional, which has historically shown resilience and steady growth.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 Michael Smolkin
South State Corp (NASDAQ: SSB), a player in the Banks-Regional industry, has been showing promising signs of a potential surge in August. The company's total operating expenses stand at a manageable $24.2M, while its net tangible assets amount to a robust $3B. Despite a loss in cash and cash equivalents changes of $5.4B, the company has managed to maintain a healthy balance sheet with non-current liabilities totaling $38.8B and total current liabilities at $36.6B. The forward dividend yield is 0.0263, with a forward dividend rate of 2, which may attract income-focused investors. The company's retained earnings total equity is $1.3B, indicating a solid financial foundation. With 3 strong buy recommendations from analysts and a valuation real value of $78.56, which is higher than the day's typical price of $77.55, South State Corp could be poised for a surge. South State Corp is set to announce its earnings today, with the subsequent financial report anticipated on October 23, 2023. Based on the reporting trends of the past few years, South State's Net Income Per Employee is projected to see a significant increase. The Net Income Per Employee for the previous year stood at $96,771.
For the current year, the company's Average Assets are expected to grow to approximately $49 billion. However, the Revenue Per Employee is predicted to decrease to about $275.8 thousand. As the banking sector is beginning to pique the interest of many passive investors, South State Corp could serve as an excellent entry point. We will further analyze why investors might still consider acquiring a stake in this business.South State financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of South State, including all of South State's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of South State assets, the company is considered highly leveraged. Understanding the composition and structure of overall South State debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.
Understanding South Total Debt
South State Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. South State Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on South State balance sheet include debt obligations and money owed to different South State vendors, workers, and loan providers. Below is the chart of South main long-term debt accounts currently reported on its balance sheet. You can use South State Corp financial leverage analysis tool to get a better grip on understanding its financial positionHow important is South State's Liquidity
South State financial leverage refers to using borrowed capital as a funding source to finance South State Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. South State 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 South State'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 South State'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 South State's total debt and its cash.
Another Deeper Perspective
The firm reported the last year's revenue of 1.64 B. Total Income to common stockholders was 496.05 M with profit before taxes, overhead, and interest of 1.56 B.
South State Corp (SSB), a key player in the Banks-Regional industry, has shown promising signs of a potential surge in August. The company has a healthy end period cash flow of 1.3 billion and a net interest income of 1.3 billion, indicating strong financial health. The company's EBITDA stands at 727.92 million, further underlining its profitability. South State Corp also boasts a robust operating margin of 0.47% and a five-year return of 2.30%, reflecting its consistent performance.The company's Beta of 0.8 suggests lower volatility compared to the market, making it a safer bet for investors. The company's forward dividend rate of 2, coupled with an EPS estimate for next year at 6.89, makes it an attractive option for income-focused investors. Despite a change in working capital of 800 million and a negative cash and cash equivalents change of -5.4 billion, the company's net debt stands at -156.1 million, indicating a strong financial position. With a market capitalization of 5.8 billion and a target price of 81.81, South State Corp is well-positioned for potential upside. However, investors should also consider the company's risk-adjusted performance of 0.01 and a probability of bankruptcy at 2.68% while making their investment decisions. .
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