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Certified Professional Contracts Manager(R) (CPCM)
C. Contract administration
D. Contract formation Answer: C Question: 135
Which of the following is the key policy of contract administration?
A. compliance with contract terms and conditions
B. effective control of contract changes
C. effective resolution of claims and disputes
D. All of the above Answer: D Question: 136
Generally, observing and collecting information cover which three categories of concern?
A. compliance, cost control and schedule control
B. cost control and schedule control, risk control
C. compliance, cost control and performance
D. compliance, change control and risk control Answer: A Question: 137
A progress report from many observers, and technical reviews and audits is called:
A. Direct observation
B. Indirect observation
C. Contractual audit
D. Change observation Answer: B Question: 138
Changes are an inevitable part of contracting, because no one can predict the future with
37 Answer: A Question: 139
Contract closure by mutual agreement or breach of contract is called contract closeout.
B. False Answer: B Question: 140
What refers to verifying that all administrative matters are concluded on a contract that is
otherwise physically complete?
A. Contract termination
B. Contract certificate
C. Contract closeout
D. Contract execution Answer: C Question: 141
Which of the following is the type of termination?
A. termination for cause
B. termination by mutual agreement
C. no-cost settlement
D. All of the above Answer: D Question: 142
Used without normal termination procedures, no-cost settlement can be considered when:
A. the seller has indicated it will accept it
B. no buyer property was furnished under the contract
C. the product or service can be readily obtained elsewhere
D. All of the above Answer: D
38 Question: 143
Supply chain management advocates told buyers that they needed to:
A. use fewer suppliers vs. many suppliers
B. negotiate long-term contract vs. short-term contracts
C. conduct more detailed progress or milestone tracking of suppliers
D. All of the above Answer: D Question: 144
To achieve high performance results year after year, companies must take what action to
form successful long-term partnerships?
A. unleashing corporate buying and selling power
B. changing buying and selling processes and tools
C. developing and integrated supply chain
D. All of the above Answer: D
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https://killexams.com/exam_list/FinancialThe best books for financial advisors in 2023
It's no surprise to find financial advisors and planners who are also voracious readers. After all, Warren Buffett has likened the knowledge gleaned from studying to gains made in the market: "It builds up, like compound interest."
To close out 2023, we asked financial professionals about books they read this year that made the biggest impact on them, whether in their work practice or in their personal lives. Answers came in from across the country and ranged far and wide, from business books to self-help tomes to memoirs. Scroll down to see the titles you might want to add to your own studying list in 2024.
And to see previous book lists, check out:
Fri, 29 Dec 2023 04:59:00 -0600entext/htmlhttps://www.financial-planning.com/list/the-best-books-for-financial-advisors-in-20235 money books that can help you build wealth in 2024, according to financially independent individuals, real-estate investors, and entrepreneurs
Business Insider rounded up book recommendations from successful investors and entrepreneurs.
One top pick is 'Richer, Wiser, Happier,' in which the author did hours of interviews with 'super-investors.'
A timeless classic recommended by multiple investors is 'Rich Dad Poor Dad.'
If you set some 2024 business or financial goals and need a dose of inspiration to achieve them, the right book could do the trick.
To help narrow your search process, Business Insider rounded up book recommendations from financially independent investors, business owners, and entrepreneurs.
One of his favorite investing books is "Richer, Wiser, Happier," written by the financial journalist William Green, who did hundreds of hours of interviews with "super-investors," from Charlie Munger to Jack Bogle. They let Green in on how to build wealth, how they think, and why they win.
"This is probably one of the better books people could read about general mindset," said Smolinski, who says he finished Green's book in less than 24 hours.
If starting or growing a business is one of your 2024 objectives, consider picking up a copy of "The E-Myth."
This recommendation comes from bookstore owner Adah Fitzgerald, who receives 2,000 to 3,000 books weekly to place on the shelves of Main Street Books in Davidson, North Carolina. She is quite literally surrounded by books — and reads about one a week.
"There are a million business books, and 'The E-Myth' is brilliantly simple," said Fitzgerald. "It's not rocket science: There's a specific set of things that have to get done in order to run your business."
Berkley read a later edition of Nickerson's book early in his real-estate investing journey, which started as a side project while working full-time on Wall Street in the 2010s. It validated his belief that real estate could be a path to wealth.
