Focus Stock Buy Hold or Sell Recommendation

FOCS -  USA Stock  

USD 36.91  2.83  8.30%

Given the investment horizon of 90 days and your highly speculative risk level, our recommendation regarding Focus Financial Partners is 'Hold'. Macroaxis provides Focus Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding FOCS positions. The advice algorithm takes into account all of Focus Financial's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Focus Financial's buy-and-hold perspective. Please check Focus Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Focus and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Focus Financial Partners.

Execute Focus Financial Buy or Sell Advice

The Focus recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Focus Financial Partners. Macroaxis does not own or have any residual interests in Focus Financial Partners or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Focus Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Focus FinancialBuy Focus Financial
Hold

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Quite HighDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Focus Financial Partners has a Risk Adjusted Performance of (0.22), Jensen Alpha of (0.17), Total Risk Alpha of (0.10) and Treynor Ratio of (0.29)
Focus Financial advice module can be used to check and cross-verify current investment recommendation provided by analysts reviewing the company's potential to grow using all of fundamental, technical, data market data available at the time. To make sure Focus Financial is not overpriced, please confirm all Focus Financial Partners fundamentals, including its cash and equivalents, number of employees, and the relationship between the price to sales and book value per share . Given that Focus Financial Partners has a number of shares shorted of 2.48 M, we urge you to verify Focus Financial Partners market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Focus Financial Trading Alerts and Improvement Suggestions

Focus Financial generated a negative expected return over the last 90 days
Focus Financial has high likelihood to experience some financial distress in the next 2 years
Latest headline from www.gurufocus.com: FG Financial Group, Inc. Announces Closing of Public Offering - GuruFocus.com

Focus Financial current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Focus analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Focus analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price64.44
Target Median Price62.00
Target High Price76.00
Recommendation Mean1.70
Number Of Analyst Opinions9
Target Low Price58.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Focus Financial Returns Distribution Density

The distribution of Focus Financial's historical returns is an attempt to chart the future uncertainty of Focus Financial's future price movements. The chart of the probability distribution of Focus Financial stock daily returns describes the distribution of returns around its average expected value. We use Focus Financial Partners price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Focus Financial returns is essential to provide solid investment advice for Focus Financial stock.
Mean Return-0.44Value At Risk-6.04
Potential Upside3.59Standard Deviation2.62
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Focus Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Focus Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Focus Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Focus Financial Partners backward and forwards among themselves. Focus Financial's institutional investor refers to the entity that pools money to purchase Focus Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Stone Point Capital LlcCommon Shares16 M734.1 M
Wasatch Advisors IncCommon Shares6.1 M277.1 M
Capital World InvestorsCommon Shares5.5 M250.8 M
Jpmorgan Chase CoCommon Shares5.1 M232.6 M
Vanguard Group IncCommon Shares4.8 M220.4 M
Blackrock IncCommon Shares3.9 M180.4 M
Darlington Partners Capital Management LpCommon Shares1.9 M87.5 M
Note, although Focus Financial's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Focus Financial Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(10.52 M)(9.11 M)(25.47 M)(19.35 M)(11.02 M)(11.89 M)
Depreciation Amortization and Accretion71.05 M98.75 M141.39 M160.23 M202.47 M177.05 M
Net Cash Flow or Change in Cash and Cash Equivalents34.95 M(18.24 M)31.96 M680 K244.83 M264.15 M
Net Cash Flow Business Acquisitions and Disposals(365.7 M)(413.04 M)(532.51 M)(348.67 M)(979.06 M)(1 B)
Issuance Purchase of Equity Shares(795.89 M)503.62 M838 K6.91 M170.25 M183.69 M
Issuance Repayment of Debt Securities507.07 M(165.84 M)435.41 M227.65 M884.72 M954.56 M
Net Cash Flow from Financing342.4 M322.49 M393.57 M161.83 M938.8 M1.01 B
Net Cash Flow from Investing(376.72 M)(446.45 M)(556.46 M)(372.97 M)(1.01 B)(1.03 B)
Net Cash Flow Investment Acquisitions and Disposals(500 K)(24.3 M)1.53 M(4.95 M)(17.23 M)(17.69 M)
Net Cash Flow from Operations69.09 M105.92 M194.77 M211.36 M313.92 M259.03 M
Effect of Exchange Rate Changes on Cash170 K(198 K)79 K461 K(577 K)(592.18 K)
Share Based Compensation34.88 M44.47 M18.33 M22.29 M31.6 M32.08 M

