Dialog Semiconductor Plc (XTRA:DLG), Husky Energy Inc. (TSX:HSE) Earnings According to Quant

Dialog Semiconductor Plc (XTRA:DLG) currently has a Montier C-score of 5.00000. This indicator was developed by James Montier in an attempt to …

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 Dialog Semiconductor Plc (XTRA:DLG) stands at 0.130592. 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 Dialog Semiconductor Plc (XTRA:DLG) is 0.062123. Further, the Earnings to Price yield of Dialog Semiconductor Plc XTRA:DLG is 0.089760. 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.

As most investors know, the stock market can be a highly volatile place. Investors often have to figure out a way that they can personally stay on track so they don’t veer of course. Sticking to a well-researched trading strategy may work for some people. Others may jump into the market head first without too much planning and hope to gain profits by learning as they go. The stock market learning curve may be vastly different for individuals depending on their circumstances and backgrounds. What’s good for one person may not be good for another. When the markets are rising steadily and running along smoothly, investors may feel like they can do no wrong when it comes to picking stocks. People who become overconfident in their abilities may be faced with a harsh reality when the market shifts and momentum builds to the downside. Investors who are prepared for any economic situation might be able to much better ride out the storm when the time comes.



Quant Signals – Value Composite, C- Score, MF Rank, M-Score, ERP5

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Dialog Semiconductor Plc (XTRA:DLG) is 27. 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 Dialog Semiconductor Plc (XTRA:DLG) is 20.

Dialog Semiconductor Plc (XTRA:DLG) currently has a Montier C-score of 5.00000. This indicator was developed by James Montier in an attempt to identify firms that were altering financial numbers 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 of something amiss. 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.

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 Dialog Semiconductor Plc (XTRA:DLG) is 580. 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”.

Dialog Semiconductor Plc (XTRA:DLG) has an M-score Beneish of -3.252143. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

The last signal we’ll look at is the 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 Dialog Semiconductor Plc (XTRA:DLG) is 1062. The lower the ERP5 rank, the more undervalued a company is thought to be.

Volatility/PI

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 Dialog Semiconductor Plc (XTRA:DLG) is 46.010400. 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 Dialog Semiconductor Plc (XTRA:DLG) is 40.423400. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 35.464900.

We can now take a quick look at some historical stock price index data. Dialog Semiconductor Plc (XTRA:DLG) presently has a 10 month price index of 2.35600. 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 2.25301, the 24 month is 1.08173, and the 36 month is 1.33129. Narrowing in a bit closer, the 5 month price index is 1.52930, the 3 month is 1.26823, and the 1 month is currently 1.16206.

ROIC

The Return on Invested Capital (aka ROIC) for Dialog Semiconductor Plc (XTRA:DLG) is 0.549513. 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 Dialog Semiconductor Plc (XTRA:DLG) is 3.925687. 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 Dialog Semiconductor Plc (XTRA:DLG) is 0.608183.

Some investors may succeed spectacularly in the market while others fail. There is an emotional component to trading and investing which can pose a big obstacle to trading success. Investors frequently try to optimize every decision for success, but sometimes things just don’t work out as planned. Consistently beating the market may involve heavy amounts of homework, and a necessary rebalancing of the portfolio. In fast paced markets, indecision can have a drastic impact. Investors may have all the bases covered but fail to make a trade based only on the fear of being wrong. Individual investors may need to conquer self-doubt in order to reach optimal performance when picking stocks. This may not come as easily for some as it does for others. When the market is winning, investors may become too complacent given the ease of gains. Staying on top of the investing scene even when everything is good may help to prepare if conditions change and the climate starts to worsen.

The Earnings to Price yield of Husky Energy Inc. (TSX:HSE) is 0.154161. 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 Husky Energy Inc. TSX:HSE is 0.066322. 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 Husky Energy Inc. (TSX:HSE) is -0.011053.

