How Does the MF Rank Score Look For These Stocks GrainCorp Limited (ASX:GNC), Mexco Energy Corporation (AMEX:MXC)?

GrainCorp Limited (ASX:GNC) has a current MF Rank of 9114. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to unveil 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 share 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 share 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, GrainCorp Limited (ASX:GNC) has a Value Composite score of 27. 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 enterprise with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued enterprise. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is presently sitting at 25.

GrainCorp Limited (ASX:GNC) has a Price to Book ratio of 1.08. This ratio is determined by dividing the current equity 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 enterprise has a Price to Cash Flow ratio of 11.48, and a current Price to Earnings ratio of 29.85. The P/E ratio is one of the most common ratios used for figuring out whether a enterprise is overvalued or undervalued.

Shifting gears, we can see that GrainCorp Limited (ASX:GNC) has a Q.i. Value of 41. 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 enterprise tends to be.

Watching some historical volatility numbers on shares of GrainCorp Limited (ASX:GNC), we can see that the 12 month volatility is right now 26.19. The 6 month volatility is 39.32, and the 3 month is spotted at 52.15. Following volatility data can aid quantify how much the equity 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, GrainCorp Limited (ASX:GNC) has a Piotroski F-Score of 4. The F-Score may aid unveil companies with strengthening balance sheets. The score may also be used to unveil the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the enterprise 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 gazing the Gross Margin score on shares of GrainCorp Limited (ASX:GNC). The name presently has a score of 15. 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 enterprise through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of GrainCorp Limited (ASX:GNC) is 0.02.  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 boost the shareholder value, too.  Another way to think through the effectiveness of a enterprise’s distributions is by studying at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of GrainCorp Limited ASX:GNC is -0.08.  This number is determined by studying at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick gander at some historical equity price index data. GrainCorp Limited (ASX:GNC) right now has a 10 month price index of 1.27. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one suggests an boost in equity price over the stage. A ratio lower than one signals that the price has decreased over that time stage. Looking at some other time periods, the 12 month price index is 1.21, the 24 month is 1.08, and the 36 month is 1.20. Narrowing in a bit closer, the 5 month price index is 1.24, the 3 month is 1.17, and the 1 month is presently 1.16.

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 enterprise. When focusing in on a specific enterprise, investors will look at enterprise management, financial information, business prospects, and industry competition. The goal of digging into the numbers is sometimes times a way to sum the current value of a enterprise and try to gauge the value into the future. Zooming in on the imperative statistics of a enterprise can aid provide a glimpse of the enterprise’s overall health.

Mexco Energy Corporation (AMEX:MXC) has a current Magic Formula rank of 10148. The formula which was developed by hedge fund manager Joel Greenblatt, is intended to unveil 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 share 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 select 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 uncomfortable decisions at some point, but working uncomfortable and being prepared may prove to be a portfolio booster. Dedicated investors are sometimes willing to put in the added 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 enterprise’s value.  The VC1 of Mexco Energy Corporation (AMEX:MXC) is 31.  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 Mexco Energy Corporation (AMEX:MXC) is 38.

Shifting gears, we can see that Mexco Energy Corporation (AMEX:MXC) has a Q.i. Value of 50. 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 enterprise tends to be.

Watching some historical volatility numbers on shares of Mexco Energy Corporation (AMEX:MXC), we can see that the 12 month volatility is right now 67.64. The 6 month volatility is 96.32, and the 3 month is spotted at 71.67. Following volatility data can aid quantify how much the equity 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 gazing the Gross Margin score on shares of Mexco Energy Corporation (AMEX:MXC). The name presently has a score of 16. 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, Mexco Energy Corporation (AMEX:MXC) has a Piotroski F-Score of 8. The F-Score may aid unveil companies with strengthening balance sheets. The score may also be used to unveil the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the enterprise 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 suggests whether a stock is a desirable purchase.  Investors look at the Volatility 12m to think through if a enterprise has a low volatility percentage or not over the duration of a year.  The Volatility 12m of Mexco Energy Corporation (AMEX:MXC) is 67.64.  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 Mexco Energy Corporation (AMEX:MXC) is 71.67.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 96.32.

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

The Return on Invested Capital (aka ROIC) for Mexco Energy Corporation (AMEX:MXC) is 0.03. The Return on Invested Capital is a ratio that determines whether a enterprise is profitable or not. It tells investors how well a enterprise 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 enterprise’s ROIC over the duration of five years. The ROIC Quality of Mexco Energy Corporation (AMEX:MXC) is 2.11. 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 Mexco Energy Corporation (AMEX:MXC) is -0.03.

There are many nonstandard tools to think through whether a enterprise is profitable or not.  One of the most sought-after ratios is the “Return on Assets” (aka ROA).  This score suggests how profitable a enterprise is relative to its total assets.  The Return on Assets for Mexco Energy Corporation (AMEX:MXC) is 0.02.  This number is determined by dividing net income after tax by the enterprise’s total assets.  A enterprise that manages their assets well will have a higher return, while a enterprise that manages their assets poorly will have a lower return.

It may be challenging 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 uncomfortable 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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