Stock Focus: Magic Formula Review For Lingo Media Corporation (TSXV:LM), Magellan Midstream Partners, L.P. (NYSE:MMP)

Lingo Media Corporation (TSXV:LM) has a current MF Rank of 19714. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to uncover 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 smooth moves in the equity 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 equity market from a completely other angle than a shorter-term trader. Investors who plan to be in the market for a long season of time may not be as concerned about the day to day fluctuations as short-term traders. 

Checking in on some valuation rankings, Lingo Media Corporation (TSXV:LM) has a Value Composite score of 96. 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 outfit with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued outfit. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is presently sitting at 93.

Lingo Media Corporation (TSXV:LM) has a Price to Book ratio of 6.01. This ratio is determined by dividing the current equity 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 outfit has a Price to Cash Flow ratio of -1.28, and a current Price to Earnings ratio of -0.41. The P/E ratio is one of the most common ratios used for figuring out whether a outfit is overvalued or undervalued.

Shifting gears, we can see that Lingo Media Corporation (TSXV:LM) 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 outfit tends to be.

Watching some historical volatility numbers on shares of Lingo Media Corporation (TSXV:LM), we can see that the 12 month volatility is right now 76.14. The 6 month volatility is 213.87, and the 3 month is spotted at 232.41. Following volatility data can assist quantify how much the share price has fluctuated over the specified time season. 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 season. 

At the time of writing, Lingo Media Corporation (TSXV:LM) has a Piotroski F-Score of 2. The F-Score may assist uncover companies with strengthening balance sheets. The score may also be used to uncover the weak performers. Joseph Piotroski developed the F-Score which employs nine other variables based on the outfit 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 looking the Gross Margin score on shares of Lingo Media Corporation (TSXV:LM). The name presently has a score of 44. 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 outfit through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Lingo Media Corporation (TSXV:LM) is 0.00.  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 boost the shareholder value, too.  Another way to think through the effectiveness of a outfit’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Lingo Media Corporation TSXV:LM is -0.08.  This number is determined by gazing at the quantify of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick gander at some historical share price index data. Lingo Media Corporation (TSXV:LM) right now has a 10 month price index of 0.47. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one signals an boost in equity price over the season. A ratio lower than one signals that the price has decreased over that time season. Looking at some nonstandard time periods, the 12 month price index is 0.44, the 24 month is 0.30, and the 36 month is 0.08. Narrowing in a bit closer, the 5 month price index is 0.74, the 3 month is 0.67, and the 1 month is presently 0.70.

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 outfit. When focusing in on a specific outfit, investors will look at outfit management, financial information, business prospects, and industry competition. The goal of digging into the numbers is Often times times a way to sum the current value of a outfit and try to gauge the value into the future. Zooming in on the paramount statistics of a outfit can assist provide a glimpse of the outfit’s overall health.

Magellan Midstream Partners, L.P. (NYSE:MMP) has a current Magic Formula rank of 6659. The formula which was developed by hedge fund manager Joel Greenblatt, is intended to uncover 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.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Some equity 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 single out to go all in, while others may look to reduce uncertainty with stable long-term staple companies. Active equity investors may be forced to make challenging decisions at some point, but working challenging 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 think through a outfit’s value.  The VC1 of Magellan Midstream Partners, L.P. (NYSE:MMP) is 50.  A outfit with a value of 0 is thought to be an undervalued outfit, while a outfit with a value of 100 is considered an overvalued outfit.  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 Magellan Midstream Partners, L.P. (NYSE:MMP) is 40.

Shifting gears, we can see that Magellan Midstream Partners, L.P. (NYSE:MMP) has a Q.i. Value of 37. 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 outfit tends to be.

Watching some historical volatility numbers on shares of Magellan Midstream Partners, L.P. (NYSE:MMP), we can see that the 12 month volatility is right now 19.40. The 6 month volatility is 16.74, and the 3 month is spotted at 17.56. Following volatility data can assist quantify how much the share price has fluctuated over the specified time season. 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 season. 

Investors may be interested in looking the Gross Margin score on shares of Magellan Midstream Partners, L.P. (NYSE:MMP). The name presently has a score of 14. 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, Magellan Midstream Partners, L.P. (NYSE:MMP) has a Piotroski F-Score of 6. The F-Score may assist uncover companies with strengthening balance sheets. The score may also be used to uncover the weak performers. Joseph Piotroski developed the F-Score which employs nine other variables based on the outfit 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 signals whether a stock is a desirable purchase.  Investors look at the Volatility 12m to think through if a outfit has a low volatility percentage or not over the period of a year.  The Volatility 12m of Magellan Midstream Partners, L.P. (NYSE:MMP) is 19.40.  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 outfit 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 Magellan Midstream Partners, L.P. (NYSE:MMP) is 17.56.  The Volatility 6m is the same, except measured over the period of six months.  The Volatility 6m is 16.74.

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

The Return on Invested Capital (aka ROIC) for Magellan Midstream Partners, L.P. (NYSE:MMP) is 0.14. The Return on Invested Capital is a ratio that determines whether a outfit is profitable or not. It tells investors how well a outfit 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 resource in evaluating the quality of a outfit’s ROIC over the period of five years. The ROIC Quality of Magellan Midstream Partners, L.P. (NYSE:MMP) is 10.69. 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 Magellan Midstream Partners, L.P. (NYSE:MMP) is 0.16.

There are many other tools to think through whether a outfit is profitable or not.  One of the most crowd-pleasing ratios is the “Return on Assets” (aka ROA).  This score signals how profitable a outfit is relative to its total assets.  The Return on Assets for Magellan Midstream Partners, L.P. (NYSE:MMP) is 0.18.  This number is determined by dividing net income after tax by the outfit’s total assets.  A outfit that manages their assets well will have a higher return, while a outfit 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 challenging 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.

Leave a Comment