Assertio Therapeutics, Inc. (NasdaqGS:ASRT) has a Piotroski F-Score of 6 at the time of writing. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers.
Joseph Piotroski developed the F-Score which employs nine different variables based on the company 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 other end, a stock with a score from 0-2 would be viewed as weak.
Stock market investors may be taking some time to review portfolio allocation. Rebalancing the portfolio may be necessary for some but not for others. Rebalancing the portfolio may help provide a strategy for when the market becomes highly volatile. This process may also help keep the investor buying low and selling high. Investors may also be looking at some different stocks to explore in the next few months. This may include reviewing some foreign markets or some new sectors that were previously not included in the stock portfolio. Completing all the necessary research is typically a good way to start building a more comprehensive pool of diversified stocks.
The Leverage Ratio of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 0.574296. Leverage ratio is the total debt of a company 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 measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.
Return on Assets
There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 0.035536. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
Turning to Free Cash Flow Growth (FCF Growth), this 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 Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is -0.056774. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company 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 helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.
Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average
The Return on Invested Capital (aka ROIC) for Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 1.951776. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 1.320287. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 0.262345.
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 59.947300. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.
The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 51.056600. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 53.040900.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 1519. The lower the ERP5 rank, the more undervalued a company is thought to be.
Often times, the stock market will be affected by political, social, or economic events. The result may be end up to be positive or negative. It is wise to remember that market fluctuations can happen at any time for many various reasons. Sometimes it may not be evident of why the market moved until long after the scene has played out. Making investment decisions in a turbulent climate may be extremely tricky. At some point, investors may find themselves on the wrong end of a trade. Staying vigilant in the markets may help investors bounce back after a temporary defeat. Investors who stay the course and stay with an investment plan may be able to better handle the ups and downs of daily market movements. Repeatedly trying to find the tops or bottoms is not an easy task. Even the most seasoned investors may not be able to successfully time the market.
The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 1736. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
The Q.i. Value of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 16.00000. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 14. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated 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 calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Assertio Therapeutics, Inc. (NasdaqGS:ASRT) is 24.
Investors may be taking a closer look at holdings and trying to decide which way the stock market will lean in the second half of the year. Maybe there are some surprising winners, and the decision needs to be made to either sell for a profit or hold on for further potential gains. Maybe there are some losers that are being held onto with the hope of a rebound. Sometimes investors may get too emotionally attached to certain stocks. Keeping unbiased focus on the market may help provide the portfolio with an added boost. Nobody knows for sure what will transpire over the next few quarters. As earnings reports flow in, investors will be monitoring which companies provide the biggest surprises.
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