Peeling Back the Layers For Paragon Care Limited (ASX:PGC)

In taking a look at some key indicators for Paragon Care Limited (ASX:PGC), we note that the current Book to Market value for the outfit is at 0.738381. The Book to Market or BTM is determined as Market Value (or Stock Price)/Book Value. Investors sometimes look for shares with high Book to Market value as this could indicate that the equity is priced below market value and underpriced.

A ratio of a publicly-traded firm’s book value to its market value. That is, the BTM is a comparison of a firm’s net asset value per share to its equity price. This is a helpful resource to aid think through how the market prices a firm relative to its actual worth. A ratio greater than one reveals an undervalued firm, while a ratio less than one means a firm is overvalued. Value managers seek out companies with high BTMs for their portfolios.

Additional Tools

There are many other tools to think through whether a firm is profitable or not.  One of the most sought-after ratios is the “Return on Assets” (aka ROA).  This score reveals how profitable a firm is relative to its total assets.  The Return on Assets for Paragon Care Limited (ASX:PGC) is 0.065949.  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.

Looking at some ROIC (Return on Invested Capital) numbers, Paragon Care Limited (ASX:PGC)’s ROIC is 0.133493. The ROIC 5 year average is 0.278379 and the ROIC Quality ratio is 2.634407. 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. 

In terms of EBITDA Yield, Paragon Care Limited (ASX:PGC) presently has a value of 0.038259. This value is derived by dividing EBITDA by Enterprise Value.

The Current Ratio of Paragon Care Limited (ASX:PGC) is 1.88. The Current Ratio is used by investors to think through whether a firm can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the firm’s total current liabilities. A high current ratio reveals that the firm might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) reveals that the firm may have trouble paying their short term obligations.

The Leverage Ratio of Paragon Care Limited (ASX:PGC) is 0.406424. Leverage ratio is the total debt of a firm 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 firm’s capital comes from debt. With this ratio, investors can better estimate how well a firm will be able to pay their long and short term financial obligations.

Piotroski F Score

The Piotroski F-Score is a scoring system between 1-9 that determines a outfit’s financial strength. The score helps think through if a firm’s stock is valuable or not. The Piotroski F-Score of Paragon Care Limited (ASX:PGC) is 5. A score of nine reveals a high value stock, while a score of one reveals 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.

Checking in on some valuation rankings, Paragon Care Limited (ASX:PGC) has a Value Composite score of 45. 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 presently sitting at 57.

Volatility/C Score

Stock volatility is a percentage that reveals whether a stock is a desirable purchase.  Investors look at the Volatility 12m to think through if a firm has a low volatility percentage or not over the timeframe of a year.  The Volatility 12m of Paragon Care Limited (ASX:PGC) is 19.332200.  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 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 equity price over 3 months.  The Volatility 3m of Paragon Care Limited (ASX:PGC) is 29.459800.  The Volatility 6m is the same, except measured over the timeframe of six months.  The Volatility 6m is 27.508700.

Paragon Care Limited (ASX:PGC) presently has a Montier C-score of 5.00000. 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 sum 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 nonstandard current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

Here we will take a look at several key ratios for Savara Inc. (NasdaqGS:SVRA), 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 firm compared to it’s actual worth.  The Book to Market value of Savara Inc. presently stands at 0.216402. 

In terms of EBITDA Yield, Savara Inc. (NasdaqGS:SVRA) presently has a value of -0.112672. This value is derived by dividing EBITDA by Enterprise Value.

Savara Inc. (NasdaqGS:SVRA) right now has a current ratio of 10.30. 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 firm to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the firm may be more capable of paying back its obligations.

The Price to book ratio is the current equity price of a firm divided by the book value per share.  The Price to Book ratio for Savara Inc. NasdaqGS:SVRA is 4.621033.  A lower price to book ratio reveals that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value.  The Price to Cash Flow for Savara Inc. (NasdaqGS:SVRA) is -10.127481.  This ratio is determined by dividing the market value of a firm by cash from operating activities.  Additionally, the price to earnings ratio is another sought-after way for analysts and investors to think through a firm’s profitability.  The price to earnings ratio for Savara Inc. (NasdaqGS:SVRA) is -7.383814. This ratio is found by taking the current equity price and dividing by EPS.

Looking at some ROIC (Return on Invested Capital) numbers, Savara Inc. (NasdaqGS:SVRA)’s ROIC is -1.815723. The ROIC 5 year average is and the ROIC Quality ratio is . 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 Savara Inc. (NasdaqGS:SVRA) is .  Free cash flow (FCF) is the cash produced by the firm minus capital expenditure.  This cash is what a firm 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 resource 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 Savara Inc. (NasdaqGS:SVRA) is .  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 studying at the Gross Margin and the overall stability of the firm 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 Savara Inc. (NasdaqGS:SVRA) is 50.00000.  The more stable the firm, the lower the score.  If a firm is less stable over the timeframe of time, they will have a higher score.

At the time of writing, Savara Inc. (NasdaqGS:SVRA) has a Piotroski F-Score of 3. The F-Score may aid uncloak 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 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 nonstandard end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that Savara Inc. (NasdaqGS:SVRA) has a Q.i. Value of 79.00000. 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 firm tends to be.

Watching some historical volatility numbers on shares of Savara Inc. (NasdaqGS:SVRA), we can see that the 12 month volatility is right now 51.032300. The 6 month volatility is 59.420800, and the 3 month is spotted at 44.362000. Following volatility data can aid quantify how much the share price has fluctuated over the specified time season. Although past volatility action may aid project future stock volatility, it may also be vastly other when taking into account nonstandard factors that may be driving price action during the measured time season. 

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