Focus Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Focus Financial or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Focus Financial stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Focus stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.17
β
Beta against DOW1.52
σ
Overall volatility
2.85
Ir
Information ratio -0.1

Focus Financial Volatility Alert

Focus Financial Partners exhibits very low volatility with skewness of -0.39 and kurtosis of 0.17. However, we advise investors to further study Focus Financial Partners technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Focus Financial's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Focus Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Focus Financial Implied Volatility

Focus Financial's implied volatility exposes the market's sentiment of Focus Financial Partners stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Focus Financial's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Focus Financial stock will not fluctuate a lot when Focus Financial's options are near their expiration.

Focus Financial Fundamentals Vs Peers

Comparing Focus Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Focus Financial's direct or indirect competition across all of the common fundamentals between Focus Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Focus Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Focus Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Focus Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Focus Financial to competition
FundamentalsFocus FinancialPeer Average
Return On Equity2.47 %(0.31) %
Return On Asset3.46 %(0.14) %
Profit Margin0.58 %(1.27) %
Operating Margin11.97 %(5.51) %
Current Valuation5.18 B16.62 B
Shares Outstanding65.26 M571.82 M
Shares Owned by Insiders0.03 %10.09 %
Shares Owned by Institutions100.54 %39.21 %
Number of Shares Shorted2.48 M4.71 M
Price to Earning283.24 X28.72 X
Price to Book2.81 X9.51 X
Price to Sales1.14 X11.42 X
Revenue1.8 B9.43 B
Gross Profit715.4 M27.38 B
EBITDA417.76 M3.9 B
Net Income10.41 M570.98 M
Cash and Equivalents316.49 M2.7 B
Cash per Share4.84 X5.01 X
Total Debt2.67 B5.32 B
Debt to Equity2.39 %48.70 %
Current Ratio4.43 X2.16 X
Book Value Per Share11.19 X1.93 K
Cash Flow from Operations313.92 M971.22 M
Short Ratio6.65 X4.00 X
Earnings Per Share0.11 X3.12 X
Price to Earnings To Growth0.48 X4.89 X
Number of Employees4.4 K18.84 K
Beta1.23-0.15
Market Capitalization2.05 B19.03 B
Total Asset1.57 B29.47 B
Retained Earnings(13.82 M)9.33 B
Z Score1.08.72
   Acquisition by Rajini Kodialam of 8403 shares of Focus Financial subject to Rule 16b-3 [view details]

Focus Financial Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Focus . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
Accumulation Distribution111433.0
Daily Balance Of Power1.114173
Rate Of Daily Change1.08
Day Median Price35.89
Day Typical Price36.23
Market Facilitation Index0.0
Price Action Indicator2.43

About Focus Financial Buy or Sell Advice

When is the right time to buy or sell Focus Financial Partners? Buying financial instruments such as Focus Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Focus Financial investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents65.18 M65.86 M310.68 M335.21 M
Total Assets2.65 B3.06 B4.71 B4.05 B

Use Investing Ideas to Build Portfolios

In addition to having Focus Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Munis Thematic Idea Now

Munis
Munis Theme
Funds or Etfs that invest in fixed income securities issued by states, cities, and towns as well as other public entities. The Munis theme has 40 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Munis Theme or any other thematic opportunities.
View All  Next Launch Munis
Please check Focus Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Focus Financial Partners information on this page should be used as a complementary analysis to other Focus Financial's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Piotroski F Score module to get Piotroski F Score based on binary analysis strategy of nine different fundamentals.

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Is Focus Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Focus Financial. If investors know Focus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Focus Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
89.52
Market Capitalization
2.1 B
Quarterly Revenue Growth YOY
0.36
Return On Assets
0.0377
Return On Equity
0.0593
The market value of Focus Financial Partners is measured differently than its book value, which is the value of Focus that is recorded on the company's balance sheet. Investors also form their own opinion of Focus Financial's value that differs from its market value or its book value, called intrinsic value, which is Focus Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Focus Financial's market value can be influenced by many factors that don't directly affect Focus Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Focus Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Focus Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Focus Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.