Quant Signal & Data Review For Eastern Goldfields Limited (ASX:EGS) Shares
May 14, 2018 Silas Weatherspoon
Taking a look at some key metrics and ratios for Eastern Goldfields Limited (ASX:EGS), we note that the ROA or Return on Assets stands at -0.819802. Return on Assets shows how many dollars of earnings result from each dollar of assets the company controls. Return on assets gives an indication of the capital intensity of the company, which will also depend on the type of industry.
In addition to ROA, there are a number of additional ratios and Quant signals available to investors in order to decipher if the shares are a good fit for their portfolio. The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Eastern Goldfields Limited (ASX:EGS) is -0.145487. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Eastern Goldfields Limited ASX:EGS is -0.64321. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s 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 EBITDA Yield for Eastern Goldfields Limited (ASX:EGS) is -0.224756.
The Earnings to Price yield of Eastern Goldfields Limited ASX:EGS is -0.294458. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for Eastern Goldfields Limited ASX:EGS is -0.232534. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for Eastern Goldfields Limited (ASX:EGS) is -0.20167.
The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Eastern Goldfields Limited ASX:EGS is -22.116121. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Eastern Goldfields Limited (ASX:EGS) is -4.570426. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Eastern Goldfields Limited (ASX:EGS) is -3.396072. This ratio is found by taking the current share price and dividing by earnings per share.
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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. The Piotroski F-Score of Eastern Goldfields Limited (ASX:EGS) is 3. 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.
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course 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 Eastern Goldfields Limited (ASX:EGS) is 67. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
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 Eastern Goldfields Limited (ASX:EGS) is 16775. The lower the ERP5 rank, the more undervalued a company is thought to be.
The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Eastern Goldfields Limited (ASX:EGS) has an M-Score of 460.365348. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Eastern Goldfields Limited (ASX:EGS) is 99. 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 Eastern Goldfields Limited (ASX:EGS) is 99.
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