Volnay Capital founder Ricky Beliveau didn't consider real estate a viable career path until he took a real-estate finance class as a senior at Northeastern University. He has his college professor to thank for launching his successful career in development — and he has continued to self-educate since graduating.
One of Beliveau's top picks is "Sell It Like Serhant," by Ryan Serhant, a real-estate broker, investor, and the star of "Million Dollar Listing."
While Serhant has built his career around real estate, his book is for any professional looking to get ahead. The success principle that most resonated with Beliveau while studying Serhant's book doesn't necessarily have anything to do with real estate: It's what the author calls a "balls up" mindset."
He talks about having 'balls in the air,'" said Beliveau, and those balls represent different business or income-generating opportunities. "Picture juggling 100 different balls. Some of those balls need a lot more care because those are the most important leads or the most important things you're working on, but if you're just juggling one big ball and it falls or goes away, you've got nothing else to do."
When you have "more balls up," as Serhant puts it, "you're surrounded by opportunity and you're taking advantage of those opportunities at the same time — you're making new contacts, gaining great referrals, and maximizing the hours you're awake."
Serhant believes it's possible to juggle multiple deals or opportunities simultaneously. "So, why grab just one ball when you can handle five or more?" he writes. "Go big."
After losing nearly his entire nest egg to day-trading stocks, Zuber wanted to explore alternative ways to invest his money, so he went to a bookstore to look for investment books. He was drawn to "the only purple one on the shelf," he said, which was "Rich Dad Poor Dad."
"I grabbed it and ended up studying it over and over, 10 to 15 times, just because it was so different from anything I'd ever read before," he said.
One of Kiyosaki's main points is that the wealthiest people focus on building assets, which changed how Zuber thinks about money: "I'd never really had a conversation about how money works and how the rich get richer by owning assets."
Sun, 24 Dec 2023 19:30:00 -0600en-UStext/htmlhttps://www.businessinsider.com/money-investing-book-recommendations-investors-entrepreneurs-build-wealth-financial-independence-2023-12Forget ‘spend less’ or ‘save more.’ Make this your No. 1 financial resolution for 2024No result found, try new keyword!You may think that improving your financial life is simply a matter of taking unpleasant but necessary steps: Curb spending. Cut debt. Make more. Boost savings.Thu, 28 Dec 2023 00:00:27 -0600en-ustext/htmlhttps://www.msn.com/4 signs you aren't going to build the wealth you want without professional helpNo result found, try new keyword!Adding professional money help can move you closer to your wealth goals and get you beyond the basics in financial planning.Fri, 29 Dec 2023 23:55:01 -0600en-ustext/htmlhttps://www.msn.com/9 Financial Mistakes to Avoid in 2024
Opinions expressed by Entrepreneur contributors are their own.
Welcome to the new year — the starting gate of our next 365-day race. Here we are, toes on the line with that new year's unbridled optimism. We all have that voice saying, "This year, it's going to be different." But let's pause for a second — will it really? Without a solid game plan, you're just sprinting off blindfolded.
Today, let's break down nine things you absolutely should not do as you kick off your new year. And no, we're not talking about the usual suspects like hitting the gym or giving your living room a facelift. Let's pivot to something less flashy, yet crucial — your finances.
Here's the deal: To genuinely pull ahead this year, you need to dust off those neglected, cobweb-covered corners of your financial house. The ones you've conveniently ignored or barely glanced at. Those are the game changers. Let's dive in.
It's like going into a storm without an umbrella. No insurance? You're asking for trouble. A single mishap could lead to a financial deluge. The solution is simple: Get insured. Health, car, home — cover your bases. It's not just sensible; it's essential.
If this seems like a mammoth task, hire it out. Get a broker to analyze what's best for your situation. It might cost a dollar more, but it'll save you thousands if you never got insurance to begin with.
Bonus points: Get your family on board for the new year, too. This will not only be a lifesaver for you and them (quite literally) but might also get you all some discounted deals as well.
2. Not having an emergency fund
Imagine your car breaks down or you face a sudden medical bill. Without an emergency fund, you're flirting with debt disaster. The game plan here is straightforward: Build that fund. Aim for a cushion that can cover three to six months of expenses. It's your financial shock absorber.
Don't know where to start? Consider opening a bank account that automatically deducts $50 from your incoming pay. And if this seems difficult, call up your bank and get them to set it up. The key here is to set it and forget it (until you need it).
