Weebit Nano Limited (ASX:WBT) & LexaGene Holdings Inc. (TSXV:LXG) Valuation at a Glance
Posted by
Herald Staff Writer on April 22, 2018 at 12:44 pm
Checking in on some valuation rankings, Weebit Nano Limited (ASX:WBT) has a Value Composite score of 94. 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 95.
Technicals
For technical traders, support and resistance lines play an important role. The support line generally displays the lowest price that investors will let a stock trade. This means that the stock price is unlikely to drop under this level. When support lines are breached, chartists may be watching for shares to move lower until they reach the next support level. The resistance line is the exact opposite of the support line. The resistance level is typically the highest price that investors will allow the stock to trade at. Traders will carefully watch the stock price when a resistance level is broken. The thought is that the price will continue to move towards the next level of resistance. Traders and investors may use support and resistance lines for various purposes. One popular use of these lines is to identify possible entry and exit points for trades.
In taking a look at some other notable technicals, Weebit Nano Limited (ASX:WBT)’s ROIC is -33.827243. The ROIC 5 year average is and the ROIC Quality ratio is . ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
We also note that Weebit Nano Limited (ASX:WBT) has a Shareholder Yield of -0.183584 and a Shareholder Yield (Mebane Faber) of -0.22733. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
Weebit Nano Limited (ASX:WBT) has a current MF Rank of 18897. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
We can now take a quick look at some historical stock price index data. Weebit Nano Limited (ASX:WBT) presently has a 10 month price index of 2.57143. 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 2.34783, the 24 month is 1.35000, and the 36 month is 1.35000. Narrowing in a bit closer, the 5 month price index is 1.08000, the 3 month is 0.87097, and the 1 month is currently 1.08000.
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 Weebit Nano Limited (ASX:WBT) 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.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The Value Composite score of LexaGene Holdings Inc. (TSXV:LXG) is 83. 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 LexaGene Holdings Inc. (TSXV:LXG) is 89.
Stock market players may have differing opinions on which type of research approach is best. Individual investors who prefer buy and hold strategies may be more likely to be studying the fundamentals. Traders that are constantly buying and selling shares may be more concerned with technical analysis. High frequency traders may be willing to take on more risk entering the market. For these types of traders, entry and exit points become far more important. Traders may be relying solely on charts in order to capture profits based on day to day, hour to hour, or minute by minute price fluctuations. Long term investors may not be as concerned with the daily ups and downs of the market.
Technicals at a Glance
In taking a look at some other notable technicals, LexaGene Holdings Inc. (TSXV:LXG)’s ROIC is -13.069388. The ROIC 5 year average is and the ROIC Quality ratio is . ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.
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 LexaGene Holdings Inc. (TSXV:LXG) is -2.996150. 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.
Shareholder Yield
We also note that LexaGene Holdings Inc. (TSXV:LXG) has a Shareholder Yield of -0.893946 and a Shareholder Yield (Mebane Faber) of -0.39687. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
LexaGene Holdings Inc. (TSXV:LXG) has a current MF Rank of 16928. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
Price Index
We can now take aquick look at some historical stock price index data. LexaGene Holdings Inc. (TSXV:LXG) presently has a 10 month price index of 2.00000. 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 1.44186, the 24 month is 4.96000, and the 36 month is 4.96000. Narrowing in a bit closer, the 5 month price index is 0.92537, the 3 month is 1.18095, and the 1 month is currently 1.00813.
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 LexaGene Holdings Inc. (TSXV:LXG) is 1. 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.
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