Tackling the stock market may involve many different aspects. Investors may at times feel like they are on a wild ride. Sometimes there are extreme highs, and sometimes there are extreme lows. Figuring out how to best deal with fluctuations can help the investor’s mindset. Investors who are able to keep their emotions in check might be one step ahead of the rest. Being able to identify emotional weaknesses can help the investor avoid tricky situations when things get hairy. Keeping the stock portfolio on the profitable side may involve making decisions that require emotional detachment. When emotions are running high, it may impair the rational decision making capability of the investor.



Quant Scores/Key Ratios

Now we’ll turn to some key quant data and ratios. The Current Ratio of Husky Energy Inc. (TSX:HSE) is 1.13. 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 might have 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.

Husky Energy Inc. (TSX:HSE)’s Leverage Ratio was recently noted as 0.219514. 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.

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 Husky Energy Inc. (TSX:HSE) 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.

At the time of writing, Husky Energy Inc. (TSX:HSE) has a Piotroski F-Score of 3. 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.

Husky Energy Inc. (TSX:HSE) has an M-score Beneish of -2.819525. This M-score model is a little known investment tool that was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Husky Energy Inc. (TSX:HSE) is 3. 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 Husky Energy Inc. (TSX:HSE) is 1.

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 Husky Energy Inc. (TSX:HSE) is 8014. 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”.

Shifting gears, we can see that Husky Energy Inc. (TSX:HSE) has a Q.i. Value of 27.00000. 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.

Price Index/Share Movement

We can now take a quick look at some historical stock price index data. Husky Energy Inc. (TSX:HSE) presently has a 10 month price index of 0.45461. 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 0.44450, the 24 month is 0.67909, and the 36 month is 0.58676. Narrowing in a bit closer, the 5 month price index is 0.67865, the 3 month is 0.68342, and the 1 month is currently 0.73756.

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 Husky Energy Inc. (TSX:HSE) is 34.259200. 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 Husky Energy Inc. (TSX:HSE) is 29.913600. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 28.825700.

Investors are constantly on the lookout for that next great stock pick. Finding that particular stock that had been overlooked by the rest of the investing community can bring great satisfaction to the individual investor. Spotting these stocks may take a lot of time and effort, but the rewards may be well worth it. Knowledge is power, and this principle also translates over to the equity market. Investors who are able to dig a little bit deeper may be setting themselves up for much greater success in the long run. These days, investors have access to a wide range of information. Trying to filter out the important information can be a key factor in portfolio strength. Knowing what data to look for and how to trade that information is extremely important. Successful investors are typically able to focus their energy on the right information and then apply it to a trading strategy.

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1ST Source Bank Grows Position in QUALCOMM, Inc. (NASDAQ:QCOM)

1ST Source Bank increased its position in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 0.7% in the second quarter, Holdings Channel.com …

QUALCOMM logo1ST Source Bank increased its position in shares of QUALCOMM, Inc. (NASDAQ:QCOM) by 0.7% in the second quarter, Holdings Channel.com reports. The firm owned 50,166 shares of the wireless technology company’s stock after purchasing an additional 338 shares during the quarter. 1ST Source Bank’s holdings in QUALCOMM were worth $3,816,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in QCOM. ACG Wealth boosted its position in QUALCOMM by 2.6% in the 1st quarter. ACG Wealth now owns 7,749 shares of the wireless technology company’s stock valued at $442,000 after buying an additional 197 shares during the period. Conning Inc. boosted its position in QUALCOMM by 5.7% in the 1st quarter. Conning Inc. now owns 826,550 shares of the wireless technology company’s stock valued at $47,138,000 after buying an additional 44,907 shares during the period. World Asset Management Inc boosted its position in QUALCOMM by 18.5% in the 1st quarter. World Asset Management Inc now owns 91,562 shares of the wireless technology company’s stock valued at $5,222,000 after buying an additional 14,322 shares during the period. Regent Investment Management LLC boosted its position in QUALCOMM by 12.5% in the 1st quarter. Regent Investment Management LLC now owns 4,492 shares of the wireless technology company’s stock valued at $256,000 after buying an additional 500 shares during the period. Finally, OLD Second National Bank of Aurora boosted its position in QUALCOMM by 4.7% in the 1st quarter. OLD Second National Bank of Aurora now owns 37,027 shares of the wireless technology company’s stock valued at $2,112,000 after buying an additional 1,661 shares during the period. 76.18% of the stock is owned by hedge funds and other institutional investors.

