Stock Buzz: DoubleUGames Co., Ltd. (KOSE:A192080) and Everi Holdings Inc. (NYSE:EVRI) Quant Signals Under Review

In reviewing some key ratios and quant data for DoubleUGames Co., Ltd. (KOSE:A192080), we note that the mother of all ratios (Return on Equity) stands at 0.169340 for the firm.  ROE reveals what percentage of each investment dollar is returned as a profit.  Used in conjunction with a variety of other ratios, this indicator is a very important tool for investors in determining the effectiveness of a company to generate returns for investors.

Investors may be taking a look at certain business aspects when attempting to research a stock. Investors often look to see if the stock’s specific industry is on the rise. There may be a greater chance of success when investing in an industry that is rapidly growing. Investors may then want to see how the company stacks up within the industry. Many investors will look for stocks that are proven industry leaders. Industry leaders have the ability to influence pricing and not necessarily be susceptible to what other companies are doing around them. Investors may also be taking note of how a company invests in research and development. Companies that are focused on the future may have a competitive advantage over those who are too focused on the near-term.

Further, we can look at some other ratios and financial indicators in order to get an idea of the company’s valuation.  DoubleUGames Co., Ltd. (KOSE:A192080) presently has a current ratio of 0.65. 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 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 DoubleUGames Co., Ltd. (KOSE:A192080) is . 

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 DoubleUGames Co., Ltd. (KOSE:A192080) is 0.088009.  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.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. DoubleUGames Co., Ltd. (KOSE:A192080) has an M-Score of -2.671370.  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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of DoubleUGames Co., Ltd. (KOSE:A192080) is 26.  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 DoubleUGames Co., Ltd. (KOSE:A192080) is 24.

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 DoubleUGames Co., Ltd. (KOSE:A192080) is 802.  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”.

The Earnings to Price yield of DoubleUGames Co., Ltd. KOSE:A192080 is 0.086747.  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 DoubleUGames Co., Ltd. KOSE:A192080 is 0.094568.  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 DoubleUGames Co., Ltd. (KOSE:A192080) is .

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of DoubleUGames Co., Ltd. (KOSE:A192080) for last month was 0.96308. 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 DoubleUGames Co., Ltd. (KOSE:A192080) is 0.83356.

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 DoubleUGames Co., Ltd. (KOSE:A192080) over the past 52 weeks is 0.816000. The 52-week range can be found in the stock’s quote summary.

Figuring out when to sell a stock can be just as important as deciding what stocks to buy at the outset. Some investors may refuse to sell based on various factors. Investors may have become stubborn, too emotionally attached, or set too high of an expectation for a stock. Holding on to a stock for way too long in order to squeeze every last drop of profit out of a price move may leave the investor desperately searching for answers in the future. Investors may have different checklists for when it is time to sell a stock. Of course this depends largely on the individual and how much is at risk. Often times, investors will make a move to sell when the fundamentals drastically change, the dividend is cut, or a previous set target price has been hit. Getting out of a position at the right time is obviously not easy, but it may become a bit easier with time and research.

Today we are spotlighting shares of Everi Holdings Inc. (NYSE:EVRI) and looking at how the firm stacks up in terms of valuation by the numbers.  One of the most important ratios to look at when weighing an investment decision is the Return on Equity of the company.  At the time of writing Everi Holdings Inc. has an ROE of -0.113467. With ROE, Investors can see if they’re getting a good return on their money, while a company can evaluate how efficiently they’re utilizing shareholder’s equity.

For any technician, the trend is a major aspect of stock trading. The trend is the dominant movement in direction of a stock’s price. When discussing the trend in terms of stock price, the assumption is that the trend is expected to continue over a certain period of time. Obviously there is no guarantee that a defined trend will continue, but technical analysts will scour the charts looking for signs of a developed trend to help make the best possible decisions. Seasoned chart watchers are typically able to spot if a trend is up, down, or sideways. Learning how to trade the trend is another part of the process that traders may spend years perfecting.  

Drilling down into some additional metrics, we note that Everi Holdings Inc. (NYSE:EVRI) has a Price to Book ratio of -6.502802. 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 2.406239, and a current Price to Earnings ratio of 57.310025. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

After a recent scan, we can see that Everi Holdings Inc. (NYSE:EVRI) has a Shareholder Yield of -0.041964 and a Shareholder Yield (Mebane Faber) of -0.01518. 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.

The Return on Invested Capital (aka ROIC) for Everi Holdings Inc. (NYSE:EVRI) is 0.577123.  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 Everi Holdings Inc. (NYSE:EVRI) is 2.434524.  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 Everi Holdings Inc. (NYSE:EVRI) is 0.374099.

The Earnings to Price yield of Everi Holdings Inc. NYSE:EVRI is 0.017449.  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 Everi Holdings Inc. NYSE:EVRI is 0.045856.  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 Everi Holdings Inc. (NYSE:EVRI) is 0.026528.

Everi Holdings Inc. (NYSE:EVRI) currently has a Montier C-score of 2.00000. 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.

At the time of writing, Everi Holdings Inc. (NYSE:EVRI) has a Piotroski F-Score of 7. 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 Everi Holdings Inc. (NYSE:EVRI) has a Q.i. Value of 23.00000. 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.

Volatility

Watching some historical volatility numbers on shares of Everi Holdings Inc. (NYSE:EVRI), we can see that the 12 month volatility is presently 51.097200. The 6 month volatility is 49.364700, and the 3 month is spotted at 38.592400. 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.

Investors are typically trying to find solid stocks to add to the portfolio. When it comes to stock picking, there is no magic formula. There are various techniques that may provide better outcomes than others, but it’s how these techniques are put together and applied that can make all the difference. One of the keys to successful investing is the proper use of information. Everyone can see the vast amount of data that is available on publically traded companies. Being able to interpret the data could end up being the most important factor when it comes to successfully selecting stocks to buy. Taking the time to investigate a particular stock that looks attractive can be a smart move. Investors may be better served to not just jump on the hot stock of the day, but employ analysis that may help uncover some buried information. Good stocks are indeed out there, it may just take some time to figure out which ones they are.

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