The Piotroski F-Score of rhipe Limited (ASX:RHP) is 8. The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not.
A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.
Inexperienced investors may have the tendency to purchase stocks that have recently been on a big run higher. This may be a result of not paying close attention to the fundamentals, or simply hoping that the stock will continue the move higher. Buying after a big move to the upside may mean that the investor is essentially paying too much for the stock at those levels. Sometimes a stock will take off and get too far ahead of its underlying value which may result in the price being overvalued. Keeping a close eye on the fundamentals may be a good way for the investor to know where the stock stands at any point in time.
Ever wonder how investors predict positive share 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 rhipe Limited (ASX:RHP) is currently 1.09205. If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share 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.
The price to book ratio or market to book ratio for rhipe Limited (ASX:RHP) currently stands at 4.828566. The ratio is calculated by dividing the stock price per share by the book value per share. This ratio is used to determine how the market values the equity. A ratio of under 1 typically indicates that the shares are undervalued. A ratio over 1 indicates that the market is willing to pay more for the shares. There are often many underlying factors that come into play with the Price to Book ratio so all additional metrics should be considered as well.
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 rhipe Limited (ASX:RHP) is 7207. 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 rhipe Limited (ASX:RHP) is 46.00000. 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 C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of rhipe Limited (ASX:RHP) is 2.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
Investors hope that they won’t have to deal with stock picks that don’t pan out, but this happens quite often in the stock market. At some point, the investor may have to make the tough decision to sell a stock that previously had a lot of upward potential. Holding onto an underperforming stock can sometimes hurt the portfolio. Investors may be hesitant to let go of the stock long after it should have been sold. Tracking the underlying fundamentals can assist the investor with figuring out the proper time to buy or sell a particular stock. Mastering this aspect of investing may come with experience, but it may be highly beneficial for the long-term success of the portfolio.
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 rhipe Limited (ASX:RHP) is 3.830689. 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.
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 rhipe Limited (ASX:RHP) is 35.823300. 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 rhipe Limited (ASX:RHP) is 29.445500. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 37.038200.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of rhipe Limited (ASX:RHP) is 58. 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 rhipe Limited (ASX:RHP) is 49.
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 rhipe Limited (ASX:RHP) is 9588. The lower the ERP5 rank, the more undervalued a company is thought to be.
Investors may be drawing up a plan for the stretch run of the calendar year. With stocks riding high, the plan may involve looking at some different classes of shares. If the portfolio is full of large caps, investors may be looking for some small cap growth stocks to add to the mix. Investors may also be looking into purchasing some foreign stocks to get the portfolio as diversified as possible. Investors may also choose to select shares from various industries. Comparing stocks among peers can be a useful way to decide which ones might be ahead of the curve and poised for an upward move.
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