NASDAQ:QCOM opened at $71.26 on Friday. QUALCOMM, Inc. has a one year low of $49.10 and a one year high of $90.34. The company has a debt-to-equity ratio of 2.46, a quick ratio of 1.61 and a current ratio of 1.77. The company has a market cap of $86.63 billion, a price-to-earnings ratio of 22.34, a P/E/G ratio of 1.81 and a beta of 1.62. The firm has a 50-day simple moving average of $74.46.

QUALCOMM (NASDAQ:QCOM) last posted its quarterly earnings results on Wednesday, July 31st. The wireless technology company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.62 by $0.02. QUALCOMM had a net margin of 13.41% and a return on equity of 112.21%. The business had revenue of $4.89 billion during the quarter, compared to analyst estimates of $5.12 billion. During the same quarter in the previous year, the business posted $1.01 EPS. The company’s quarterly revenue was down 12.7% compared to the same quarter last year. Sell-side analysts expect that QUALCOMM, Inc. will post 2.88 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, September 26th. Investors of record on Thursday, September 12th will be paid a dividend of $0.62 per share. The ex-dividend date is Wednesday, September 11th. This represents a $2.48 annualized dividend and a dividend yield of 3.48%. QUALCOMM’s dividend payout ratio (DPR) is presently 77.74%.

QCOM has been the subject of several research reports. Rosenblatt Securities reissued a “buy” rating and issued a $84.00 price objective on shares of QUALCOMM in a research report on Thursday, May 2nd. TheStreet raised shares of QUALCOMM from a “c+” rating to a “b-” rating in a research report on Thursday, August 1st. Edward Jones cut shares of QUALCOMM from a “hold” rating to a “sell” rating and set a $69.31 price objective for the company. in a research report on Thursday, May 23rd. ValuEngine raised shares of QUALCOMM from a “hold” rating to a “buy” rating in a research report on Tuesday, April 16th. Finally, BidaskClub cut shares of QUALCOMM from a “buy” rating to a “hold” rating in a research report on Tuesday. Two research analysts have rated the stock with a sell rating, thirteen have issued a hold rating, fifteen have given a buy rating and one has issued a strong buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $79.93.

In related news, SVP Erin L. Polek sold 1,478 shares of the business’s stock in a transaction that occurred on Friday, August 2nd. The shares were sold at an average price of $70.36, for a total transaction of $103,992.08. Following the completion of the transaction, the senior vice president now owns 1,386 shares in the company, valued at approximately $97,518.96. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Michelle M. Sterling sold 5,560 shares of the business’s stock in a transaction that occurred on Wednesday, May 15th. The stock was sold at an average price of $86.44, for a total transaction of $480,606.40. The disclosure for this sale can be found here. Insiders own 0.11% of the company’s stock.

About QUALCOMM

QUALCOMM Incorporated designs, develops, manufactures, and markets digital communication products worldwide. It operates through three segments: Qualcomm CDMA Technologies (QCT); Qualcomm Technology Licensing (QTL); and Qualcomm Strategic Initiatives (QSI). The QCT segment develops and supplies integrated circuits and system software based on code division multiple access (CDMA), orthogonal frequency division multiple access, and other technologies for use in wireless voice and data communications, networking, application processing, multimedia, and global positioning system products.

Featured Article: What is the Current Ratio?

Want to see what other hedge funds are holding QCOM?Visit HoldingsChannel.com to get the latest 13F filings and insider trades for QUALCOMM, Inc. (NASDAQ:QCOM).

Institutional Ownership by Quarter for QUALCOMM (NASDAQ:QCOM)

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Direct Line Insurance Group plc (LSE:DLG) Volatility in Focus

The 12 month volatility of Direct Line Insurance Group plc (LSE:DLG) is 15.858700. This is calculated by taking weekly log normal returns and …

The 12 month volatility of Direct Line Insurance Group plc (LSE:DLG) is 15.858700. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. 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 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 Direct Line Insurance Group plc (LSE:DLG) is 15.035000. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 17.772000.

