How Does the Quant Scorecard Look For Telstra Corporation Limited (ASX:TLS)? ROA of …

Taking a look at some key metrics and ratios for Telstra Corporation Limited (ASX:TLS), we note that the ROA or Return on Assets stands at 0.073088.

Taking a look at some key metrics and ratios for Telstra Corporation Limited (ASX:TLS), we note that the ROA or Return on Assets stands at 0.073088. Return on Assets shows how many dollars of earnings result from each dollar of assets the company controls. Return on assets gives an indication of the capital intensity of the company, which will also depend on the type of industry.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares.

In addition to ROA, there are a number of additional ratios and Quant signals available to investors in order to decipher if the shares are a good fit for their portfolio. The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Telstra Corporation Limited (ASX:TLS) is 0.038570. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Telstra Corporation Limited ASX:TLS is 0.02532. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s 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 EBITDA Yield for Telstra Corporation Limited (ASX:TLS) is 0.090146.

The Earnings to Price yield of Telstra Corporation Limited ASX:TLS is 0.078877. 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 Telstra Corporation Limited ASX:TLS is 0.044002. 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 Telstra Corporation Limited (ASX:TLS) is 0.095812.

From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.

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 Telstra Corporation Limited ASX:TLS is 2.691142. 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 Telstra Corporation Limited (ASX:TLS) is 5.109301. 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 Telstra Corporation Limited (ASX:TLS) is 12.677961. This ratio is found by taking the current share price and dividing by earnings per share.

Quant

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 Telstra Corporation Limited (ASX:TLS) 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 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 Telstra Corporation Limited (ASX:TLS) is 17.00000. 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.

When it comes to securing profits in the stock market, investors may be trying to find a perfect system to help attain that goal. Dedicated investors may try strategies that have been passed on to them from other seasoned investors. Even after reading every piece of literature about investing, it might be hard to figure out which way is the best way to successfully conquer the market. Studying up on company fundamentals and following technical stock levels can be a good place to start, but creating and implementing a plan can be difficult. As we all know, markets change over time. What drives a market during one point in time may not drive the market at a future date. Knowing what to look for when studying technical levels or fundamentals may help lead down the path to increased profits. Many investors will choose to study the indicators with the highest probability of forecasting future market action.

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 Telstra Corporation Limited (ASX:TLS) is 7866. The lower the ERP5 rank, the more undervalued a company is thought to be.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Telstra Corporation Limited (ASX:TLS) has an M-Score of -2.998259. 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 Telstra Corporation Limited (ASX:TLS) is 30. 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 Telstra Corporation Limited (ASX:TLS) is 23.

Investors may be taking a closer look stock market trends as we move into the second half of the year. Investors often have to grapple with the timing of selling a stock. After all the research is done and the portfolio is rounded out, the time will eventually come when decisions need to be made about whether to hold a winner or sell to lock up some profits. Often times, investors will hold on to a certain stock for much too long letting profits erode. Thinking that a hot stock will keep going higher and higher, may lead to lost profits further down the road. On the flip side, investors may become emotionally attached to a stock and not be able to part ways when the time has come. Avoiding the trap of waiting for a stock to bounce back and just break even can lead to the undoing of the portfolio. The belief that a particular stock will definitely come back to the buying level may leave investors out in the cold. Being able to keep the emotions in check and stay focused on the pertinent data, may help the stock portfolio thrive into the future.

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Investor Watch: Quant Signal Review on Telstra Corporation Limited (ASX:TLS) as ROE Touches …

In reviewing some key ratios and quant data for Telstra Corporation Limited (ASX:TLS), we note that the mother of all ratios (Return on Equity) stands …

In reviewing some key ratios and quant data for Telstra Corporation Limited (ASX:TLS), we note that the mother of all ratios (Return on Equity) stands at 0.212269 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 wondering what’s in store for the next few months in terms of the equity market. Many investors may be hesitant to get into the mix with markets still trading at such high levels. Sometimes, the fear of missing out on the next big run will cause investors to make hasty decisions. Taking the time to do the full research can help offset the jitters associated with picking stocks. Finding stocks that still have room to head higher can be tricky, but there are still plenty of them out there. Although nobody can say for certain which way the market will trend into the New Year, investors should be on the lookout for opportunities that may present themselves over the next quarter. All eyes will be focused on company earnings when the next round of earnings reports begins.

Further, we can look at some other ratios and financial indicators in order to get an idea of the company’s valuation. Telstra Corporation Limited (ASX:TLS) presently has a current ratio of 0.92. 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 Telstra Corporation Limited (ASX:TLS) is 0.086780.

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 Telstra Corporation Limited (ASX:TLS) is 0.073088. 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.

