Realord Group Holdings Limited (SEHK:1196) and Air Canada (TSX:AC)’s Value Composition Scores & Quant Ratios in Focus

Watching some historical volatility numbers on shares of Realord Group Holdings Limited (SEHK:1196), we can see that the 12 month volatility is presently 26.303900. The 6 month volatility is 20.556400, and the 3 month is spotted at 20.466300. 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 might also be keeping an eye on the Piotroski Score or F-Score. The score is named after its developer Joseph Piotroski who created a ranking scale from 0-9 to help determine the financial strength of a company. Realord Group Holdings Limited (SEHK:1196) currently has a Piotroski Score of 4. To arrive at this score, Piotroski gave one point for every piece of criteria met out of the nine considered.

Investors may also be watching company stock volatility data. Realord Group Holdings Limited (SEHK:1196)’s 12 month volatility is presently 26.303900. The 6 month volatility is 20.556400, and the 3 month is noted at 20.466300. Stock price volatility may be used to identify changes in market trends. When markets become very volatile, this may point to a change in investor sentiment. Watching volatility in combination with other technical indicators may help investors discover important trading information.

Diving in a bit further, we can take a quick look at the Q.i. (Liquidity) Value. Realord Group Holdings Limited (SEHK:1196) has a present Q.i. value of 61.00000. This value ranks stocks using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help spot companies that are undervalued. A larger value would represent low turnover and a higher chance of shares being mispriced. A lower value may indicate larger traded value meaning more sell-side analysts may cover the company leading to a smaller chance shares are priced improperly.

Investors keeping an eye on shares of Realord Group Holdings Limited (SEHK:1196) may be examining the company’s FCF or Free Cash Flow as well. FCF is a measure of the financial performance of a company. FCF is calculated by subtracting capital expenditures from operating cash flow. Currently, Realord Group Holdings Limited has an FCF score of 0.779212. The FCF score is an indicator that is calculated by combining free cash flow stability with free cash flow growth. Typically, a higher FCF score value would indicate high free cash flow growth. The company currently has an FCF quality score of -1.952143. The free quality score helps estimate free cash flow stability. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. With this score, it is generally considered that the lower the ratio, the better.

Value
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Realord Group Holdings Limited (SEHK:1196) is 70. 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 Realord Group Holdings Limited (SEHK:1196) is 76.

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.

In trying to calculate the current valuation of Air Canada (TSX:AC) shares, we note that the Book to Market ratio of the stock stands at 0.627923. 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.  

We can also take a look at some stock volatility data on shares of Air Canada (TSX:AC). The 12 month volatility is currently 32.681400. The 6 month volatility is noted at 36.116400, and the 3 month is recorded at 39.530100. When following the volatility of a stock, investors may be challenged with trying to decipher the correct combination of risk-reward to help maximize returns. As with any strategy, it is important to carefully consider risk and other market factors that might be in play when examining stock volatility levels.

Investors may be looking at the Piotroski F-Score when doing value analysis. The F-Score was developed to help find company stocks that have solid fundamentals, and to separate out weaker companies. Piotroski’s F-Score uses nine tests based on company financial statements. Air Canada (TSX:AC) currently has a Piotroski F-Score of 6. One point is given for piece of criteria that is met. Typically, a stock with a high score of 8 or 9 would be seen as strong, and a stock scoring on the lower end between 0 and 2 would be viewed as weaker.

Shifting gears, Air Canada (TSX:AC) has an FCF quality score of 0.148934. The free quality score helps estimate the stability of free cash flow. FCF quality is calculated as the 12 ltm cash flow per share over the average of the cash flow numbers. When reviewing this score, it is generally thought that the lower the ratio, the better. Presently, Air Canada has an FCF score of -0.390511. The FCF score is determined by merging free cash flow stability with free cash flow growth. In general, a higher FCF score value would represent high free cash flow growth. Monitoring FCF information may help provide some excellent insight on the financial health of a specific company.

Investors might want to take a look at shares of Air Canada (TSX:AC) from a different angle. Let’s take a peek at the current Q.i. (Liquidity) Value. Air Canada has a Q.i. value of 18.00000. This value ranks stocks using EBITDA yield, FCF yield, earnings yield and liquidity ratios. The Q.i. value may help identify companies that are undervalued. A larger value would indicate low turnover and a higher chance of shares being priced incorrectly. A lower value may show larger traded value meaning more sell-side analysts may track the company leading to a lesser chance that shares are priced improperly.

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 Air Canada (TSX:AC) over the past 52 weeks is 0.923000. 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 Air Canada (TSX:AC) 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.

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 Air Canada is 6237. The lower the ERP5 rank, the more undervalued a company is thought to be.

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