Business

Surveying Shares of European Metals Holdings Limited (ASX:EMH), Kraken Robotics Inc. (TSXV:PNG): Valuation Report

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for European Metals Holdings Limited ASX:EMH is 4.791934.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for European Metals Holdings Limited (ASX:EMH) is -71.070801.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for European Metals Holdings Limited (ASX:EMH) is -12.763735. This ratio is found by taking the current share price and dividing by earnings per share.

Diversification can be an important aspect of any investor’s portfolio. Investors may choose to spread out stock holdings between foreign stocks and stocks with different market capitalizations. Investors may have to first become aware of the risk associated with owning a wide variety of stocks. Owning stocks that belong to different industries may also be a help to the success of the portfolio. Often times, sectors may trade off being market leaders. Owning all one sector may leave too much risk exposed if the sector suddenly tanks and falls out of favor with investors. Investors may need to occasionally do a strategic review of the equity portion of the portfolio. Knowing exactly what is held may help the investor when the time comes to make some adjustments.

Volatility/PI

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of European Metals Holdings Limited (ASX:EMH) is 70.106300.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of European Metals Holdings Limited (ASX:EMH) is 104.261900.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 100.625300.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of European Metals Holdings Limited (ASX:EMH) for last month was 1.13514. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for European Metals Holdings Limited (ASX:EMH) is 0.54545.

Further, we can see that European Metals Holdings Limited (ASX:EMH) has a Shareholder Yield of -0.088888 and a Shareholder Yield (Mebane Faber) of -0.07335. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Checking in on some valuation rankings, European Metals Holdings Limited (ASX:EMH) has a Value Composite score of 85. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 86.

European Metals Holdings Limited (ASX:EMH) has a current MF Rank of 13976. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for European Metals Holdings Limited (ASX:EMH) is -0.429944.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of European Metals Holdings Limited (ASX:EMH) is 4.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of European Metals Holdings Limited (ASX:EMH). The name currently has a score of 50.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Investors might be trying to figure out the best way to approach the stock market. After creating a plan that includes a list of stocks to purchase, investors may be looking to gauge the best time to enter the trade. With markets still cruising along at high altitudes, investors may be worried about buying at the top. Most individuals would probably agree that getting out before the market drops would be the best play. Obviously this is much easier said than done. If the warning signs were blatant, everyone would know exactly when to sell and when to re-buy. When the stock market has a big decline, the natural instinct is generally to sell in order to protect gains or eliminate further losses. Trying to time the market can have negative implications for investors who are not prepared to handle extremely volatile market conditions. Being prepared for any sudden change in the overall economy or stock market conditions may help the investor stay afloat for the long haul.

The Price to Book ratio for Kraken Robotics Inc. TSXV:PNG is 25.721603.  The Price to book ratio is the current share price of a company divided by the book value per share.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Kraken Robotics Inc. (TSXV:PNG) is -47.656110.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Kraken Robotics Inc. (TSXV:PNG) is -40.518039. This ratio is found by taking the current share price and dividing by earnings per share.

As the next round of earnings reports come into the spotlight next quarter, investors may be deciding how to get into the best position to make the most profitable trades. Earnings reports have the ability to influence stock prices dramatically. Sometimes it can be hard to figure out which way the price will go even if the reported numbers are up to snuff. Some investors enjoy the frantic trading opportunities around earnings reports, and others will stay as far away as possible. Even if the investor isn’t planning on making any moves during earnings season, it may be wise to follow what companies are reporting. If the numbers from a certain holding come in way out of whack, it may be necessary to do some in-depth research to try and find out the reason. Investors that make sure that all the bases are covered will typically find it easier to make sense out of certain anomalies that pop up in the markets from time to time. Putting in the extra time and effort to understand the ins and outs of a particular stock may help boost the novice investor up to the next level. Every investor wants their trades to be profitable, and doing that little extra piece of homework could be just what the finance doctor ordered for staying on top of the stock market.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Kraken Robotics Inc. (TSXV:PNG) is -0.377492.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Kraken Robotics Inc. (TSXV:PNG) is 6.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of Kraken Robotics Inc. (TSXV:PNG). The name currently has a score of 50.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Kraken Robotics Inc. (TSXV:PNG) has a current MF Rank of 13981. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Further, we can see that Kraken Robotics Inc. (TSXV:PNG) has a Shareholder Yield of -0.272763 and a Shareholder Yield (Mebane Faber) of -0.31158. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Checking in on some valuation rankings, Kraken Robotics Inc. (TSXV:PNG) has a Value Composite score of 84. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 88.

Volatility/PI
Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Kraken Robotics Inc. (TSXV:PNG) is 71.221900.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Kraken Robotics Inc. (TSXV:PNG) is 97.058200.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 98.508100.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Kraken Robotics Inc. (TSXV:PNG) for last month was 0.95918. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Kraken Robotics Inc. (TSXV:PNG) is 2.76471.

Stock market investors are typically searching for solid quality companies to help boost the portfolio. There are plenty of quality companies out there, the tricky part may be determining what constitutes as quality. Many investors look for companies that are solid sales leaders within a market that is growing. Going further, investors may be studying a company’s proven track record and gauging the competence of current management. Adding other factors such as brand recognition and prospects for steady growth, investors may eventually find a company that is worth taking the risk for future returns.

Leave a Reply

Your email address will not be published. Required fields are marked *

*