Investing in the stock market can sometimes be a wild ride. Without the proper planning and research, investors may quickly find themselves on the outside looking in. Doing the research and studying the market can be helpful, but creating a trading or investing plan may be the most important part of the process. When the back testing and practice is completed, the real challenge awaits. The practice and preparation can be very helpful for understanding the market, but when real money gets put on the line, it can be a whole different ballgame. The more successful traders and investors are the ones who are able to stay focused and disciplined even throughout turbulent market situations.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Telstra Corporation Limited (ASX:TLS) has an M-Score of -2.998259. 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 Telstra Corporation Limited (ASX:TLS) is 30. 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 Telstra Corporation Limited (ASX:TLS) 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 Telstra Corporation Limited (ASX:TLS) is 7918. 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 Telstra Corporation Limited ASX:TLS is 0.077234. 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 Telstra Corporation Limited ASX:TLS is 0.043377. 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 Telstra Corporation Limited (ASX:TLS) is 0.094450.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Telstra Corporation Limited (ASX:TLS) for last month was 1.02752. 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 Telstra Corporation Limited (ASX:TLS) is 1.10248.

As many investors probably already know, there is no one way to select winning stocks. There are plenty of different theories and ideas out there, and it may become overwhelming to look at all of them. Individual investors who manage their own money may have to dedicate an ample amount of time to find a strategy that works for them. Understanding portfolio diversification, personal risk tolerance, and time horizon may be a good place for the investor to start. Because there is no guarantee that past performance will indicate future results, investors may have to be willing to come at the market from a few different angles.

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 Telstra Corporation Limited (ASX:TLS) over the past 52 weeks is 0.985000. The 52-week range can be found in the stock’s quote summary.

Doing standard fundamental stock analysis is fairly straightforward. These days, investors have easy access to large amounts of available data. The biggest problem for the average investor may be dedicating the time to actually doing the research. One goal of studying the fundamentals is to establish the true value of a stock compared to how it is currently trading in the marketplace. Many investors believe that identifying quality stocks should be a cornerstone of portfolio construction. Obtaining as much knowledge as possible about a stock can help make the buying decisions a little easier. Some investors may trust other people or products to do the required research, but others may wish to roll up the sleeves and do all the analysis themselves.

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Stocks in Focus: Telstra Corporation Limited (ASX:TLS), LPL Financial Holdings Inc. (NasdaqGS …

The EBITDA Yield for Telstra Corporation Limited (ASX:TLS) is 0.088505. The EBITDA Yield is a great way to determine a company’s profitability.
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The EBITDA Yield for Telstra Corporation Limited (ASX:TLS) is 0.088505. The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.

Investors are usually striving to find that next big stock to add to the portfolio. With markets still riding high, investors will be closely watching the numbers as companies start reporting quarterly earnings results. Investors will also be keeping an eye on key economic data over the next few weeks. Many individual investors will approach the stock market from various angles. This may include following fundamental and technical information, and it may also include following analyst projections.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This 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 Telstra Corporation Limited (ASX:TLS) is 7886. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, 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 Telstra Corporation Limited (ASX:TLS) is 7963. 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”.

Piotroski F-Score

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 Telstra Corporation Limited (ASX:TLS) 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 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 Telstra Corporation Limited (ASX:TLS) is 17.00000. 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.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Telstra Corporation Limited (ASX:TLS) for last month was 1.03364. 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 Telstra Corporation Limited (ASX:TLS) is 1.09846.

Valuation

Telstra Corporation Limited (ASX:TLS) presently has a current ratio of 0.92. 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 Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Telstra Corporation Limited (ASX:TLS) is 30. 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 Telstra Corporation Limited (ASX:TLS) is 24.

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 Telstra Corporation Limited ASX:TLS is 2.764760. 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 Telstra Corporation Limited (ASX:TLS) is 5.249069. 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 Telstra Corporation Limited (ASX:TLS) is 13.024775. This ratio is found by taking the current share price and dividing by earnings per share.

FCF

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 Telstra Corporation Limited (ASX:TLS) is 0.086429.

Investors might be looking to sharpen the gaze and focus on recent market action. As we move into the second part of the year, everyone will be watching to see which way the stock market momentum shifts. Many believe that the bulls are still charging while others feel like the bears may be waiting in the wings. There are various schools of thought when it comes to trading stocks. Investors may have to first asses their appetite for risk in order to start creating a solid investment plan.

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The EBITDA Yield for LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 0.107452. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s 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 EBITDA Yield is a great way to determine a company’s profitability.

Investors may be looking for solid stocks to add to the portfolio. Sometimes, investors may choose to go against the grain and try something that nobody else is doing. This typically comes with plenty of time and research examining those appealing stocks. Digging into the fundamentals as well as tracking technical levels can help separate the winners from the losers. Investors who are able to keep the required temperament may be able to cope with market volatility and get positioned to take advantage of any opportunity that presents itself.



ROIC



The Return on Invested Capital (aka ROIC) for LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 0.425086. 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 12.395335. 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 0.362961.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 3825. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 1470. 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”.

Piotroski F-Score

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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 8. 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.

Gross Margin

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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 10.00000. 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.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of LPL Financial Holdings Inc. (NasdaqGS:LPLA) for last month was 1.15661. 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 1.29576.

