Nexstar Media Group, Inc. (NasdaqGS:NXST) and Canopy Growth Corporation (TSX:WEED)’s Quant Signals Underline What’s Behind the Firms’ Share Movement

Nexstar Media Group, Inc. (NasdaqGS:NXST) currently has a Value Composite score of 24.  The Value Composite One (VC1) is a method that investors use to determine a company’s value. 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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is 20.

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 Nexstar Media Group, Inc. NasdaqGS:NXST is 2.280493. 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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is 6.874940. 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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is 6.409476. This ratio is found by taking the current share price and dividing by earnings per share.

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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is currently 1.04892. 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.

EBITDA 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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is 0.118893.

The Earnings to Price yield of Nexstar Media Group, Inc. NasdaqGS:NXST is 0.156019. 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 Nexstar Media Group, Inc. NasdaqGS:NXST is 0.087439. 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 Nexstar Media Group, Inc. (NasdaqGS:NXST) is 0.032942.

Nexstar Media Group, Inc. (NasdaqGS:NXST) has a current ERP5 Rank of 2178. 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.

GM Score
The Gross Margin Score is calculated by watching the Gross Margin and the overall stability of the company over the course of the previous eight years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Nexstar Media Group, Inc. (NasdaqGS:NXST) is 32.00000. 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.

Watching some historical volatility numbers on shares of Nexstar Media Group, Inc. (NasdaqGS:NXST), we can see that the 12 month volatility is presently 33.146600. The 6 month volatility is 32.626800, and the 3 month is spotted at 37.506200. 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.

The ROIC Quality of Canopy Growth Corporation (TSX:WEED) is 1.928911.  This number 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 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.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells stock watchers how well a firm is turning their capital into profits.  

Canopy Growth Corporation (TSX:WEED) currently has a Montier C-score of 4.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

After a recent scan, we can see that Canopy Growth Corporation (TSX:WEED) has a Shareholder Yield of -0.345380 and a Shareholder Yield (Mebane Faber) of -0.85836. 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.

Canopy Growth Corporation (TSX:WEED) has a current MF Rank of 13592. 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 M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Canopy Growth Corporation (TSX:WEED) has an M-Score of -1.389873. 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.

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 Canopy Growth Corporation (TSX:WEED) over the past 52 weeks is 0.566000. The 52-week range can be found in the stock’s quote summary.

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 Canopy Growth Corporation (TSX:WEED) 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.

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 Canopy Growth Corporation (TSX:WEED) is -0.597698. 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.

Free Cash Flow Growth (FCF Growth) 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 Canopy Growth Corporation (TSX:WEED) is -11.390606. 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. The FCF Score of Canopy Growth Corporation (TSX:WEED) is -6.981516. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

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