Managing the stock portfolio can be a very challenging task. To manage the portfolio successfully, it can take a lot of dedicated time, effort, and perseverance. Studying the market and being in tune with the economic landscape can help investors gain the knowledge that is needed to come out on top. Controlling emotions and consistently following a plan may be the keys to keep the investor on track. As many seasoned investors know, the stock market can be a wild ride full of many ups and downs. Being able to stay calm and focused during the rocky periods can assist the investor when making those highly important portfolio decisions.

At the time of writing, Direct Line Insurance Group plc (LSE:DLG) has a Piotroski F-Score of 6. 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.

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 Direct Line Insurance Group plc (LSE:DLG) over the past 52 weeks is 0.837000. The 52-week range can be found in the stock’s quote summary.

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 Direct Line Insurance Group plc (LSE:DLG) is 0.448435. 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 Direct Line Insurance Group plc is 0.962324. 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.

We can now take a quick look at some historical stock price index data. Direct Line Insurance Group plc (LSE:DLG) presently has a 10 month price index of 1.01920. 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 1.00598, the 24 month is 0.90348, and the 36 month is 1.00609. Narrowing in a bit closer, the 5 month price index is 0.93179, the 3 month is 0.98365, and the 1 month is currently 0.90478.

Dedicated investors often strive hard to set themselves up for success. Finding long-lasting success in the stock market may not be an easy endeavor. The mindset of a short-term trader may differ greatly from that of a long-term investor. Investors often have to be prepared for many different situations. Obtaining the proper knowledge about stocks and the investing world is typically a main goal for active traders and investors. Once the investor is armed with knowledge, they may be able to see things that others cannot. This may involve staying up to date on various fundamentals, technicals, and macro-economic conditions.

Investors may be interested in viewing the Gross Margin score on shares of Direct Line Insurance Group plc (LSE:DLG). The name currently has a score of 13.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative. The Q.i. Value of Direct Line Insurance Group plc is 9.00000. 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 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 Direct Line Insurance Group plc (LSE:DLG) is 3700. 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 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 Direct Line Insurance Group plc (LSE:DLG) is 5219. The lower the ERP5 rank, the more undervalued a company is thought to be.

Dedicated investors often strive hard to set themselves up for success. Finding long-lasting success in the stock market may not be an easy endeavor. The mindset of a short-term trader may differ greatly from that of a long-term investor. Investors often have to be prepared for many different situations. Obtaining the proper knowledge about stocks and the investing world is typically a main goal for active traders and investors. Once the investor is armed with knowledge, they may be able to see things that others cannot. This may involve staying up to date on various fundamentals, technicals, and macro-economic conditions.

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A Side-by-side Analysis of NVIDIA Corporation (NVDA) and Cadence Design Systems, Inc. (CDNS)

NVIDIA Corporation (NASDAQ:NVDA) shares are up more than 14.12% this year and recently increased 1.03% or $1.56 to settle at $152.35. Cadence …

NVIDIA Corporation (NASDAQ:NVDA) shares are up more than 14.12% this year and recently increased 1.03% or $1.56 to settle at $152.35. Cadence Design Systems, Inc. (NASDAQ:CDNS), on the other hand, is up 59.04% year to date as of 08/06/2019. It currently trades at $69.15 and has returned -8.46% during the past week.

NVIDIA Corporation (NASDAQ:NVDA) and Cadence Design Systems, Inc. (NASDAQ:CDNS) are the two most active stocks in the Semiconductor – Specialized industry based on today’s trading volumes. We will compare the two companies based on the strength of various metrics, including growth, profitability, risk, return, and valuation to determine if one is a better investment than the other.

Growth

The ability to grow earnings at a compound rate over time is a crucial determinant of investment value. Analysts expect NVDA to grow earnings at a 12.50% annual rate over the next 5 years. Comparatively, CDNS is expected to grow at a 12.00% annual rate. All else equal, NVDA’s higher growth rate would imply a greater potential for capital appreciation.

