Is TerraVest Industries Inc. (TSX:TVK) Fairly Valued?

Here we will take a look at several key ratios for TerraVest Industries Inc. (TSX:TVK), 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 outfit’s net asset value per share to it’s current price.  This is useful in determining how the market values the enterprise compared to it’s actual worth.  The Book to Market value of TerraVest Industries Inc. at present stands at 0.430731. 

In terms of EBITDA Yield, TerraVest Industries Inc. (TSX:TVK) at present has a value of 0.109474. This value is derived by dividing EBITDA by Enterprise Value.

TerraVest Industries Inc. (TSX:TVK) right now has a current ratio of 1.86. 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 enterprise to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the enterprise may be more capable of paying back its obligations.

The Price to book ratio is the current equity price of a enterprise divided by the book value per share.  The Price to Book ratio for TerraVest Industries Inc. TSX:TVK is 2.321636.  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 enterprise’s value.  The Price to Cash Flow for TerraVest Industries Inc. (TSX:TVK) is 7.390947.  This ratio is determined by dividing the market value of a enterprise by cash from operating activities.  Additionally, the price to earnings ratio is another crowd-pleasing way for analysts and investors to figure out a enterprise’s profitability.  The price to earnings ratio for TerraVest Industries Inc. (TSX:TVK) is 14.988986. This ratio is found by taking the current equity price and dividing by EPS.

Looking at some ROIC (Return on Invested Capital) numbers, TerraVest Industries Inc. (TSX:TVK)’s ROIC is 0.161670. The ROIC 5 year average is 0.173174 and the ROIC Quality ratio is 7.743312. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a outfit 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 TerraVest Industries Inc. (TSX:TVK) is -0.447024.  Free cash flow (FCF) is the cash produced by the enterprise minus capital expenditure.  This cash is what a enterprise 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 gizmo 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 TerraVest Industries Inc. (TSX:TVK) is 0.112821.  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 considering at the Gross Margin and the overall stability of the enterprise over the timeframe 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 TerraVest Industries Inc. (TSX:TVK) is 10.00000.  The more stable the enterprise, the lower the score.  If a enterprise is less stable over the timeframe of time, they will have a higher score.

At the time of writing, TerraVest Industries Inc. (TSX:TVK) has a Piotroski F-Score of 6. The F-Score may aid unveil companies with strengthening balance sheets. The score may also be used to uncloak 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 different end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that TerraVest Industries Inc. (TSX:TVK) has a Q.i. Value of 11.00000. 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 enterprise tends to be.

Watching some historical volatility numbers on shares of TerraVest Industries Inc. (TSX:TVK), we can see that the 12 month volatility is right now 15.413700. The 6 month volatility is 25.171700, and the 3 month is spotted at 22.096400. 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 different factors that may be driving price action during the measured time stage. 

In trying to figure out the current valuation of Emerge Energy Services LP (NYSE:EMES) shares, we note that the Book to Market ratio of the shares stands at 0.777039. 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) Often times 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 crucial 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 nonstandard stocks available to trade, investors may must determine a way to make the selection process manageable. Some investors may select to start with industry homework 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.

Emerge Energy Services LP (NYSE:EMES) right now has a current ratio of 1.74. 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 enterprise to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the enterprise may be more capable of paying back its obligations.

Return on Assets

There are many nonstandard tools to figure out whether a enterprise is profitable or not. One of the most crowd-pleasing ratios is the “Return on Assets” (aka ROA). This score signals how profitable a enterprise is relative to its total assets. The Return on Assets for Emerge Energy Services LP (NYSE:EMES) is 0.076691. 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.

Emerge Energy Services LP (NYSE:EMES)’s Leverage Ratio was recently noted as 0.663996. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a enterprise is relative to the amount of debt on the balance sheet. This ratio is Often times viewed as one quantify of the financial health of a outfit.

ERP5 Rank

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 Emerge Energy Services LP (NYSE:EMES) is 3095. The lower the ERP5 rank, the more undervalued a enterprise 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 enterprise, and dividing it by the current company 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 enterprise is calculated by considering at the cash generated by operations of the enterprise. The Free Cash Flow Yield 5 Year Average of Emerge Energy Services LP (NYSE:EMES) is -0.023586.

Ever wonder how investors predict positive equity 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 Emerge Energy Services LP (NYSE:EMES) is at present 0.56781.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive equity 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 enterprise trading at a good price. The formula is determined by considering at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Emerge Energy Services LP (NYSE:EMES) is 1729. 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”.

Stock volatility is a percentage that signals 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 timeframe of a year.  The Volatility 12m of Emerge Energy Services LP (NYSE:EMES) is 68.906400.  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 Emerge Energy Services LP (NYSE:EMES) is 106.946600.  The Volatility 6m is the same, except measured over the timeframe of six months.  The Volatility 6m is 84.243100.

Yield

After a recent scan, we can see that Emerge Energy Services LP (NYSE:EMES) has a Shareholder Yield of -0.031059 and a Shareholder Yield (Mebane Faber) of -0.32043. 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 outfit is giving back to shareholders via a few nonstandard 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.

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