3. Not planning for taxes
Taxes can be a ticking time bomb if ignored. Waiting until the last minute invites stress, mistakes and penalties. The wise approach is to tackle your taxes all year round. Keep track of your expenses and deductions. It's about turning a headache into a manageable task.
Let's break it down easily. Your best game plan here is to get in touch with a reputable tax professional who can sketch out the fine details for you. Get the professionals to make you a plan, and just follow it through. Again, it might cost more upfront, but it will save you enormously when tax time comes around.
4. Paying only the minimum on credit cards
It's a trap! Minimum payments keep you in a perpetual debt cycle. The accruing interest turns what was once a molehill into a mountain. Break free by paying off more than the minimum. Better yet, clear the whole balance monthly. It's the smart way to keep interest costs in check.
Tackle it like your emergency fund — automatically allocate money out of your incoming pay. This way, when you look at your balance, you're looking at what you can use with peace of mind.
Sailing without a destination leads nowhere. Without financial goals, saving and investing becomes aimless. Set clear, achievable objectives. Whether it's a down payment for a house, a dream vacation or a comfortable retirement, having a target gives your financial efforts direction and purpose.
If you're unsure of what this might look like, start by saying what you don't want. That might be debt, stress, being financially constrained — you name it. Then turn this into a goal for yourself to avoid this year, and you've got a good place to start.
6. Not checking your credit score
Your credit score is the gateway to your financial opportunities. Ignoring it can lead to nasty surprises at the worst times (like loan rejection). Regular checks are a must. It's about being proactive and addressing issues before they become problems.
Make it easy for yourself. Get your accountant to do this for you. Here's another bonus — set this up as one of your previous financial goals for this year. Chat with your accountant about what you can do to get that score up. Then set it in action.
7. Not investing
Letting your money idle in a low-interest savings account is a missed opportunity. Inflation can erode your savings' value over time. Investing offers the potential for huge returns. Research, understand your risk tolerance, and start putting your money to work.
For anyone who hasn't attempted investing before, join an investing group. You'll get great insights into opportunities, you'll get educated and maybe find some great networks, too.
8. No budget
Operating without a budget is like driving with your eyes closed — you don't know where you're going until you crash. A budget is your financial roadmap. It helps you track income, control spending and ensure you're steering towards your financial goals.
The best source of information to help you build your budget is you. Look back over your bank statements. See where your money went last year. And aim realistically. Cutting back $50 per week on unnecessary expenses is a win in itself.
This is a one-way ticket to financial stress. Unchecked debts grow, interest compounds, and before you know it, you're in over your head. The solution? Face them head-on. Create a repayment plan prioritizing high-interest debts, and stick to it. It's about reclaiming control.
Book an appointment with your accountant as soon as they're open in January. Get real about the looming clouds over your financial freedom, and let them make a plan for you to follow. Remember: If it's too hard, hire it out.
So, let's raise a toast to the new year — not just to what it brings, but to what we'll avoid to make it truly spectacular. Here's to making smart choices, to being financially fearless, and to a year where the only downfalls are the ones we expertly dodge together. Wishing you and your family a prosperous (and financially abundant) year ahead. Happy financial planning!
Sun, 31 Dec 2023 10:00:00 -0600entext/htmlhttps://www.entrepreneur.com/money-finance/9-financial-mistakes-to-avoid-in-2024/466948CQ Consulting Services Founder Chris Quintana Unveils New, Safer, & More Innovative Strategies For Reaching Financial Freedom With
Saint Johns, United States - December 22, 2023 —
CQ Consulting Services, under the leadership of founder and CEO Chris Quintana, has announced the introduction of cutting edge strategies aimed at revolutionizing the way individuals manage and grow their wealth. This innovative approach is designed to empower clients to achieve financial freedom and security through smarter, faster, and safer financial practices.
Chris Quintana, a seasoned expert in personal finance, has been at the forefront of advocating for financial literacy and independence. Her journey, fueled by personal experiences in navigating the complexities of money management, has led her to develop a unique methodology that challenges traditional financial paradigms. “It’s about flipping the script,” Quintana asserts. “We’re here to expose the secrets that banks and traditional financial institutions prefer to keep hidden, and equip our clients with the tools they need to thrive financially.”
At the core of CQ Consulting’s strategy is the proprietary Financial Freedom Formula, a system meticulously crafted by Quintana. This formula is not just a theoretical concept but a practical, actionable plan that promises to guide clients towards financial freedom within a span of three to seven years. The approach is highly personalized, taking into account the individual needs and goals of each client, ensuring that the advice and strategies provided are as unique as the clients themselves.
