01 Communique Laboratory Inc. (TSXV:ONE): Are Shares Undervalued with the MF of 15684?

01 Communique Laboratory Inc. (TSXV:ONE) has a current MF Rank of 15684. The Magic Formula was developed by hedge fund manager Joel Greenblatt, the intention of the formula is to uncover high quality companies that are trading at an attractive price. 

Even extremely solid stocks can sporadically face setbacks. There is no shortage of news regarding publically traded companies, and investors frequently have the tricky job of deciding what information is worth taking a closer look at. Making trading decisions based on one piece of data may not be the optimal duration of action. When there is negative information about a outfit, investors may be quick to sell without gazing deeper into the numbers. On the flip side, investors may be super quick to buy on good news without fully researching the stock. 

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of 01 Communique Laboratory Inc. (TSXV:ONE) is 0.764868.  Free cash flow (FCF) is the cash produced by the outfit minus capital expenditure.  This cash is what a outfit uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  

The Free Cash Flow Score (FCF Score) is a useful gizmo in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of 01 Communique Laboratory Inc. (TSXV:ONE) is 1.678630.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

The Return on Invested Capital (aka ROIC) for 01 Communique Laboratory Inc. (TSXV:ONE) is -21.250000.  The Return on Invested Capital is a ratio that determines whether a outfit is profitable or not.  It tells investors how well a outfit is turning their capital into profits.  The ROIC is determined by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is determined by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a gizmo in evaluating the quality of a outfit’s ROIC over the duration of five years.  The ROIC Quality of 01 Communique Laboratory Inc. (TSXV:ONE) is -0.431852.  This is determined by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is determined using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of 01 Communique Laboratory Inc. (TSXV:ONE) is -2.383762.

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a outfit through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of 01 Communique Laboratory Inc. (TSXV:ONE) is 0.000000.  This percentage is determined by adding the dividend yield plus the percentage of shares repurchased.  Dividends are a common way that companies distribute cash to their shareholders.  Similarly, cash repurchases and a reduction of debt can jolt the shareholder value, too.  Another way to understand the effectiveness of a outfit’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of 01 Communique Laboratory Inc. TSXV:ONE is -0.15011.  This number is determined by gazing at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Investors are usually trying to take advantage of every possible market scenario. Tracking the market from many other angles can aid the investor put together the big share market picture. Many investors have the tendency to get caught up in all the headlines and news of the day. Sometimes that news will be relevant, but nonstandard times it will just be noise. Everyone has an opinion on where the share market is headed, but nobody knows for sure. Studying the fundamentals and pertinent economic numbers can provide a solid foundation for investors to build from.

The Value Composite One (VC1) is a method that investors use to understand a outfit’s value.  The VC1 of 01 Communique Laboratory Inc. (TSXV:ONE) is 87.  A outfit with a value of 0 is thought to be an undervalued outfit, while a outfit with a value of 100 is considered an overvalued outfit.  The VC1 is determined using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is determined with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of 01 Communique Laboratory Inc. (TSXV:ONE) is 83.

Investors may be interested in studying the Gross Margin score on shares of 01 Communique Laboratory Inc. (TSXV:ONE). The name right now has a score of 2.00000. 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.

ERP5 Rank

The ERP5 Rank is an investment gizmo that analysts use to spot undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of 01 Communique Laboratory Inc. (TSXV:ONE) is 17690. The lower the ERP5 rank, the more undervalued a outfit is thought to be.

C-Score - Montier

01 Communique Laboratory Inc. (TSXV:ONE) right now has a Montier C-score of 2.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to add up the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing nonstandard current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

F Score

At the time of writing, 01 Communique Laboratory Inc. (TSXV:ONE) has a Piotroski F-Score of 2. The F-Score may aid spot companies with strengthening balance sheets. The score may also be used to uncover the weak performers. Joseph Piotroski developed the F-Score which employs nine other variables based on the outfit financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the nonstandard end, a stock with a score from 0-2 would be viewed as weak.

Investors might be gazing high and low for quality stocks that have fallen out of favor with the investing community. There are plenty of stocks that get continuous coverage from the big media outlets, but there are many others that may be hiding behind the scenes. Conducting thorough stock due diligence can aid the investor isolate certain stocks that might be ready for a near-term bounce. With the share market still trading near record levels, investors will be gazing for any opportunity to pounce on shares that might have been left behind for whatever reason. 