Profitability and Returns

A high growth rate isn’t necessarily valuable to investors. In fact, companies that overinvest in low return projects just to achieve a high growth rate can actually destroy shareholder value. Profitability and returns are a measure of the quality of a company’s business and its growth opportunities. We’ll use EBITDA margin and Return on Investment (ROI) to measure this., compared to an EBITDA margin of 26.85% for Cadence Design Systems, Inc. (CDNS). NVDA’s ROI is 32.50% while CDNS has a ROI of 21.00%. The interpretation is that NVDA’s business generates a higher return on investment than CDNS’s.

Cash Flow

The value of a stock is simply the present value of its future free cash flows. NVDA’s free cash flow (“FCF”) per share for the trailing twelve months was +0.80. Comparatively, CDNS’s free cash flow per share was -. On a percent-of-sales basis, NVDA’s free cash flow was 4.16% while CDNS converted 0% of its revenues into cash flow. This means that, for a given level of sales, NVDA is able to generate more free cash flow for investors.

Liquidity and Financial Risk

Analysts look at liquidity and leverage ratios to assess how easily a company can cover its liabilities. NVDA has a current ratio of 9.00 compared to 1.60 for CDNS. This means that NVDA can more easily cover its most immediate liabilities over the next twelve months. NVDA’s debt-to-equity ratio is 0.00 versus a D/E of 0.24 for CDNS. CDNS is therefore the more solvent of the two companies, and has lower financial risk.

Valuation

NVDA trades at a forward P/E of 21.38, a P/B of 9.53, and a P/S of 8.85, compared to a forward P/E of 30.07, a P/B of 13.20, and a P/S of 8.79 for CDNS. Given that earnings are what matter most to investors, analysts tend to place a greater weight on the P/E.

Analyst Price Targets and Opinions

A cheap stock isn’t a good investment if the stock is priced accurately. To get a sense of “value” we must compare the current price to some measure of intrinsic value such as a price target. NVDA is currently priced at a -17.38% to its one-year price target of 184.40. Comparatively, CDNS is -5.71% relative to its price target of 73.34. This suggests that NVDA is the better investment over the next year.

Risk and Volatility

No discussion on value is complete without taking into account risk. Analysts use a stock’s beta, which measures the volatility of a stock compared to the overall market, to measure systematic risk. A stock with a beta above 1 is more volatile than the market. Conversely, a beta below 1 implies a below average level of risk. NVDA has a beta of 2.06 and CDNS’s beta is 1.16. CDNS’s shares are therefore the less volatile of the two stocks.

Insider Activity and Investor Sentiment

The analysis of insider buying and selling trends can be extended to the aggregate level. Short interest, which represents the percentage of a stock’s tradable shares currently being shorted, captures what the market as a whole feels about a stock. NVDA has a short ratio of 1.08 compared to a short interest of 2.52 for CDNS. This implies that the market is currently less bearish on the outlook for NVDA.

Summary

NVIDIA Corporation (NASDAQ:NVDA) beats Cadence Design Systems, Inc. (NASDAQ:CDNS) on a total of 12 of the 14 factors compared between the two stocks. NVDA is growing fastly, is more profitable, generates a higher return on investment, has higher cash flow per share, has a higher cash conversion rate, higher liquidity and has lower financial risk. In terms of valuation, NVDA is the cheaper of the two stocks on an earnings and book value, NVDA is more undervalued relative to its price target. Finally, NVDA has better sentiment signals based on short interest.

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3351 Shares in Fortinet Inc (NASDAQ:FTNT) Bought by FDx Advisors Inc.

AQR Capital Management LLC increased its stake in Fortinet by 35.5% in the first quarter. AQR Capital Management LLC now owns 3,803,217 shares …

Fortinet logoFDx Advisors Inc. purchased a new position in shares of Fortinet Inc (NASDAQ:FTNT) during the 2nd quarter, Holdings Channel.com reports. The firm purchased 3,351 shares of the software maker’s stock, valued at approximately $257,000.