The services offered by CQ Consulting are comprehensive, covering a wide range of financial aspects including estate planning, tax strategies, retirement planning, and investment consulting. Quintana’s team, boasting over 300 years of combined experience, works collaboratively to provide holistic solutions for their clients. “Our strength lies in our collective expertise,” Quintana explains. “We bring together the best minds in each aspect of personal finance to offer a service that’s unparalleled in the industry.”
Quintana and her team use innovative strategies to help clients maximize existing resources and generate more cash flow. One of their signature offerings is the Financial Freedom Formula, a proprietary system that Quintana claims can lead to financial independence within three to seven years.
But CQ Consulting doesn’t just offer generalized advice – the team customizes solutions based on each client’s unique needs and goals. From estate planning to tax strategies, Quintana assembles specialized teams to cover all bases. “Our team approach allows you to benefit from over 300 years of combined experience in serving people just like you,” Quintana said.
And Quintana’s professional partnerships have expanded CQ Consulting’s capabilities even further; they all share Quintana’s passion for empowering clients and offer services like estate planning, retirement planning, investment management, tax planning and much more.
Quintana also spreads her message through speaking engagements and her international bestselling book “The Less You Know the More They Make- You Can Flip That Script.” She hopes the book will open readers’ eyes to the tactics banks and government use to profit off lack of financial literacy. Quintana packs the book with insider secrets about money management that mainstream institutions don’t readily share.
When she isn’t working directly with clients, Quintana is giving back through humanitarian work and volunteering in several third world countries. She has also traveled to Indonesia and spent time with endangered wildlife in their natural habitats. These experiences drive Quintana’s philanthropic efforts and motivate her service.
Quintana’s career in finance started back in 2009 when she founded her first company, Q&M Properties LLC. She went on to launch the Financially Sassy Women’s Club and Financially Sassy Coaching before ultimately founding CQ Consulting Services in 2020.
Throughout her career, Quintana has lived by principles of integrity, excellence, and empowerment. She is driven by loyalty to her clients and passion for her mission of financial freedom. Quintana has helped countless individuals and families optimize their finances, build wealth, and gain peace of mind.
“You deserve to work with a financial professional who will not only address your specific money needs but will also educate, empower, and inspire you,” Quintana said. Her innovative programs like the Financial Freedom Formula combined with her commitment to personalized service deliver clients a roadmap to financial success.
With her unique approach and commitment to empowerment, Chris Quintana and her team at CQ Consulting are charting a new course for financial success. Quintana is flipping the script on traditional finance, arming her clients with insider knowledge and customized strategies. Instead of struggling in the dark, Quintana’s clients can take control of their money confidently.
If you’re looking to optimize your finances and design a personalized short path to financial freedom, Chris Quintana and CQ Consulting offer the education, guidance, and support needed to gain financial freedom once and for all. Quintana’s innovative programs deliver results by maximizing existing resources instead of requiring unrealistic budgets.
Don’t wait any longer – take control of your financial future. Chris Quintana has the strategies and knowledge to help you keep more, make more, and live more starting today.
If there are any deficiencies, problems, or concerns regarding the information presented in this press release that require attention or if you need assistance with a press release takedown, we encourage you to notify us without delay at firstname.lastname@example.org. Our diligent team is committed to promptly addressing your concerns within 8 hours and taking necessary actions to rectify any identified issues or facilitate the removal process. Providing accurate and trustworthy information is of utmost importance.
Fri, 22 Dec 2023 17:21:00 -0600entext/htmlhttps://markets.businessinsider.com/news/stocks/cq-consulting-services-founder-chris-quintana-unveils-new-safer-more-innovative-strategies-for-reaching-financial-freedom-with-1032923540Capital One Financial: Time To Get Out
Capital One Financial (NYSE:COF) now has a valuation that exceeds the valuation from before the financial crisis in the first quarter, which means shares have fully revalued. After the collapse of Silicon Valley Bank in Q1'23, regional banks sold off heavily, resulting in exceptionally attractive buying opportunities back then. Capital One Financial is now trading much closer to book value, despite the bank likely seeing considerable net interest margin headwinds in FY 2024 after the Fed said that it would end its tightening policy. I have sold out of all of my bank holdings and continue to see growing risks for Capital One Financial!
