Are Valeo SA (ENXTPA:FR), Gran Colombia Gold Corp. (TSX:GCM) Attractively Priced at Current Levels?

Valeo SA (ENXTPA:FR) has a current MF Rank of 1522. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to detect 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.

Investors are constantly trying to make acute moves in the equity market. Taking stock of personal strengths and weaknesses can aid the investor attack the market with heightened focus. Often times, individuals may fall into traps that could have been avoided. Coming up with a sound investment plan and setting realistic expectations may aid the inexperienced investor become better prepared and focused. Positive returns are attainable with the proper preparation and dedication. Investors working with a longer-term plan might be approaching the equity market from a completely nonstandard angle than a shorter-term trader. Investors who plan to be in the market for a long stage of time may not be as concerned about the day to day fluctuations as short-term traders. 

Checking in on some valuation rankings, Valeo SA (ENXTPA:FR) has a Value Composite score of 6. 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 firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is at present sitting at 4.

Valeo SA (ENXTPA:FR) has a Price to Book ratio of 1.30. This ratio is determined by dividing the current stock price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some alternate ratios, the firm has a Price to Cash Flow ratio of 2.81, and a current Price to Earnings ratio of 7.05. The P/E ratio is one of the most common ratios used for figuring out whether a firm is overvalued or undervalued.

Shifting gears, we can see that Valeo SA (ENXTPA:FR) has a Q.i. Value of 9. 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 firm tends to be.

Watching some historical volatility numbers on shares of Valeo SA (ENXTPA:FR), we can see that the 12 month volatility is right now 44.38. The 6 month volatility is 51.99, and the 3 month is spotted at 68.50. Following volatility data can aid sum how much the share price has fluctuated over the specified time stage. Although past volatility action may aid project future stock volatility, it may also be vastly nonstandard when taking into account alternate factors that may be driving price action during the measured time stage. 

At the time of writing, Valeo SA (ENXTPA:FR) has a Piotroski F-Score of 3. The F-Score may aid locate companies with strengthening balance sheets. The score may also be used to detect the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the firm 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 alternate end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in looking the Gross Margin score on shares of Valeo SA (ENXTPA:FR). The name at present has a score of 4. 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 Shareholder Yield is a way that investors can see how much money shareholders are receiving from a firm through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Valeo SA (ENXTPA:FR) is 0.05.  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 accelerate the shareholder value, too.  Another way to think through the effectiveness of a firm’s distributions is by considering at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Valeo SA ENXTPA:FR is -0.22.  This number is determined by considering at the add up of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick peek at some historical share price index data. Valeo SA (ENXTPA:FR) right now has a 10 month price index of 0.43. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one signals an accelerate in stock price over the stage. A ratio lower than one implies that the price has decreased over that time stage. Looking at some nonstandard time periods, the 12 month price index is 0.44, the 24 month is 0.50, and the 36 month is 0.60. Narrowing in a bit closer, the 5 month price index is 0.51, the 3 month is 0.66, and the 1 month is at present 0.90.

A highly common way to study stocks is through fundamental analysis. Investors examining the fundamentals may be analyzing the underlying factors that can affect the performance of a particular firm. When focusing in on a specific firm, investors will look at firm management, financial information, business prospects, and industry competition. The goal of digging into the numbers is frequently times a way to sum the current value of a firm and try to gauge the value into the future. Zooming in on the paramount statistics of a firm can aid provide a glimpse of the firm’s overall health.

Gran Colombia Gold Corp. (TSX:GCM) has a current Magic Formula rank of 1399. The formula which was developed by hedge fund manager Joel Greenblatt, is intended to detect 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.

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Some equity market investors may abide to the saying, nothing ventured nothing gained. Others may operate by following the saying slow and steady wins the race. The correct move for one investor may not be the same for another. Some may pick to go all in, while others may look to reduce uncertainty with stable long-term staple companies. Active equity investors may be forced to make challenging decisions at some point, but working challenging and being prepared may prove to be a portfolio booster. Dedicated investors are frequently willing to put in the further hours in order to make sure no stone is left unturned.

The Value Composite One (VC1) is a method that investors use to think through a firm’s value.  The VC1 of Gran Colombia Gold Corp. (TSX:GCM) is 8.  A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm.  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 Gran Colombia Gold Corp. (TSX:GCM) is 24.

Shifting gears, we can see that Gran Colombia Gold Corp. (TSX:GCM) has a Q.i. Value of 1. 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 firm tends to be.

Watching some historical volatility numbers on shares of Gran Colombia Gold Corp. (TSX:GCM), we can see that the 12 month volatility is right now 43.90. The 6 month volatility is 46.63, and the 3 month is spotted at 51.10. Following volatility data can aid sum how much the share price has fluctuated over the specified time stage. Although past volatility action may aid project future stock volatility, it may also be vastly nonstandard when taking into account alternate factors that may be driving price action during the measured time stage. 

Investors may be interested in looking the Gross Margin score on shares of Gran Colombia Gold Corp. (TSX:GCM). The name at present has a score of 3. 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.

At the time of writing, Gran Colombia Gold Corp. (TSX:GCM) has a Piotroski F-Score of 6. The F-Score may aid locate companies with strengthening balance sheets. The score may also be used to detect the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the firm 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 alternate end, a stock with a score from 0-2 would be viewed as weak.

Volatility

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 firm has a low volatility percentage or not over the season of a year.  The Volatility 12m of Gran Colombia Gold Corp. (TSX:GCM) is 43.90.  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 firm 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 Gran Colombia Gold Corp. (TSX:GCM) is 51.10.  The Volatility 6m is the same, except measured over the season of six months.  The Volatility 6m is 46.63.

Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average

The Return on Invested Capital (aka ROIC) for Gran Colombia Gold Corp. (TSX:GCM) is 0.17. The Return on Invested Capital is a ratio that determines whether a firm is profitable or not. It tells investors how well a firm 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 gadget in evaluating the quality of a firm’s ROIC over the season of five years. The ROIC Quality of Gran Colombia Gold Corp. (TSX:GCM) is 2.03. 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 Gran Colombia Gold Corp. (TSX:GCM) is -0.01.

There are many nonstandard tools to think through whether a firm is profitable or not.  One of the most crowd-pleasing ratios is the “Return on Assets” (aka ROA).  This score signals how profitable a firm is relative to its total assets.  The Return on Assets for Gran Colombia Gold Corp. (TSX:GCM) is -0.02.  This number is determined by dividing net income after tax by the firm’s total assets.  A firm that manages their assets well will have a higher return, while a firm that manages their assets poorly will have a lower return.

It may be crucial for many investors to decide the right time to buy or sell a stock. Veteran investors may seem like they have it all figured out, and amateurs may feel like they are swimming upstream. Seasoned traders may have spent many years monitoring market ebbs and flows. Knowing when to take profits or cut losses can be a tough skill to achieve. It might be challenging letting go of a well researched stock that hasn’t been performing well. Being able to exit a trade that has gone south can be a portfolio saver in the long run.

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