What Are The Quant Signals Telling Us About Majestic Wine plc (AIM:WINE)

In taking a look at some key indicators for Majestic Wine plc (AIM:WINE), we note that the current Book to Market value for the outfit is at 0.412727. 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 outfit’s book value to its market value. That is, the BTM is a comparison of a outfit’s net asset value per share to its equity price. This is a helpful resource to assist understand how the market prices a outfit relative to its actual worth. A ratio greater than one points out an undervalued outfit, while a ratio less than one means a outfit is overvalued. Value managers seek out companies with high BTMs for their portfolios.

Additional Tools

There are many alternate tools to understand whether a outfit is profitable or not.  One of the most sought-after ratios is the “Return on Assets” (aka ROA).  This score points out how profitable a outfit is relative to its total assets.  The Return on Assets for Majestic Wine plc (AIM:WINE) is 0.028369.  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.

Looking at some ROIC (Return on Invested Capital) numbers, Majestic Wine plc (AIM:WINE)’s ROIC is 0.099646. The ROIC 5 year average is 0.123931 and the ROIC Quality ratio is 1.715687. 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, Majestic Wine plc (AIM:WINE) at present has a value of 0.058027. This value is derived by dividing EBITDA by Enterprise Value.

The Current Ratio of Majestic Wine plc (AIM:WINE) is 1.20. The Current Ratio is used by investors to understand whether a outfit can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the outfit’s total current liabilities. A high current ratio points out that the outfit might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) points out that the outfit may have trouble paying their short term obligations.

The Leverage Ratio of Majestic Wine plc (AIM:WINE) is 0.093913. Leverage ratio is the total debt of a outfit 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 add up how much of a outfit’s capital comes from debt. With this ratio, investors can better estimate how well a outfit 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 understand if a outfit’s stock is valuable or not. The Piotroski F-Score of Majestic Wine plc (AIM:WINE) is 6. 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.

Checking in on some valuation rankings, Majestic Wine plc (AIM:WINE) has a Value Composite score of 39. 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 at present sitting at 37.

Volatility/C Score

Stock volatility is a percentage that points out whether a stock is a desirable purchase.  Investors look at the Volatility 12m to understand if a outfit has a low volatility percentage or not over the duration of a year.  The Volatility 12m of Majestic Wine plc (AIM:WINE) is 35.860800.  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 Majestic Wine plc (AIM:WINE) is 29.885100.  The Volatility 6m is the same, except measured over the duration of six months.  The Volatility 6m is 31.935800.

Majestic Wine plc (AIM:WINE) at present has a Montier C-score of 3.00000. 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 alternate 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 Acsm-Agam S.p.A. (BIT:ACS), 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 outfit compared to it’s actual worth.  The Book to Market value of Acsm-Agam S.p.A. at present stands at 1.070867. 

In terms of EBITDA Yield, Acsm-Agam S.p.A. (BIT:ACS) at present has a value of 0.081729. This value is derived by dividing EBITDA by Enterprise Value.

Acsm-Agam S.p.A. (BIT:ACS) right now has a current ratio of 1.03. 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 outfit to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the outfit may be more capable of paying back its obligations.

The Price to book ratio is the current equity price of a outfit divided by the book value per share.  The Price to Book ratio for Acsm-Agam S.p.A. BIT:ACS is 0.933823.  A lower price to book ratio points out that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a outfit’s value.  The Price to Cash Flow for Acsm-Agam S.p.A. (BIT:ACS) is 3.460793.  This ratio is determined by dividing the market value of a outfit by cash from operating activities.  Additionally, the price to earnings ratio is another sought-after way for analysts and investors to understand a outfit’s profitability.  The price to earnings ratio for Acsm-Agam S.p.A. (BIT:ACS) is 21.564651. This ratio is found by taking the current equity price and dividing by EPS.

Looking at some ROIC (Return on Invested Capital) numbers, Acsm-Agam S.p.A. (BIT:ACS)’s ROIC is 0.139775. The ROIC 5 year average is 0.186753 and the ROIC Quality ratio is 5.142453. 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 Acsm-Agam S.p.A. (BIT:ACS) is 0.071293.  Free cash flow (FCF) is the cash produced by the outfit minus capital expenditure.  This cash is what a outfit 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 Acsm-Agam S.p.A. (BIT:ACS) is 0.682146.  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 surveying at the Gross Margin and the overall stability of the outfit over the duration 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 Acsm-Agam S.p.A. (BIT:ACS) is 18.00000.  The more stable the outfit, the lower the score.  If a outfit is less stable over the duration of time, they will have a higher score.

At the time of writing, Acsm-Agam S.p.A. (BIT:ACS) has a Piotroski F-Score of 4. The F-Score may assist unveil 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 alternate 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 alternate end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that Acsm-Agam S.p.A. (BIT:ACS) has a Q.i. Value of 19.00000. 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 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 Acsm-Agam S.p.A. (BIT:ACS), we can see that the 12 month volatility is right now 17.118400. The 6 month volatility is 21.593600, and the 3 month is spotted at 26.898300. Following volatility data can assist add up how much the share price has fluctuated over the specified time stage. Although past volatility action may assist project future stock volatility, it may also be vastly alternate when taking into account alternate factors that may be driving price action during the measured time stage. 

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