I recommended Capital One Financial at the onset of the financial crisis in the first quarter and lowered my rating to sell in July due to my concerns relating to rising credit losses in the bank's core business, credit cards. Capital One Financial is a very consumer-oriented bank with considerable exposure to credit cards and, therefore, is vulnerable to a rise in loan defaults. Since Capital One Financial’s shares have since revalued to the upside again and now trade very close to book value, I believe the risk profile has further deteriorated.
Challenges to net interest margins
Capital One Financial reported $7.4B in net interest income in the third-quarter, showing 4% quarter-over-quarter growth due to growth in its credit card portfolio and higher yields. However, the bank’s net interest margin declined 0.11 percentage points on a year-over-year basis to 6.69%. Going forward, given the Fed’s announcement that it would pivot in terms of interest rates in 2024, Capital One Financial’s net interest margin is set to come under further pressure, despite its comparatively high yields achieved from its credit card portfolio. As a result, I expect a changing interest rate landscape to result in lower bank profitability and capital returns for shareholders.
Focus on credit losses
In my July work, I mentioned that the lender had a high level of credit provisions which posed a challenge for the bank’s profitability, especially if the U.S. economy headed for a down-turn.
In the third quarter, Capital One Financial’s credit provision situation did not deteriorate, but it also didn’t get much better. The bank reported credit provisions in the amount of $2.3B, compared to $2.5B in the second quarter. The majority of credit provisions, again, occurred in the credit card business, which represented $1.95B or 84% of total provision expenses in Q3'23. In the second quarter, Capital One Financial's credit card business required $2.1B in provisions (83% of the total). In other words, the credit card provision trend did not deteriorate most recently, but the situation could get a whole lot worse for Capital One Financial if the U.S. economy tanks in 2024 and loan defaults rise.
Capital One Financial is now trading near its long-term P/B ratio
Capital One Financial is a sell for me chiefly because of a strong revaluation of the bank's shares to the upside which happened in the context of the Fed pivot. Capital One Financial’s shares have historically sold at a discount to book value which is due, in my opinion, to the lender focusing chiefly on its credit card operations which are cyclical in nature and tend to generate rising loan defaults in a down-economy.
Currently, shares of Capital One Financial are trading at a price-to-book ratio of 0.92X, which is slightly above the bank's three-year average P/B ratio of 0.87X. Since a full revaluation has taken place in the last two months, I believe that, given the Fed pivot context, Capital One Financial has an unattractive risk profile. Other mid-sized lenders like PNC Financial (PNC) and U.S. Bancorp (USB) have also seen strong re-ratings, indicating that investors are now overly exuberant following the Fed decision from earlier this month. Since U.S. Bancorp and PNC Financial are more diversified than Capital One Financial (non-core credit card focus), these rival banks are selling at much higher price-to-book ratios as well.
Risks with Capital One Financial
The risks here chiefly pertain to continual upside potential for banks even if the Federal Reserve lowers interest rates. This could be the case if the U.S. economy retains its good constitution and Capital One Financial, which is oriented towards consumers through its vast credit card operations, avoids a rise in loan defaults. However, even in this scenario, I would not recommend shares of Capital One Financial due to valuation considerations and the general cyclical nature of the credit card business.
Capital One Financial, after such a strong increase in pricing, especially in the last two months, remains a sell, in my opinion. The credit card-focused lender is set to see a changing interest rate landscape in FY 2024 which should further erode its net interest margin outlook. Also, shares of Capital One Financial now trade above their 3-year average price-to-book ratio, a fact that in my opinion is related to investor exuberance following the Federal Reserve’s announcement that it would start to cut interest rates soon. With shares now trading close to book value, I believe the risk profile is not attractive at all and my rating on the credit card lender remains a sell!
Mon, 25 Dec 2023 21:35:00 -0600entext/htmlhttps://seekingalpha.com/article/4659657-capital-one-financial-time-to-get-outWebsite Designs for Financial Advisory FirmsNo result found, try new keyword!A professional website, along with a social media presence, is integral to cultivating your business's brand image. If you're not design-savvy or lack the technical skills to develop a site, you might ...Wed, 03 Jan 2024 01:45:49 -0600en-ustext/htmlhttps://www.msn.com/TFS Financial: Income Play With Unique Ownership Structure
TFS Financial Corporation (NASDAQ:TFSL) is a retail bank that collects deposits and issues loans to individuals such as mortgages. The bank has been around since 1938 and it's still run by the Stefanski family which founded it.
