A Deeper Look into the Quant Scorecard For: Huntington Bancshares Incorporated (NasdaqGS:HBAN), Altice USA, Inc. (NYSE:ATUS)

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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 0.013933. 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.

There are many factors that can affect the health of a certain company. Because of this, it can be extremely difficult to find one single strategy that will prove successful in the stock market. Investors are able to study all the different data, but figuring out the relevant information can be a struggle. There is plenty of company information that can easily be measured such as revenue and profits. There are also elements that aren’t as easily computed such as reputation and competitive advantage. Finding a way to gather all the information and craft a strategy that incorporates all aspects of a company may be a challenge for investors. Because there is a highly inherent human element to picking stocks, price action may not follow expectations. Human emotion can reverse course rapidly over a short period of time. Investors need to always be prepared for market uncertainty while attempting to keep emotions in check.

Taking a step further we can take a look at various other valuation metrics.  Huntington Bancshares Incorporated (NasdaqGS:HBAN) has a Price to Book ratio of 1.298139. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 6.341464, and a current Price to Earnings ratio of 8.889653. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

The Free Cash Flor 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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 0.040380. 

The Return on Invested Capital (aka ROIC) for Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 0.017792.  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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is -5.502819.  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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 0.016736.

Huntington Bancshares Incorporated (NasdaqGS:HBAN) presently has a current ratio of 0.00. 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.

In terms of value, Huntington Bancshares Incorporated (NasdaqGS:HBAN) has a Value Composite score of 47. 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 40.

Quant Ranks (ERP5, Gross Margin, F 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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 9642.  The lower the ERP5 rank, the more undervalued a company is thought to be.

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 Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 6.  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.

Investors may be interested in viewing the Gross Margin score on shares of Huntington Bancshares Incorporated (NasdaqGS:HBAN). The name currently has a score of 13.00000. 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.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Huntington Bancshares Incorporated (NasdaqGS:HBAN) for last month was 0.80189. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Huntington Bancshares Incorporated (NasdaqGS:HBAN) is 0.84264.
Price Range 52 Weeks

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Huntington Bancshares Incorporated (NasdaqGS:HBAN) over the past 52 weeks is 0.721000. The 52-week range can be found in the stock’s quote summary.

Traders often prefer to focus on stocks that are higher in volatility. Higher volatility brings more opportunity for quick profits, but it can also bring quick losses. Traders will typically try to understand recent stock activity in order to make the most out of the price action. Seeing how a certain stock has traded previously may allow traders to project which way shares will move in the near future. It is highly important for active traders to know the risk involved with trying to capitalize on shorter-term price movements. Adept traders are generally able to focus on the bigger picture and not let one or two bad trades get them down. Developing confidence to trade in the stock market may take substantial time and effort. Defining long term and short term goals to help keep the focus intact may help traders secure profits.

In trying to determine how profitable a company is per asset dollar, we can take a look at  the firm’s Return on Assets.  Return on assets is calculated by dividing a company’s net income (usually annual income) by its total assets, and is displayed as a percentage. At the time of writing, Altice USA, Inc. (NYSE:ATUS) has 0.057809 ROA.  The measure is commonly used to compare the performance of businesses within the same industry, since it is very difficult for someone to obfuscate the cash flow figure. Thus, the ratio is quite a reliable and comparable measure of asset performance across an industry.

Investors may be watching the ebb and flow of the current market environment and be wondering what the next few months have in store. They may be deciding whether now is a good time to sell off some first half winners or hold on for further gains. This can be one of the toughest decisions that an investor has to make. Just because a stock has been steadily heading higher for an extended period of time doesn’t necessarily mean that it will continue to do so. Building the confidence to make the tough portfolio decisions may take some time and a few good trades under the belt. New investors may be prone to get discouraged after a few sour trades in a row. Anyone who wants to succeed in the stock market knows that there is no substitute for research and hard work. Being able to bounce back and learn from mistakes may help the investor stay in the game and get back on the road to healthy profits.

Valuation Scores

Checking in on some valuation rankings, Altice USA, Inc. (NYSE:ATUS) has a Value Composite score of 26. 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 28.

Altice USA, Inc. (NYSE:ATUS) has a current MF Rank of 6717. 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.

The price to book ratio or market to book ratio for Altice USA, Inc. (NYSE:ATUS) currently stands at 3.441083.  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 Altice USA, Inc. (NYSE:ATUS) is currently 0.95201.  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 Leverage Ratio of Altice USA, Inc. (NYSE:ATUS) is 0.669280. 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.

Volatility

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 Altice USA, Inc. (NYSE:ATUS) is 47.207500.  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 Altice USA, Inc. (NYSE:ATUS) is 46.071200.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 40.266900.

Quant Scores

The Q.i. Value of Altice USA, Inc. (NYSE:ATUS) is 31.00000.  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 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 Altice USA, Inc. (NYSE:ATUS) is 5.  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 M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Altice USA, Inc. (NYSE:ATUS) has an M-Score of -2.451311.  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 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 Altice USA, Inc. (NYSE:ATUS) is 47.00000.  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.

Stock market investing can sometimes be a wild ride. High volatility stocks may seem to constantly going haywire. Finding a comfortable balance between stomach turning stocks and low volatility stable stocks may be the way to go. Building confidence in the stock portfolio may come with some trial and error for the individual investor. Many people will rely on others to actively manage their money, but there are always those who prefer to have a hand in every aspect of their hard earned cash. Staying on top of the markets may seem impossible sometimes. There is always something happening, and keeping the pulse on market movements may be quite a struggle. Applying the proper amount of time to dedicate for stock research might just be the difference between buying that next big winner or getting stuck with a big loser. 

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.