Q.I. Score & Signal Review for These Stocks: Nitto Boseki Co., Ltd. (TSE:3110), Pandox AB (publ) (OM:PNDX B)

Nitto Boseki Co., Ltd. (TSE:3110) has a Q.i. Value of 22.00000. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. 

Investors may be trying to decide if it is the right time to enter the equity market. Stocks have been performing well of late, and investors may be eager to catch the next potential move higher. When looking to put money into the stock market, investors might be working hard to create a strategy and choose specific stocks to add to the portfolio. Building a strategy can be tough, but sticking to a strategy can be even tougher. Sticking to the game plan when markets are in flux can greatly improve the investor’s chances of succeeding in the market. 

Checking in on some valuation rankings, Nitto Boseki Co., Ltd. (TSE:3110) has a Value Composite score of 23. 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 company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 20.

When dealing with the volatility and unpredictability of the stock market, investors may have to learn how to deal with their emotions. There are many factors that can have a big impact on the portfolio. Maintaining discipline can be one of the most important factors. From time to time, investors will be overcome by fear during a large market selloff. On the other side, investors may become extremely excited during a widespread market move to the upside. When these situations occur, investors tend to make better decisions if they are able to keep emotions out of play and stick to the original plan. Buying and selling at the wrong time can lead to portfolio underperformance, and it may damage investor confidence in the future.

We can now take a quick look at some historical stock price index data. Nitto Boseki Co., Ltd. (TSE:3110) presently has a 10 month price index of 0.79916. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period.

Nitto Boseki Co., Ltd. (TSE:3110) has a current ERP5 Rank of 4184. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Looking at some alternate time periods, the 12 month price index is 0.92179, the 24 month is 0.79889, and the 36 month is 1.19457. Narrowing in a bit closer, the 5 month price index is 0.94014, the 3 month is 1.15039, and the 1 month is currently 1.04909.

Watching some historical volatility numbers on shares of Nitto Boseki Co., Ltd. (TSE:3110), we can see that the 12 month volatility is presently 33.470300. The 6 month volatility is 37.393900, and the 3 month is spotted at 32.666300.

Key Ratios

Turning to some key ratios, Nitto Boseki Co., Ltd. (TSE:3110)’s Leverage Ratio was recently noted as 0.170389. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.

Nitto Boseki Co., Ltd. (TSE:3110) presently has a current ratio of 2.41. 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 calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The price to book ratio or market to book ratio for Nitto Boseki Co., Ltd. (TSE:3110) currently stands at 0.919369.  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. 

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 Nitto Boseki Co., Ltd. (TSE:3110) is currently 0.85335.  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.

C Score (Montier)

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 Nitto Boseki Co., Ltd. (TSE:3110) is -1.00000. 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 are constantly trying to gain any little advantage when it comes to the stock market. Setting realistic goals and staying disciplined when trying to attain those goals can have a positive impact on an investor’s psyche and portfolio performance. Making a couple of badly timed trades can have a drastic effect on the mindset of the investor or trader. Sometimes, investors will have a few missteps that generally include buying when the market is too high, selling when the market is low, or being on the sidelines during a major charge higher. Staying disciplined can help the average investor avoid common pitfalls to help keep the focus in the right direction. When inevitable mistakes are made, investors will have the opportunity to learn from those mistakes and get back on the road to recovery.

Pandox AB (publ) (OM:PNDX B) has a Q.i. Value of 29.00000. 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 help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Investors are typically searching far and wide for any little advantage they can get in the stock market. Short-term traders using technical analysis may be looking to score quick profits by capitalizing on the fluctuations of stock prices. There are many different technical indicators that traders can choose to study. Some traders may find an indicator that works great by itself. Others may use a combination of multiple indicators to help spot trends and patterns. Many active traders will keep a close eye on a particular stock when it is nearing a new high or new low that hasn’t been touched in some time. Studying historical stock price action may lend some insight into whether or not a stock is likely to break out past the new high, or plummet further to a much lower low. Staying on top of the action may be crucial when frequently entering and exiting trades.  

Checking in on some valuation rankings, Pandox AB (publ) (OM:PNDX B) 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 company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 33.

Watching some historical volatility numbers on shares of Pandox AB (publ) (OM:PNDX B), we can see that the 12 month volatility is presently 15.568800. The 6 month volatility is 24.219900, and the 3 month is spotted at 19.326300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Pandox AB (publ) (OM:PNDX B) has a current ERP5 Rank of 8938. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

We can now take a quick look at some historical stock price index data. Pandox AB (publ) (OM:PNDX B) presently has a 10 month price index of 1.08367. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.13704, the 24 month is 1.26157, and the 36 month is 1.25626. Narrowing in a bit closer, the 5 month price index is 1.08511, the 3 month is 1.14607, and the 1 month is currently 0.99029.

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 Pandox AB (publ) (OM:PNDX B) is 0.054506. 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.

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

The Return on Invested Capital (aka ROIC) for Pandox AB (publ) (OM:PNDX B) is 0.051368. 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 Pandox AB (publ) (OM:PNDX B) is 12.589088. 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 Pandox AB (publ) (OM:PNDX B) is 0.045793.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Pandox AB (publ) (OM:PNDX B) is 0.016605.

Gross Margin score

Investors may be interested in viewing the Gross Margin score on shares of Pandox AB (publ) (OM:PNDX B). The name currently has a score of 33.00000. 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.

Smart investors are often very knowledgeable about the markets. Many successful investors have become highly adept at knowing when to buy and when to sell. They have also managed to control risk and secure sustained profits. This doesn’t just happen overnight. Investors often spend many years of trial and error before being able to put together the puzzle. Top investors are also able to make better investing decisions with the information at hand. With vast amounts of data readily available for everyone, it becomes more about interpreting the data rather than just receiving it. Knowing how to block out the noise and find information that is useful, can be a highly coveted skill. Turning available information into a winning portfolio is where the good investor can become a great investor.