Ratio & Quant Signal Update on Global Water Resources, Inc. (NasdaqGM:GWRS)

In trying to figure out the current valuation of Global Water Resources, Inc. (NasdaqGM:GWRS) shares, we note that the Book to Market ratio of the shares stands at 0.138099. It’s commonly accepted that a Book to Market ratio greater than one implies 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 difficult 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 pick to start with industry home work 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.

Global Water Resources, Inc. (NasdaqGM:GWRS) currently has a current ratio of 2.30. 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.

Return on Assets

There are many nonstandard tools to figure out whether a firm is profitable or not. One of the most leading ratios is the “Return on Assets” (aka ROA). This score implies how profitable a firm is relative to its total assets. The Return on Assets for Global Water Resources, Inc. (NasdaqGM:GWRS) is 0.024953. 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.

Global Water Resources, Inc. (NasdaqGM:GWRS)’s Leverage Ratio was recently noted as 0.465311. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a firm is relative to the amount of debt on the balance sheet. This ratio is Often times viewed as one sum of the financial health of a outfit.

ERP5 Rank

The ERP5 Rank is an investment gadget that analysts use to uncover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Global Water Resources, Inc. (NasdaqGM:GWRS) is 12821. The lower the ERP5 rank, the more undervalued a firm 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 firm, and dividing it by the current firm 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 firm is calculated by surveying at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of Global Water Resources, Inc. (NasdaqGM:GWRS) is -0.005403.

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 Global Water Resources, Inc. (NasdaqGM:GWRS) is right now 1.10801.  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 firm trading at a good price. The formula is determined by surveying at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Global Water Resources, Inc. (NasdaqGM:GWRS) is 10014. A firm with a low rank is considered a good firm 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 implies whether a stock is a desirable purchase.  Investors look at the Volatility 12m to figure out if a firm has a low volatility percentage or not over the duration of a year.  The Volatility 12m of Global Water Resources, Inc. (NasdaqGM:GWRS) is 19.646600.  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 Global Water Resources, Inc. (NasdaqGM:GWRS) is 25.424700.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 23.239600.

Yield

After a recent scan, we can see that Global Water Resources, Inc. (NasdaqGM:GWRS) has a Shareholder Yield of -0.068255 and a Shareholder Yield (Mebane Faber) of 0.02520. 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.

In taking a look at some key indicators for CPI Card Group Inc. (NasdaqCM:PMTS), we note that the current Book to Market value for the outfit is at -4.475074. The Book to Market or BTM is determined as Market Value (or Stock Price)/Book Value. Investors Often times 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 gadget to aid figure out how the market prices a firm relative to its actual worth. A ratio greater than one implies 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 nonstandard tools to figure out whether a firm is profitable or not.  One of the most leading ratios is the “Return on Assets” (aka ROA).  This score implies how profitable a firm is relative to its total assets.  The Return on Assets for CPI Card Group Inc. (NasdaqCM:PMTS) is -0.177815.  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, CPI Card Group Inc. (NasdaqCM:PMTS)’s ROIC is 0.060992. The ROIC 5 year average is 0.384495 and the ROIC Quality ratio is 2.736733. 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, CPI Card Group Inc. (NasdaqCM:PMTS) right now has a value of 0.072956. This value is derived by dividing EBITDA by Enterprise Value.

The Current Ratio of CPI Card Group Inc. (NasdaqCM:PMTS) is 2.45. The Current Ratio is used by investors to figure out 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 implies that the firm might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) implies that the firm may have trouble paying their short term obligations.

The Leverage Ratio of CPI Card Group Inc. (NasdaqCM:PMTS) is 1.331412. 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 sum 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 figure out if a firm’s stock is valuable or not. The Piotroski F-Score of CPI Card Group Inc. (NasdaqCM:PMTS) is 3. A score of nine implies a high value stock, while a score of one implies 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, CPI Card Group Inc. (NasdaqCM:PMTS) has a Value Composite score of 54. 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 57.

Volatility/C Score

Stock volatility is a percentage that implies whether a stock is a desirable purchase.  Investors look at the Volatility 12m to figure out if a firm has a low volatility percentage or not over the duration of a year.  The Volatility 12m of CPI Card Group Inc. (NasdaqCM:PMTS) is 67.008400.  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 CPI Card Group Inc. (NasdaqCM:PMTS) is 104.782100.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 85.139600.

CPI Card Group Inc. (NasdaqCM:PMTS) right now has a Montier C-score of 2.00000. 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 add up 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 alternate current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

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