Tompkins Financial Corporation Financial Analysis, Essay Example

Sector: Tomkins Financial Corporation is a firm that lies in the sector of ‘Money Center Bank’.

Market Capitalization: The total market capitalization of this corporation is $ 420,000.

Total Assets: The total assets of company are $5 billion mostly are financial services.

Profile of Tompkins Financial Corporation

Tomkins Financial Corporation is the holding company of financial services with the headquarters in Ithaca, New York. The corporation has net assets worth $5 billion and the roots of this company can be traced back to the year 1836, i.e. Tompkins Trust Company. Over a period of 175 years, this company has been the partner to one of the most imaginable ways to the clients in helping them reach their financial objectives. The corporation provides its clients with exceptional service and high quality financial products. The company aims to help the societies by reinvesting their deposits as loans to the businesses and local families. They do this by supporting the domestic corporations. This company is the parent company of Tompkins Trust, Tompkins Mahopac Bank, Bank of Castile and the VIST Bank Tompkins. The company operate altogether of 67 services of banking in Pennsylvania and New York.

The other core product of the companies insurance where it can help the businesses and individuals to get the coverage required for the savings of cost and give exceptional services with the help of their insurance agencies. The company is also involved in the wealth management, and collaborates with the clients as the trusted advisors. They provide the resources and wealth to help their clients build, preserve and protect their wealth with the help of financial advisors. The company commits in building long term relations with the shareholders, societies and clients. On the other hand, it is also responsible for enhancing the rate of growth and achieving a robust ROE. The company is regarded as the nation’s best performing and recognized financial corporations with analysts such as KBW, Stanton institute and Sandler O’Neil & Partners.

Financial Analysis and Summary

The share price of the corporation has seen a sight change over the years. The present share price of the company is $53.09. The increase is share price is because of the increase in revenues from the last year 2013 to the present years. This is one of the main reason because of the increase in the sales percentage. The company showed a positive Net profit margin in the year 2014 which is around 20.41%. The return on equity is around 11% whereas the invested capital return is 6%. This can change if the company can tackle its debt as the Total debt to Equity ratio is 110.81. The company’s price earnings ratio is 15.22 and the Earnings per share (EPS) is 3.52. These figures indicates that the company is not paying a significant amount to its shareholders and the yield on dividends is low. The company’s return on asset is a meager 1.02% which is an alarming situation. The reason is that the company is too much financially leveraged, they need to reduce their operating expenses. This is another reason, why the share price is overpriced and the shareholders are not paid according to the financial position of the company. With the net assets worth $5 billion the company needs to enhance its return on assets.

For the Equity Multiplier we can see that for Thompkins, the ROA is low and that is why the equity multiplier is lower than the equity.