Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226)’s Quant Scorecard Under the Microscope With An ROA of 0.046360

In trying to think through how profitable a enterprise is per asset dollar, we can take a look at  the enterprise’s Return on Assets.  Return on assets is determined by dividing a enterprise’s net income (usually annual income) by its total assets, and is displayed as a percentage. At the time of writing, Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) has 0.046360 ROA.  The quantify is commonly used to compare the performance of businesses within the same industry, since it is very hard for someone to obfuscate the cash flow figure. Thus, the ratio is quite a reliable and comparable quantify of asset performance across an industry.

Investors are always striving to make wiser decisions when it comes to handling the markets. There are so many options available, and that can make things more complex. Beginning with a solid approach can aid ease the investor’s initial foray into the share market. Accumulating market knowledge may take a lot of time and effort. Many investors may find out the difficult way that there is no easy way to beat the markets. Many investors are teased with investment tips from friends or colleagues. It can be very tempting to take advice from someone who has a track record of beating the market. However, the old saying remains the same; past results may not indicate future results. Investors may find that doing their own due diligence can provide a huge accelerate to portfolio performance.

Valuation Scores

Checking in on some valuation rankings, Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) has a Value Composite score of 12. 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 10.

Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) has a current MF Rank of 4031. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to uncloak 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.

The price to book ratio or market to book ratio for Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) presently stands at 0.669206.  The ratio is determined by dividing the share price per share by the book value per share.  This ratio is used to think through how the market values the equity.  A ratio of under 1 typically points out that the shares are undervalued.  A ratio over 1 points out that the market is willing to pay more for the shares.  There are Often times many underlying factors that come into play with the Price to Book ratio so all added metrics should be considered as well. 

When trading the share market, investors constantly need to deal with volatility. There are many other reasons why markets may see increased volatility. Whether it is political change, economic events, or even natural disasters, there is always something brewing that has the ability to disrupt the market. When a big event happens, investors might be faced with challenges and be forced to react. Overreacting to market downturns may be common, but it may also hurt the health of the stock portfolio. When the share market gets choppy and slides, investors may be tempted to quickly pull money out. Pulling out of positions based on specific events may be the right move periodically, but investors may find that they missed out on gains that followed after a rebound. Staying disciplined and being prepared can aid the investor ride out temporary market turbulence.

Ever wonder how investors predict positive stock 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 Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is presently 1.00426.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive stock 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.

The Leverage Ratio of Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 0.037378. 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 quantify 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.

Volatility

Stock volatility is a percentage that points out 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 stage of a year.  The Volatility 12m of Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 30.663100.  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 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 stock price over 3 months.  The Volatility 3m of Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 35.662600.  The Volatility 6m is the same, except measured over the stage of six months.  The Volatility 6m is 35.838100.

Quant Scores

The Q.i. Value of Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 16.00000.  The Q.i. Value is a useful resource 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 Piotroski F-Score is a scoring system between 1-9 that determines a enterprise’s financial strength.  The score helps think through if a enterprise’s stock is valuable or not.  The Piotroski F-Score of Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 4.  A score of nine points out a high value stock, while a score of one points out 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 M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a enterprise has manipulated their earnings numbers or not. Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) has an M-Score of -999.000000.  The M-Score is based on 8 other variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets.  A score higher than -1.78 is an indicator that the enterprise might be manipulating their numbers.

The Gross Margin Score is determined by viewing at the Gross Margin and the overall stability of the enterprise over the stage 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 Kyokuto Kaihatsu Kogyo Co., Ltd. (TSE:7226) is 13.00000.  The more stable the enterprise, the lower the score.  If a enterprise is less stable over the stage of time, they will have a higher score.

As any seasoned investor knows, markets can move up or down in the blink of an eye. Investors who attempt to beat the market without creating a plan may find themselves grasping at straws down the line. Building a plan that included the right level of exposure may be other for every individual. Managing exposure and staying on top of the stock portfolio can aid investors ride out the storm when it eventually rolls in. Anybody who manages their own portfolio knows that it can be extremely crucial at times. Finding a consistent process that works when markets become volatile can be a big aid to the investor. Controlling emotions and conducting the paramount due diligence can aid the investor make the hard decisions when they crop up.

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