The bank's stock has a unique structure. It has two ownership groups. First is the Third Federal MHC and the second is Minority Shareholders which would be people like you and me who buy the stock in the market. Back in 2007, the stock ownership structure was two-thirds for MHC and one-third for minority or retail investors. By 2023, MHC's ownership rose to 81% and minority ownership dropped to 19% through share repurchases. Why is this information important? Because due to the company's unique structure, it pays dividends to only minority investors.
This creates a unique situation for the investors of the company. If less than 20% of shares are eligible for dividends, that means there are more dividends to go around for each share. The company can basically pay 4x the dividend per share that it normally could if it paid dividends for all shares. This is why the company can support a dividend yield of 8% comfortably when most of its peers can only support a fraction of this yield.
The bad news is that the company hasn't hiked its dividends for a while so this may be more suitable for high-yield income investors than dividend growth investors. After raising its dividends for several years in a row, the company set its annual dividends at $1.13 and it's been there for a few years now.
When you look at the company's dividend safety numbers, you might see some scary numbers but again it's explained by the same reason. It appears that the company's dividend payout ratio is as high as 418.5% which means the company is distributing more than 4x times the amount of money it's making but keep in mind that the company pays dividends on only 18% of its shares so the real payout ratio is much lower. In fact, the company's dividend payout ratio is closer to 75% when you account for this unique dividend practice. It could even get lower in the future if the company continues on with its practice of buying back minority shares and reducing their overall percentage as it's been doing since 2007.
Because of its unique share structure, when the bank reports earnings, it reports earnings and book value in two ways. For example, as of the company's last report, it reported GAAP earnings of 27 cents per share as well as $1.41 per minority share in the last 12 months. When you keep in mind that the company was paying $1.13 per share in dividends, the first number makes it seem like the dividend is far from sustainable whereas the second number actually shows that the dividend is easily sustainable. The same is also true for the company's book value. Its book value is either $6.87 per share or $36.20 per share depending on whether you are looking at all shares or minority shares only. According to the first metric, the company is trading at more than 2x its book value whereas according to the second metric it's trading at slightly more than one-third of its book value.
If we look at the company's metrics by minority share, they have been more or less stable over the years. After earning $1.62 in 2018 the company earned $1.53 in 2019 and $1.59 in the next year. 2022 was the company's worst year in latest history but it still managed to earn $1.36 and 2023 seems to be on the way to recovery to $1.41. Unfortunately, we are not seeing much growth in this metric which also explains why dividend growth has been absent in latest years even with all those share repurchases reducing the number of available minority shares. If you account for the fact that the company's minority shares have been declining, you can also notice that its EPS has been on a slight decline as well. While this doesn't mean that the current dividend is not sustainable for the time being, it could mean that its dividend might not get a hike anytime soon until its earnings start growing.
You'd think that the company would make far more money in the last 2 years since rates for loans and mortgages have been rising but the company's mortgage originations have been actually down significantly. In the fiscal year 2023, the company posted $1.86 billion in loan originations and purchases, down almost half from last year's $3.6 billion. This kind of makes sense considering that demand for mortgages dropped significantly as mortgage rates rose from 3% to almost 8% in as little as a year while home prices didn't drop by much, making homes significantly less affordable for most people. Still, 50% is a pretty drastic drop and investors will have to keep an eye on this number moving forward.
Since last year, the company's deposits grew from $8.9 billion to $9.4 billion while its net loans grew at the same rate indicating a loans to deposits ratio of 160% or a leverage ratio of 60%. The company's total return on assets and return on equity dropped slightly but its net interest income rose slightly to make up for this. The good news is that the quality of the bank's loans continues to hold up with a total percentage of non-performing loans dropping from 0.23% to 0.20%, indicating that it's able to collect payments from 99.8% of the loans it holds. This is especially important because interest rates have been rising significantly and more than one-third of the company's loans are at a floating rate which means they would be affected by rate increases significantly. One would think that when interest rates to higher, the percentage of non-performing loans will increase because more people will have trouble with servicing their loans but it hasn't happened yet at this bank as of last quarter.
When calculated by minority ownership shares, the stock trades at a P/E of 10 which is slightly higher than most regional banks. Typically regional banks trade at a P/E range of 6-10 and this bank falls into higher end of that range but this is mostly because of the rally we've seen recently in this stock's price. I wouldn't call this bank expensive but it is closer to the higher end of the normal range for sure.
