Are the Quant Signals Leaning a Certain Way on International Petroleum Corporation (TSX:IPCO)?

Here we will take a look at several key ratios for International Petroleum Corporation (TSX:IPCO), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the enterprise’s net asset value per share to it’s current price.  This is useful in determining how the market values the outfit compared to it’s actual worth.  The Book to Market value of International Petroleum Corporation at present stands at 1.006780. 

In terms of EBITDA Yield, International Petroleum Corporation (TSX:IPCO) at present has a value of 0.645558. This value is derived by dividing EBITDA by Enterprise Value.

International Petroleum Corporation (TSX:IPCO) at present has a current ratio of 1.27. 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.

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 International Petroleum Corporation TSX:IPCO is 0.993265.  A lower price to book ratio signals 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 International Petroleum Corporation (TSX:IPCO) is 1.496314.  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 crowd-pleasing way for analysts and investors to think through a outfit’s profitability.  The price to earnings ratio for International Petroleum Corporation (TSX:IPCO) is 4.493760. This ratio is found by taking the current stock price and dividing by EPS.

Looking at some ROIC (Return on Invested Capital) numbers, International Petroleum Corporation (TSX:IPCO)’s ROIC is 0.144102. 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. 

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 International Petroleum Corporation (TSX:IPCO) is .  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 gadget 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 International Petroleum Corporation (TSX:IPCO) is .  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 Gross Margin Score is determined by studying at the Gross Margin and the overall stability of the outfit over the duration of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of International Petroleum Corporation (TSX:IPCO) is 50.00000.  The more stable the outfit, the lower the score.  If a outfit is less stable over the duration of time, they will have a higher score.

At the time of writing, International Petroleum Corporation (TSX:IPCO) has a Piotroski F-Score of 4. The F-Score may aid spot companies with strengthening balance sheets. The score may also be used to locate the weak performers. Joseph Piotroski developed the F-Score which employs nine alternate 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 different end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that International Petroleum Corporation (TSX:IPCO) has a Q.i. Value of 1.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to aid identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the outfit tends to be.

Watching some historical volatility numbers on shares of International Petroleum Corporation (TSX:IPCO), we can see that the 12 month volatility is at present 50.315500. The 6 month volatility is 53.398200, and the 3 month is spotted at 52.773700. Following volatility data can aid quantify how much the share price has fluctuated over the specified time season. Although past volatility action may aid project future stock volatility, it may also be vastly alternate when taking into account different factors that may be driving price action during the measured time season. 

In trying to think through the current valuation of AVJennings Limited (ASX:AVJ) shares, we note that the Book to Market ratio of the shares stands at 1.612123. It’s commonly accepted that a Book to Market ratio greater than one signals 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 difficult 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 must think through a way to make the selection process manageable. Some investors may opt for to start with industry due diligence 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.

AVJennings Limited (ASX:AVJ) at present has a current ratio of 4.45. 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 think through whether a outfit is profitable or not. One of the most crowd-pleasing ratios is the “Return on Assets” (aka ROA). This score signals how profitable a outfit is relative to its total assets. The Return on Assets for AVJennings Limited (ASX:AVJ) is 0.043978. 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.

AVJennings Limited (ASX:AVJ)’s Leverage Ratio was recently noted as 0.205747. 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 gadget 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 AVJennings Limited (ASX:AVJ) is 2757. 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 studying at the cash generated by operations of the outfit. The Free Cash Flow Yield 5 Year Average of AVJennings Limited (ASX:AVJ) is -0.005840.

Ever wonder how investors predict positive stock 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 AVJennings Limited (ASX:AVJ) is at present 0.90198.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive stock 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 studying at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of AVJennings Limited (ASX:AVJ) is 4922. 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 signals whether a stock is a desirable purchase.  Investors look at the Volatility 12m to think through if a outfit has a low volatility percentage or not over the duration of a year.  The Volatility 12m of AVJennings Limited (ASX:AVJ) is 19.115900.  This is determined by taking weekly log normal returns and standard deviation of the stock 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 stock price over 3 months.  The Volatility 3m of AVJennings Limited (ASX:AVJ) is 26.305400.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 23.473600.

Yield

After a recent scan, we can see that AVJennings Limited (ASX:AVJ) has a Shareholder Yield of 0.053009 and a Shareholder Yield (Mebane Faber) of 0.18752. 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.

Leave a Comment