Alon Natural Gas Exploration Ltd. (TASE:ALGS) Quant Signal Evaluation & Review

In trying to figure out the current valuation of Alon Natural Gas Exploration Ltd. (TASE:ALGS) shares, we note that the Book to Market ratio of the shares stands at 0.223755. It’s commonly accepted that a Book to Market ratio greater than one points out that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) sometimes are not represented on a balance sheet. The ratio is determined by dividing the market price per share by book value per share.  

When placing crucial earned money at uncertainty, investors will want to look at all the angles in order to make sure that no stone is left unturned when building the stock portfolio. With so many alternate stocks available to trade, investors may are required to determine a way to make the selection process manageable. Some investors may select to start with industry homework first and eventually filter down to individual stock picks. Others may want to start at the individual stock level and go from there. Whatever the approach the investor chooses, placing in the time and effort might greatly aid the long-term performance of the stock portfolio.

Alon Natural Gas Exploration Ltd. (TASE:ALGS) at present has a current ratio of 1.24. 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.

Return on Assets

There are many alternate tools to figure out whether a outfit is profitable or not. One of the most prime ratios is the “Return on Assets” (aka ROA). This score points out how profitable a outfit is relative to its total assets. The Return on Assets for Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 0.088445. This number is determined by dividing net income after tax by the outfit’s total assets. A outfit that manages their assets well will have a higher return, while a outfit that manages their assets poorly will have a lower return.

Alon Natural Gas Exploration Ltd. (TASE:ALGS)’s Leverage Ratio was recently noted as 0.617237. 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 sometimes viewed as one quantify of the financial health of a enterprise.

ERP5 Rank

The ERP5 Rank is an investment resource 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 Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 3797. The lower the ERP5 rank, the more undervalued a outfit is thought to be.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is determined by taking the five year average free cash flow of a outfit, and dividing it by the current outfit value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a outfit is calculated by viewing at the cash generated by operations of the outfit. The Free Cash Flow Yield 5 Year Average of Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 0.107399.

Ever wonder how investors predict positive equity price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for Alon Natural Gas Exploration Ltd. (TASE:ALGS) is presently .  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive equity price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

Magic Formula

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable outfit trading at a good price. The formula is determined by viewing at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 1144. A outfit with a low rank is considered a good outfit to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Stock volatility is a percentage that points out whether a stock is a desirable purchase.  Investors look at the Volatility 12m to figure out if a outfit has a low volatility percentage or not over the duration of a year.  The Volatility 12m of Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 28.250900.  This is determined by taking weekly log normal returns and standard deviation of the equity price over one year annualized.  The lower the number, a outfit is thought to have low volatility.  The Volatility 3m is a similar percentage calculated by the daily log normal returns and standard deviation of the equity price over 3 months.  The Volatility 3m of Alon Natural Gas Exploration Ltd. (TASE:ALGS) is 21.150900.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 21.179400.

Yield

After a recent scan, we can see that Alon Natural Gas Exploration Ltd. (TASE:ALGS) has a Shareholder Yield of 0.082008 and a Shareholder Yield (Mebane Faber) of 0.12007. The first value is determined 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 enterprise is giving back to shareholders via a few alternate 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.

In taking a look at some key indicators for Handicare Group AB (publ) (OM:HANDI), we note that the current Book to Market value for the enterprise is at 0.781291. The Book to Market or BTM is determined as Market Value (or Stock Price)/Book Value. Investors sometimes look for shares with high Book to Market value as this could indicate that the equity is priced below market value and underpriced.

A ratio of a publicly-traded outfit’s book value to its market value. That is, the BTM is a comparison of a outfit’s net asset value per share to its equity price. This is a helpful resource to aid figure out how the market prices a outfit relative to its actual worth. A ratio greater than one points out an undervalued outfit, while a ratio less than one means a outfit is overvalued. Value managers seek out companies with high BTMs for their portfolios.

Additional Tools

There are many alternate tools to figure out whether a outfit is profitable or not.  One of the most prime ratios is the “Return on Assets” (aka ROA).  This score points out how profitable a outfit is relative to its total assets.  The Return on Assets for Handicare Group AB (publ) (OM:HANDI) is 0.030631.  This number is determined by dividing net income after tax by the outfit’s total assets.  A outfit that manages their assets well will have a higher return, while a outfit that manages their assets poorly will have a lower return.

Looking at some ROIC (Return on Invested Capital) numbers, Handicare Group AB (publ) (OM:HANDI)’s ROIC is 0.306022. The ROIC 5 year average is and the ROIC Quality ratio is . ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a enterprise is at turning capital into profits. 

In terms of EBITDA Yield, Handicare Group AB (publ) (OM:HANDI) presently has a value of 0.081117. This value is derived by dividing EBITDA by Enterprise Value.

The Current Ratio of Handicare Group AB (publ) (OM:HANDI) is 2.21. The Current Ratio is used by investors to figure out whether a outfit can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the outfit’s total current liabilities. A high current ratio points out that the outfit might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) points out that the outfit may have trouble paying their short term obligations.

The Leverage Ratio of Handicare Group AB (publ) (OM:HANDI) is 0.303343. Leverage ratio is the total debt of a outfit divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can quantify how much of a outfit’s capital comes from debt. With this ratio, investors can better estimate how well a outfit will be able to pay their long and short term financial obligations.

Piotroski F Score

The Piotroski F-Score is a scoring system between 1-9 that determines a enterprise’s financial strength. The score helps figure out if a outfit’s stock is valuable or not. The Piotroski F-Score of Handicare Group AB (publ) (OM:HANDI) is 5. A score of nine points out a high value stock, while a score of one points out a low value stock. The score is determined by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also determined by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also calculated by change in gross margin and change in asset turnover.

Checking in on some valuation rankings, Handicare Group AB (publ) (OM:HANDI) has a Value Composite score of 30. 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 outfit with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued outfit. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is presently sitting at 28.

Volatility/C Score

Stock volatility is a percentage that points out whether a stock is a desirable purchase.  Investors look at the Volatility 12m to figure out if a outfit has a low volatility percentage or not over the duration of a year.  The Volatility 12m of Handicare Group AB (publ) (OM:HANDI) is 36.735500.  This is determined by taking weekly log normal returns and standard deviation of the equity price over one year annualized.  The lower the number, a outfit is thought to have low volatility.  The Volatility 3m is a similar percentage calculated by the daily log normal returns and standard deviation of the equity price over 3 months.  The Volatility 3m of Handicare Group AB (publ) (OM:HANDI) is 33.662400.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 30.555500.

Handicare Group AB (publ) (OM:HANDI) presently 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 sum 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 different current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

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