The MF Rank developed by hedge fund manager Joel Greenblatt, is intended uncover 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. Momentum Biofuels, Inc. (OTCPK:MMBF) has a current MF Rank of 17319. 
Every investor strives to maximize returns in the share market. To achieve success in the market, investors may take many other paths. Because there are so many other strategies, one investor’s road may end up being quite other than another. Over time, the investor may must overcome various difficulties. Trading the share market can indeed be exhilarating, but it can also cause lots of strife. Some investors may be able to be much more aggressive when creating the stock portfolio. Others may have a much lower exposure threshold and single out to play it a bit safer. Because humans are prone to error, there may be many mistakes made along the way. Investors who are able to identify mistakes and learn from them may find themselves in a much better position down the road.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Momentum Biofuels, Inc. (OTCPK:MMBF) is 0.945860.  Free cash flow (FCF) is the cash produced by the outfit minus capital expenditure.  This cash is what a outfit uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a useful gizmo in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Momentum Biofuels, Inc. (OTCPK:MMBF) is 1.580123.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Investors may be interested in studying the Gross Margin score on shares of Momentum Biofuels, Inc. (OTCPK:MMBF). The name right now 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.

The Return on Invested Capital (aka ROIC) for Momentum Biofuels, Inc. (OTCPK:MMBF) is -0.390440.  The Return on Invested Capital is a ratio that determines whether a outfit is profitable or not.  It tells investors how well a outfit is turning their capital into profits.  The ROIC is determined by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is determined by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a gizmo in evaluating the quality of a outfit’s ROIC over the duration of five years.  The ROIC Quality of Momentum Biofuels, Inc. (OTCPK:MMBF) is .  This is determined by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is determined using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of Momentum Biofuels, Inc. (OTCPK:MMBF) is .

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a outfit through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Momentum Biofuels, Inc. (OTCPK:MMBF) is -0.004103.  This percentage is determined by adding the dividend yield plus the percentage of shares repurchased.  Dividends are a common way that companies distribute cash to their shareholders.  Similarly, cash repurchases and a reduction of debt can jolt the shareholder value, too.  Another way to understand the effectiveness of a outfit’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Momentum Biofuels, Inc. OTCPK:MMBF is -0.60381.  This number is determined by gazing at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The Value Composite One (VC1) is a method that investors use to understand a outfit’s value.  The VC1 of Momentum Biofuels, Inc. (OTCPK:MMBF) is 97.  A outfit with a value of 0 is thought to be an undervalued outfit, while a outfit with a value of 100 is considered an overvalued outfit.  The VC1 is determined using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is determined with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Momentum Biofuels, Inc. (OTCPK:MMBF) is 95.

Key Ratios

Momentum Biofuels, Inc. (OTCPK:MMBF) right now has a current ratio of 0.00. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply determined by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain outfit to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the outfit may be more capable of paying back its obligations.

Momentum Biofuels, Inc. (OTCPK:MMBF)’s Leverage Ratio was recently noted as 0.178870. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a outfit is relative to the amount of debt on the balance sheet. This ratio is frequently viewed as one calculate of the financial health of a outfit.

The Price to book ratio is the current stock price of a outfit divided by the book value per share.  The Price to Book ratio for Momentum Biofuels, Inc. OTCPK:MMBF is 2.693442.  A lower price to book ratio shows that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a outfit’s value.  The Price to Cash Flow for Momentum Biofuels, Inc. (OTCPK:MMBF) is -4.694285.  This ratio is determined by dividing the market value of a outfit by cash from operating activities.  Additionally, the price to earnings ratio is another leading way for analysts and investors to understand a outfit’s profitability.  The price to earnings ratio for Momentum Biofuels, Inc. (OTCPK:MMBF) is -0.297824. This ratio is found by taking the current stock price and dividing by EPS.

Investors are constantly hunting for bargains when picking stocks. There may be times when a particular stock might be flying under the radar, but is usually only a matter of time before someone catches on. Investors might be widening their stock focus to find these undervalued names. This may include small caps, foreign stocks, or stocks that just haven’t become household names. Expanding the scope of interest may aid the investor spot areas of future opportunity. Although there are plenty of investors who will stick to the solid, historically steady stocks, there are plenty more that are searching for that next big winner that will give the portfolio a big bump.

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