The Current Ratio of New Media Investment Group Inc. (NYSE:NEWM) is 1.25. The Current Ratio is used by investors to figure out whether a enterprise can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the enterprise’s total current liabilities. A high current ratio implies that the enterprise has little trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) implies that the enterprise may have trouble paying their short term obligations.
Investors will be paying extraordinary close attention to enterprise earnings reports during this current stage. With stocks bordering on all-time highs, any substantial earnings beats may propel stocks to even greater heights. On the flip side, stocks that may be overvalued could see a significant correction if earnings disappoint. Every earnings stage has its share of big winners and big losers. Trying to project the stocks that will post large beats for the quarter can be tricky. Even if the homework points to a enterprise handily beating on the earnings front, the stock may not always react as expected. Trading around earnings reports can get quite dicey for even the most seasoned investors.
F Score, ERP5 and Magic Formula
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 enterprise’s stock is valuable or not. The Piotroski F-Score of New Media Investment Group Inc. (NYSE:NEWM) is 5. A score of nine implies a high value stock, while a score of one implies 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.
The ERP5 Rank is an investment gizmo that analysts use to unveil undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of New Media Investment Group Inc. (NYSE:NEWM) is 3803. The lower the ERP5 rank, the more undervalued a enterprise is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable enterprise trading at a good price. The formula is determined by gazing at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of New Media Investment Group Inc. (NYSE:NEWM) is 4783. A enterprise with a low rank is considered a good enterprise to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
We can now take a quick gander at some historical share price index data. New Media Investment Group Inc. (NYSE:NEWM) at present has a 10 month price index of 0.93354. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one implies an boost in equity price over the timeframe. A ratio lower than one suggests that the price has decreased over that time timeframe. Looking at some different time periods, the 12 month price index is 0.97392, the 24 month is 1.06884, and the 36 month is 1.06915. Narrowing in a bit closer, the 5 month price index is 0.81170, the 3 month is 0.91520, and the 1 month is at present 0.88917.
The Leverage Ratio of New Media Investment Group Inc. (NYSE:NEWM) is 0.305749. Leverage ratio is the total debt of a enterprise 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 sum how much of a enterprise’s capital comes from debt. With this ratio, investors can better estimate how well a enterprise will be able to pay their long and short term financial obligations.
C-Score
New Media Investment Group Inc. (NYSE:NEWM) at present 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 measure 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 alternate current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.
Investors might be trying to think through how to play the equity market at current levels. The optimist may see much more upward action in the future while the pessimist may be waiting for the impending disaster. Buying into the market at these levels will no doubt come with a bit of caution. Even at these levels, there may still be some good buys. The average individual investor may are required to spend a little more time doing the research, but it may pay out of kilter handsomely if the equity market decides to break out higher. As companies start to report quarterly earnings, investors will be watching to see what types of trends emerge. A generally upbeat earnings stage may give the bulls more strength to breakout and continue the charge higher into the later stages of the year.
Volatility & Price
Stock volatility is a percentage that implies whether a stock is a desirable purchase. Investors look at the Volatility 12m to figure out if a enterprise has a low volatility percentage or not over the stage of a year. The Volatility 12m of New Media Investment Group Inc. (NYSE:NEWM) is 22.821000. 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 enterprise 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 New Media Investment Group Inc. (NYSE:NEWM) is 28.414600. The Volatility 6m is the same, except measured over the stage of six months. The Volatility 6m is 26.378100.
Shareholder Yield
The Q.i. Value of New Media Investment Group Inc. (NYSE:NEWM) is 20.00000. The Q.i. Value is a useful gizmo in determining if a enterprise is undervalued or not. The Q.i. Value is determined using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the enterprise is thought to be. The Value Composite One (VC1) is a method that investors use to figure out a enterprise’s value. The VC1 of New Media Investment Group Inc. (NYSE:NEWM) is 19. A enterprise with a value of 0 is thought to be an undervalued enterprise, while a enterprise with a value of 100 is considered an overvalued enterprise. 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 New Media Investment Group Inc. (NYSE:NEWM) is 30.