With its unique structure of dual ownership and only paying dividends to minority owners, the stock presents an interesting opportunity for income investors who appreciate high yields but keep in mind that this might not come with much dividend growth. Also, if the company were to change its ownership structure or decided to start paying dividends to all owners, the current yield would drop significantly and you might be looking at a dividend cut of as much as 80%. As of right now, the risk of this happening is very small and the company is committed to paying dividends to only minority holders but this is not guaranteed forever. It actually gets voted and majority holders are actually asked to waive their dividends which they have done so far and are likely to continue doing so.
Also, since this is a regional bank, the risk of it getting affected in the future by a slowing economy or a recession is much higher than bigger banks with much bigger resources. Last year we already saw several regional banks fail but again those banks were making leveraged bets on bonds which this bank doesn't really do. This bank is more interested in the retail side of things where it collects deposits and issues loans and its leverage ratio is quite manageable for now.
Thu, 04 Jan 2024 13:39:00 -0600entext/htmlhttps://seekingalpha.com/article/4661255-tfs-financial-income-play-unique-ownership-structure-tfslInvestigating Automatic Data Processing's Standing In Professional Services Industry Compared To Competitors
In the ever-evolving and intensely competitive business landscape, conducting a thorough company analysis is of utmost importance for investors and industry followers. In this article, we will carry out an in-depth industry comparison, assessing Automatic Data Processing ADP alongside its primary competitors in the Professional Services industry. By meticulously examining key financial metrics, market positioning, and growth prospects, we aim to offer valuable insights to investors and shed light on company's performance within the industry.
Automatic Data Processing Background
ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises. ADP was established in 1949 and serves over 1 million clients primarily in the United States. ADP's employer services segment offers payroll, human capital management solutions, human resources outsourcing, insurance and retirement services. The smaller but faster-growing professional employer organization segment provides HR outsourcing solutions to small and midsize businesses through a co-employment model.
EBITDA (in billions)
Gross Profit (in billions)
Automatic Data Processing Inc
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Through a thorough examination of Automatic Data Processing, we can discern the following trends:
With a Price to Earnings ratio of 27.61, which is 0.17x less than the industry average, the stock shows potential for growth at a reasonable price, making it an interesting consideration for market participants.
With a Price to Book ratio of 27.54, significantly falling below the industry average by 0.67x, it suggests undervaluation and the possibility of untapped growth prospects.
The stock's relatively high Price to Sales ratio of 5.53, surpassing the industry average by 2.23x, may indicate an aspect of overvaluation in terms of sales performance.
The company has a higher Return on Equity (ROE) of 24.62%, which is 18.13% above the industry average. This suggests efficient use of equity to generate profits and demonstrates profitability and growth potential.
The company has higher Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $1.33 Billion, which is 13.3x above the industry average, indicating stronger profitability and robust cash flow generation.
The company has higher gross profit of $1.8 Billion, which indicates 5.81x above the industry average, indicating stronger profitability and higher earnings from its core operations.
The company's revenue growth of 5.79% is notably higher compared to the industry average of 4.33%, showcasing exceptional sales performance and strong demand for its products or services.
Debt To Equity Ratio
The debt-to-equity (D/E) ratio indicates the proportion of debt and equity used by a company to finance its assets and operations.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
In terms of the Debt-to-Equity ratio, Automatic Data Processing can be assessed by comparing it to its top 4 peers, resulting in the following observations:
Compared to its top 4 peers, Automatic Data Processing has a stronger financial position indicated by its lower debt-to-equity ratio of 0.96.
This suggests that the company relies less on debt financing and has a more favorable balance between debt and equity, which can be seen as a positive attribute by investors.
The valuation analysis for Automatic Data Processing (ADP) in the Professional Services industry reveals the following insights.
In terms of PE, PB, and PS ratios, ADP demonstrates a low valuation compared to its peers. This suggests that ADP may be undervalued in the market, potentially making it an attractive investment opportunity.
Regarding ROE, EBITDA, gross profit, and revenue growth, ADP exhibits high performance compared to its industry peers. This indicates that ADP is efficiently utilizing its resources and experiencing strong growth, positioning it favorably within the Professional Services sector.
Overall, the valuation analysis suggests that ADP has a strong financial standing and is well-positioned for future growth in the industry.
This article was generated by Benzinga's automated content engine and reviewed by an editor.