Peeling Back the Layers For IDEXX Laboratories, Inc. (NasdaqGS:IDXX), Amarin Corporation plc (NasdaqGM:AMRN)

Here we will take a look at several key ratios for IDEXX Laboratories, Inc. (NasdaqGS:IDXX), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the firm’s net asset value per share to it’s current price.  This is helpful in determining how the market values the company compared to it’s actual worth.  The Book to Market value of IDEXX Laboratories, Inc. currently stands at -0.000523.

Investors may be looking closely at current stock market levels as we move towards the closing stages of the year. Investors might be reviewing current holdings to see if there are any changes that need to be made. Even when things are going good with equities, it may be wise to regularly check the portfolio to make sure that everything is still balanced properly. Being prepared for various market conditions may be a great help to the investor when the winds of change eventually blow in.   

In terms of EBITDA Yield, IDEXX Laboratories, Inc. (NasdaqGS:IDXX) currently has a value of 0.029974. This value is derived by dividing EBITDA by Enterprise Value.

IDEXX Laboratories, Inc. (NasdaqGS:IDXX) presently has a current ratio of 0.85. 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 is the current share price of a company divided by the book value per share.  The Price to Book ratio for IDEXX Laboratories, Inc. NasdaqGS:IDXX is -1910.532857.  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 IDEXX Laboratories, Inc. (NasdaqGS:IDXX) is 45.427707.  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 IDEXX Laboratories, Inc. (NasdaqGS:IDXX) is 48.205317. This ratio is found by taking the current share price and dividing by earnings per share.

Looking at some ROIC (Return on Invested Capital) numbers, IDEXX Laboratories, Inc. (NasdaqGS:IDXX)’s ROIC is 0.556327. The ROIC 5 year average is 0.770160 and the ROIC Quality ratio is 4.930887. 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. 

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 IDEXX Laboratories, Inc. (NasdaqGS:IDXX) is 0.078301.  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 IDEXX Laboratories, Inc. (NasdaqGS:IDXX) is 0.741509.  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.

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 IDEXX Laboratories, Inc. (NasdaqGS:IDXX) is 14.00000.  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.

At the time of writing, IDEXX Laboratories, Inc. (NasdaqGS:IDXX) has a Piotroski F-Score of 8. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that IDEXX Laboratories, Inc. (NasdaqGS:IDXX) has a Q.i. Value of 50.00000. 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.

Watching some historical volatility numbers on shares of IDEXX Laboratories, Inc. (NasdaqGS:IDXX), we can see that the 12 month volatility is presently 27.461300. The 6 month volatility is 32.547700, and the 3 month is spotted at 34.285400. 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.

Traders may already have a favorite method for applying technical analysis. Active traders are typically concerned with shorter-term price movements when trading shares. Entry and exit points tend to be way more important for traders who are looking to capitalize on stock market trends. Some traders may opt to only use technical analysis when picking stocks, while others will also incorporate company fundamentals when doing research. Of course, there is no one foolproof method for trading the markets. Many technical investors will still opt to familiarize themselves with the fundamentals before diving deeper into the technical signals. Longer-term investors might not be as concerned with day to day price fluctuations while short-term traders may not want to miss out on any significant price swings. Whatever trading strategy is applied, investors may still want to try to get a sense of the overall picture before making the trade.

In trying to determine the current valuation of Amarin Corporation plc (NasdaqGM:AMRN) shares, we note that the Book to Market ratio of the shares stands at -0.013184. It’s commonly accepted that a Book to Market ratio greater than one indicates that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is calculated by dividing the market price per share by book value per share.

With so many different stock trading strategies to choose from, new investors may become overwhelmed when presented with all the possible options. Some investors will choose to rely on the expertise of professionals, while others will try to have a go at it on their own. Investors who prefer to do their own research and make their own investment decisions are quite common these days. Of course there is no set in stone way to properly trade the stock market. Markets and economic situations are constantly changing. Staying on top of all the latest information and global developments can be challenging. Investors who are able to stay the course and put in the required time might be able to eventually give themselves a leg up in the future.

Amarin Corporation plc (NasdaqGM:AMRN) presently has a current ratio of 1.33. 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.

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 Amarin Corporation plc (NasdaqGM:AMRN) is -0.631649. 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.

Amarin Corporation plc (NasdaqGM:AMRN)’s Leverage Ratio was recently noted as 0.601921. 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.

ERP5 Rank

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 Amarin Corporation plc (NasdaqGM:AMRN) is 16773. The lower the ERP5 rank, the more undervalued a company is thought to be.

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 Amarin Corporation plc (NasdaqGM:AMRN) is -0.015646.

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 Amarin Corporation plc (NasdaqGM:AMRN) is currently 1.51397.  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.

Magic Formula

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Amarin Corporation plc (NasdaqGM:AMRN) is 14535. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

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 Amarin Corporation plc (NasdaqGM:AMRN) is 178.523100.  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 Amarin Corporation plc (NasdaqGM:AMRN) is 80.361400.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 218.905500.

Yield

After a recent scan, we can see that Amarin Corporation plc (NasdaqGM:AMRN) has a Shareholder Yield of -0.085464 and a Shareholder Yield (Mebane Faber) of -0.11127. 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.

When the stock market is doing well, there may be plenty of winners in the portfolio. Figuring out when to sell a winner can be a tricky proposition. Many investors will be quick to take profits while others may want to hold out for further gains. Selling winners too early or holding on to winners too long may have a negative impact on the trading portfolio. Finding that balance between securing profits and holding out to take higher profits in the future can be very helpful for the active investor. 

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