Valuation & Quant Update on Weyco Group, Inc. (NasdaqGS:WEYS)

Here we will take a look at several key ratios for Weyco Group, Inc. (NasdaqGS:WEYS), 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 Weyco Group, Inc. presently stands at 0.605764. 

In terms of EBITDA Yield, Weyco Group, Inc. (NasdaqGS:WEYS) presently has a value of 0.086971. This value is derived by dividing EBITDA by Enterprise Value.

Weyco Group, Inc. (NasdaqGS:WEYS) currently has a current ratio of 5.55. 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 stock price of a firm divided by the book value per share.  The Price to Book ratio for Weyco Group, Inc. NasdaqGS:WEYS is 1.650807.  A lower price to book ratio suggests 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 Weyco Group, Inc. (NasdaqGS:WEYS) is 17.649974.  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 leading way for analysts and investors to think through a firm’s profitability.  The price to earnings ratio for Weyco Group, Inc. (NasdaqGS:WEYS) is 17.626716. This ratio is found by taking the current stock price and dividing by EPS.

Looking at some ROIC (Return on Invested Capital) numbers, Weyco Group, Inc. (NasdaqGS:WEYS)’s ROIC is 0.142407. The ROIC 5 year average is 0.165166 and the ROIC Quality ratio is 9.169153. 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 Weyco Group, Inc. (NasdaqGS:WEYS) is -0.564958.  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 Weyco Group, Inc. (NasdaqGS:WEYS) is 0.223590.  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 Weyco Group, Inc. (NasdaqGS:WEYS) is 3.00000.  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, Weyco Group, Inc. (NasdaqGS:WEYS) has a Piotroski F-Score of 6. The F-Score may aid locate 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 alternate 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 Weyco Group, Inc. (NasdaqGS:WEYS) has a Q.i. Value of 20.00000. 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 Weyco Group, Inc. (NasdaqGS:WEYS), we can see that the 12 month volatility is currently 32.883300. The 6 month volatility is 30.079600, and the 3 month is spotted at 31.629100. Following volatility data can aid calculate how much the share price has fluctuated over the specified time stage. Although past volatility action may aid project future stock volatility, it may also be vastly alternate when taking into account nonstandard factors that may be driving price action during the measured time stage. 

In trying to think through the current valuation of Strongbridge Biopharma plc (NasdaqGS:SBBP) shares, we note that the Book to Market ratio of the shares stands at -0.022781. It’s commonly accepted that a Book to Market ratio greater than one suggests that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) frequently 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 uncomfortable 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 alternate stocks available to trade, investors may must think through a way to make the selection process manageable. Some investors may pick to start with industry diligence 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.

Strongbridge Biopharma plc (NasdaqGS:SBBP) currently has a current ratio of 3.38. 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 alternate tools to think through whether a firm is profitable or not. One of the most leading ratios is the “Return on Assets” (aka ROA). This score suggests how profitable a firm is relative to its total assets. The Return on Assets for Strongbridge Biopharma plc (NasdaqGS:SBBP) is -0.770349. 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.

Strongbridge Biopharma plc (NasdaqGS:SBBP)’s Leverage Ratio was recently noted as 0.678769. 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 frequently viewed as one calculate of the financial health of a outfit.

ERP5 Rank

The ERP5 Rank is an investment resource that analysts use to locate undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Strongbridge Biopharma plc (NasdaqGS:SBBP) is 18388. 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 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 firm is calculated by studying at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of Strongbridge Biopharma plc (NasdaqGS:SBBP) is -0.079260.

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 Strongbridge Biopharma plc (NasdaqGS:SBBP) is presently 0.76472.  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.

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 studying at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Strongbridge Biopharma plc (NasdaqGS:SBBP) is 17781. 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 suggests 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 Strongbridge Biopharma plc (NasdaqGS:SBBP) is 70.319100.  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 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 stock price over 3 months.  The Volatility 3m of Strongbridge Biopharma plc (NasdaqGS:SBBP) is 113.816700.  The Volatility 6m is the same, except measured over the timeframe of six months.  The Volatility 6m is 95.973500.

Yield

After a recent scan, we can see that Strongbridge Biopharma plc (NasdaqGS:SBBP) has a Shareholder Yield of -0.321919 and a Shareholder Yield (Mebane Faber) of -0.33764. 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 alternate 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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