A number of other large investors also recently made changes to their positions in the stock. BlackRock Inc. raised its stake in Fortinet by 4.0% during the 1st quarter. BlackRock Inc. now owns 10,830,955 shares of the software maker’s stock worth $909,477,000 after acquiring an additional 411,632 shares in the last quarter. AQR Capital Management LLC increased its stake in Fortinet by 35.5% in the first quarter. AQR Capital Management LLC now owns 3,803,217 shares of the software maker’s stock valued at $316,808,000 after purchasing an additional 997,004 shares during the period. MERIAN GLOBAL INVESTORS UK Ltd increased its stake in Fortinet by 3.2% in the first quarter. MERIAN GLOBAL INVESTORS UK Ltd now owns 2,682,806 shares of the software maker’s stock valued at $225,275,000 after purchasing an additional 83,797 shares during the period. Geode Capital Management LLC increased its stake in Fortinet by 50.3% in the fourth quarter. Geode Capital Management LLC now owns 2,351,384 shares of the software maker’s stock valued at $165,377,000 after purchasing an additional 787,230 shares during the period. Finally, Bank of Montreal Can increased its stake in Fortinet by 5.7% in the first quarter. Bank of Montreal Can now owns 2,132,487 shares of the software maker’s stock valued at $179,063,000 after purchasing an additional 115,253 shares during the period. Hedge funds and other institutional investors own 73.22% of the company’s stock.

In other news, CFO Keith Jensen sold 1,850 shares of the business’s stock in a transaction dated Tuesday, May 14th. The shares were sold at an average price of $81.17, for a total transaction of $150,164.50. Following the transaction, the chief financial officer now directly owns 1,607 shares in the company, valued at $130,440.19. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Michael Xie sold 40,000 shares of the business’s stock in a transaction dated Monday, June 3rd. The stock was sold at an average price of $70.43, for a total transaction of $2,817,200.00. Following the transaction, the vice president now owns 6,388,548 shares in the company, valued at $449,945,435.64. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 59,572 shares of company stock worth $4,416,585. Company insiders own 17.20% of the company’s stock.

Shares of Fortinet stock opened at $80.86 on Tuesday. Fortinet Inc has a 52-week low of $64.41 and a 52-week high of $96.96. The business’s 50-day moving average price is $81.27. The firm has a market capitalization of $14.69 billion, a price-to-earnings ratio of 71.56, a price-to-earnings-growth ratio of 4.37 and a beta of 1.08.

Fortinet (NASDAQ:FTNT) last issued its quarterly earnings results on Thursday, August 1st. The software maker reported $0.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.30 by $0.28. Fortinet had a net margin of 19.07% and a return on equity of 23.96%. The business had revenue of $521.70 million for the quarter, compared to analyst estimates of $511.38 million. During the same period in the previous year, the business posted $0.41 earnings per share. The business’s revenue was up 18.2% compared to the same quarter last year. As a group, analysts expect that Fortinet Inc will post 1.31 earnings per share for the current fiscal year.

FTNT has been the topic of a number of recent research reports. OTR Global upgraded shares of Fortinet to a “positive” rating in a research note on Monday, April 15th. Northland Securities restated a “buy” rating and issued a $100.00 price objective on shares of Fortinet in a research note on Friday, May 3rd. ValuEngine lowered shares of Fortinet from a “buy” rating to a “hold” rating in a research note on Monday, July 29th. Bank of America upgraded shares of Fortinet from a “neutral” rating to a “buy” rating in a research note on Friday. Finally, Monness Crespi & Hardt restated a “buy” rating and issued a $102.00 price objective (up from $97.00) on shares of Fortinet in a research note on Friday. Three investment analysts have rated the stock with a sell rating, fourteen have given a hold rating and eleven have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $87.96.

Fortinet Profile

Fortinet, Inc provides broad, integrated, and automated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and wide area network acceleration; FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of software solutions, which offers a cloud-ready security information and event management solutions.

Further Reading: What is Forex?

Want to see what other hedge funds are holding FTNT?Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Fortinet Inc (NASDAQ:FTNT).

Institutional Ownership by Quarter for Fortinet (NASDAQ:FTNT)

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