What’s Behind the Numbers For Zendesk, Inc. (NYSE:ZEN), Deutsche Post AG (XTRA:DPW)?

The Current Ratio of Zendesk, Inc. (NYSE:ZEN) is 1.79.  The Current Ratio is used by investors to determine whether a company can pay short term and long term debts.  The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities.  A high current ratio indicates that the company has little trouble managing their working capital.  A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.

When the stock market starts to get volatile, investors might start getting worried about their investments. The natural response is to do something about it and take some action. Sometimes this may be necessary, but sometimes the best way to deal with volatility may be to wait it out and stay the course. It can be scary to watch the portfolio decline, and nobody wants to see their stocks taking a nosedive. Although there is no foolproof strategy to ride out market downturns, investors often agree that having a diversified stock portfolio may be the most logical defense.

Volatility & Price

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 Zendesk, Inc. (NYSE:ZEN) is 37.231600.  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 Zendesk, Inc. (NYSE:ZEN) is 61.022500.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 50.704000.

We can now take a quick look at some historical stock price index data. Zendesk, Inc. (NYSE:ZEN) presently has a 10 month price index of 1.37680. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.78320, the 24 month is 2.72747, and the 36 month is 2.67442. Narrowing in a bit closer, the 5 month price index is 1.00461, the 3 month is 0.99937, and the 1 month is currently 1.07935.

The Leverage Ratio of Zendesk, Inc. (NYSE:ZEN) is 0.521605.  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.

C-Score
Zendesk, Inc. (NYSE:ZEN) 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.

F Score, ERP5 and Magic Formula

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 Zendesk, Inc. (NYSE:ZEN) is 4.  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 Zendesk, Inc. (NYSE:ZEN) is 15795.  The lower the ERP5 rank, the more undervalued a company is thought to be. 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 Zendesk, Inc. (NYSE:ZEN) is 13219.  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”.

Shareholder Yield

The Q.i. Value of Zendesk, Inc. (NYSE:ZEN) is 59.00000.  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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Zendesk, Inc. (NYSE:ZEN) is 82.  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 Zendesk, Inc. (NYSE:ZEN) is 83.

Investors may be looking ahead to the next round of company earnings reports. Following the numbers may assist investors when attempting to do stock research. Many investors will closely follow the results to see how far off they are from the most recent analyst estimates. Analysts may be busy updating estimates before and after company earnings reports. Investors have the option of following analyst projections in order to help gauge how the sell-side is viewing company prospects. Many investors will also choose to follow analyst buy, sell, and price target recommendations.

Deutsche Post AG (XTRA:DPW) presently has a current ratio of 0.95. 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.

Technical traders may be following indicators to help spot possible entry and exit points. The two main types of indicators are lagging and leading. The leading indicator precedes stock price movements which can be used as a predictor. Lagging indicators may be used as confirmation as they follow price action. Lagging indicators may be highly useful when the market is trending, and leading indicators may be the strongest when the market is moving sideways. Indicators that stay within a certain range are referred to as oscillators. These common indicators are usually monitored for trading signals when the reading gets close to a specific level. 

Volatility & Price

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 Deutsche Post AG (XTRA:DPW) is 21.134300.  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 Deutsche Post AG (XTRA:DPW) is 24.125000.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 21.571500.

We can now take a quick look at some historical stock price index data. Deutsche Post AG (XTRA:DPW) presently has a 10 month price index of 0.70019. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.64028, the 24 month is 0.85687, and the 36 month is 1.17766. Narrowing in a bit closer, the 5 month price index is 0.79495, the 3 month is 0.85533, and the 1 month is currently 0.97531.

F Score, ERP5 and Magic Formula

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 Deutsche Post AG (XTRA:DPW) 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 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 Deutsche Post AG (XTRA:DPW) is 6153.  The lower the ERP5 rank, the more undervalued a company is thought to be. 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 Deutsche Post AG (XTRA:DPW) is 6156.  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 Leverage Ratio of Deutsche Post AG (XTRA:DPW) is 0.379922.  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.

The Q.i. Value of Deutsche Post AG (XTRA:DPW) is 24.00000.  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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Deutsche Post AG (XTRA:DPW) is 23.  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 Deutsche Post AG (XTRA:DPW) is 19.

C-Score
Deutsche Post AG (XTRA:DPW) 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.

Traders using technical analysis typically believe that all the needed information to trade a specific stock can be spotted in the charts. These traders are generally taking a shorter-term view when studying the market. Technical analysts are usually striving to spot the directional trend of a stock. Trends may be noted as upward, downward, or sideways. Many technicians will rely heavily on support and resistance levels in order to make informed decisions when buying and selling equities. These traders are also closely watching volume levels to help gauge activity. Traders are constantly searching for patterns in the charts. There are many different identifiable patterns that traders can look for. Some of these include head and shoulders, triangles, and double tops/bottoms.

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