Investors Are Taking a Second Look at These Stocks: Mineral Commodities Ltd (ASX:MRC), Devoteam SA (ENXTPA:DVT)

Mineral Commodities Ltd (ASX:MRC) has a current MF Rank of 1437. 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 heady moves in the share market. Taking stock of personal strengths and weaknesses can assist 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 assist the beginner 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 other angle than a shorter-term trader. Investors who plan to be in the market for a long timeframe of time may not be as concerned about the day to day fluctuations as short-term traders. 

Checking in on some valuation rankings, Mineral Commodities Ltd (ASX:MRC) has a Value Composite score of 10. 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 right now sitting at 6.

Mineral Commodities Ltd (ASX:MRC) has a Price to Book ratio of 1.26. 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 different ratios, the firm has a Price to Cash Flow ratio of 3.22, and a current Price to Earnings ratio of 9.26. 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 Mineral Commodities Ltd (ASX:MRC) 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 assist 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 Mineral Commodities Ltd (ASX:MRC), we can see that the 12 month volatility is at present 72.86. The 6 month volatility is 76.53, and the 3 month is spotted at 92.73. Following volatility data can assist calculate how much the share price has fluctuated over the specified time timeframe. Although past volatility action may assist project future stock volatility, it may also be vastly other when taking into account different factors that may be driving price action during the measured time timeframe. 

At the time of writing, Mineral Commodities Ltd (ASX:MRC) has a Piotroski F-Score of 5. The F-Score may assist 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 other 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 different end, a stock with a score from 0-2 would be viewed as weak.

Investors may be interested in studying the Gross Margin score on shares of Mineral Commodities Ltd (ASX:MRC). The name right now 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.

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 Mineral Commodities Ltd (ASX:MRC) is 0.06.  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 understand the effectiveness of a firm’s distributions is by surveying at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Mineral Commodities Ltd ASX:MRC is 0.11.  This number is determined by surveying at the calculate of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick glimpse at some historical share price index data. Mineral Commodities Ltd (ASX:MRC) at present has a 10 month price index of 1.30. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one shows an accelerate in stock price over the timeframe. A ratio lower than one suggests that the price has decreased over that time timeframe. Looking at some other time periods, the 12 month price index is 1.45, the 24 month is 2.05, and the 36 month is 2.17. Narrowing in a bit closer, the 5 month price index is 0.77, the 3 month is 0.95, and the 1 month is right now 1.17.

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 Often times times a way to add up the current value of a firm and try to gauge the value into the future. Zooming in on the imperative statistics of a firm can assist provide a glimpse of the firm’s overall health.

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Devoteam SA (ENXTPA:DVT) has a current Magic Formula rank of 2009. 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.

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 exposure 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 Often times willing to put in the extraordinary hours in order to make sure no stone is left unturned.

The Value Composite One (VC1) is a method that investors use to understand a firm’s value.  The VC1 of Devoteam SA (ENXTPA:DVT) is 48.  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 Devoteam SA (ENXTPA:DVT) is 52.

Shifting gears, we can see that Devoteam SA (ENXTPA:DVT) has a Q.i. Value of 19. 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 assist 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 Devoteam SA (ENXTPA:DVT), we can see that the 12 month volatility is at present 30.94. The 6 month volatility is 38.51, and the 3 month is spotted at 47.88. Following volatility data can assist calculate how much the share price has fluctuated over the specified time timeframe. Although past volatility action may assist project future stock volatility, it may also be vastly other when taking into account different factors that may be driving price action during the measured time timeframe. 

Investors may be interested in studying the Gross Margin score on shares of Devoteam SA (ENXTPA:DVT). The name right now has a score of 9. 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, Devoteam SA (ENXTPA:DVT) has a Piotroski F-Score of 6. The F-Score may assist 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 other 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 different end, a stock with a score from 0-2 would be viewed as weak.

Volatility

Stock volatility is a percentage that shows whether a stock is a desirable purchase.  Investors look at the Volatility 12m to understand if a firm has a low volatility percentage or not over the period of a year.  The Volatility 12m of Devoteam SA (ENXTPA:DVT) is 30.94.  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 Devoteam SA (ENXTPA:DVT) is 47.88.  The Volatility 6m is the same, except measured over the period of six months.  The Volatility 6m is 38.51.

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

The Return on Invested Capital (aka ROIC) for Devoteam SA (ENXTPA:DVT) is 0.49. 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 period of five years. The ROIC Quality of Devoteam SA (ENXTPA:DVT) is 4.60. 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 Devoteam SA (ENXTPA:DVT) is 0.39.

There are many other tools to understand whether a firm is profitable or not.  One of the most leading ratios is the “Return on Assets” (aka ROA).  This score shows how profitable a firm is relative to its total assets.  The Return on Assets for Devoteam SA (ENXTPA:DVT) is 0.07.  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 uncomfortable 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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