Shareholder Yield, Shareholder Yield (Mebane Faber)

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a company through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 0.077124. This percentage is calculated by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can increase the shareholder value, too. Another way to determine the effectiveness of a company’s distributions is by looking at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of LPL Financial Holdings Inc. NasdaqGS:LPLA is 0.06774. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

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 LPL Financial Holdings Inc. NasdaqGS:LPLA is 6.907568. 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 10.912309. 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 LPL Financial Holdings Inc. (NasdaqGS:LPLA) is 13.912151. This ratio is found by taking the current share price and dividing by earnings per share.

Investors may be looking for solid stocks to add to the portfolio. Sometimes, investors may choose to go against the grain and try something that nobody else is doing. This typically comes with plenty of time and research examining those appealing stocks. Digging into the fundamentals as well as tracking technical levels can help separate the winners from the losers. Investors who are able to keep the required temperament may be able to cope with market volatility and get positioned to take advantage of any opportunity that presents itself.

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Telstra Corporation Limited (ASX:TLS), Xylem Inc. (NYSE:XYL): Quant Signal Evaluation & Review

Here will take a quick scan of Earnings Yield information on shares of Telstra Corporation Limited (ASX:TLS). Currently, the Earnings to Price (Yield) is …

Here will take a quick scan of Earnings Yield information on shares of Telstra Corporation Limited (ASX:TLS). Currently, the Earnings to Price (Yield) is 0.076777, Earnings Yield is 0.043201, and Earnings Yield 5 year average is 0.094068. Earnings yield provides a way for investors to help measure returns. Investors may choose to compare the earnings yield of stocks to money market instruments, treasuries, or bonds. The firm will look to it’s next scheduled report date to try to improve on these numbers.

When examining current stock market levels, investors who have been staying on the sidelines may be wondering if now is a good time to get back into the ring. Nobody can say for sure if momentum will continue to push to the upside, and investors may be overly cautious at this stage. Studying company financials and paying attention to pertinent economic data can help the investor make more educated decisions when it comes to the stock market. It is obviously very hard for a new investor to become highly successful in the stock market right out of the gate. Doing all the homework and dedicating the proper amount of time can help the investor get on the right track to accumulating profits down the road.

Checking in on some valuation rankings, Telstra Corporation Limited (ASX:TLS) has a Value Composite score of 30. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 23.

FCF



Turning to 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 Telstra Corporation Limited (ASX:TLS) is -0.073566. 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 Telstra Corporation Limited (ASX:TLS) is 0.626842. 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.

Watching some historical volatility numbers on shares of Telstra Corporation Limited (ASX:TLS), we can see that the 12 month volatility is presently 26.732300. The 6 month volatility is 21.326400, and the 3 month is spotted at 14.970200. 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. Heading into earnings season investors often take close note of the volatility levels ahead of and immediately after the earnings report.

Price Index



The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Telstra Corporation Limited (ASX:TLS) for last month was 1.02424. 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 Telstra Corporation Limited (ASX:TLS) is 1.11562.

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 Telstra Corporation Limited (ASX:TLS) over the past 52 weeks is 0.991000. The 52-week range can be found in the stock’s quote summary.

Quant Data

Shifting gears, we can see that Telstra Corporation Limited (ASX:TLS) has a Q.i. Value of 26.00000. 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.

Another signal that many company execs and investors don’t want to talk about is the C-Score. The C-Score is a system developed by James Montier that helps determine whether a company is involved in inflating their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Telstra Corporation Limited (ASX:TLS) is 3.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of unusual activity. The C-Score assists investors in assessing the validity of financials.

F-Score

At the time of writing, Telstra Corporation Limited (ASX:TLS) has a Piotroski F-Score of 4. 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.

As we move closer to the close of the year, investors will be closely watching the next round of company earnings results. Investors may choose to closely follow Wall Street analyst projections around earnings periods. Analysts will typically make adjustments to estimates as the earnings date approaches. Many investors will look to see which way the estimate revisions are trending heading into the earnings report. Once the release is published, analysts have the ability to make further updates based on actual information that the company provides.

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 Xylem Inc. (NYSE:XYL) stands at 0.039950. 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 Xylem Inc. (NYSE:XYL) is 0.028195. Further, the Earnings to Price yield of Xylem Inc. NYSE:XYL is 0.036600. 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.

Successful stock market investing often begins with setting up measureable and viable goals. Investors who set attainable goals and craft a plan to achieve those goals may find themselves in a much better position than the investor who does not. It can be very tempting to jump into the stock market and start investing. When the market is riding high, investors may be quick to act so they do not miss out on the action. Entering the stock market without a plan can lead to future distress when the markets turn downward for an extended period of time. Having a plan for multiple scenarios can help the investor ride out the storm when it 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 Xylem Inc. (NYSE:XYL) is 58. 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 Xylem Inc. (NYSE:XYL) is 53.

Xylem Inc. (NYSE:XYL) currently has a Montier C-score of 1.00000. 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 Xylem Inc. (NYSE:XYL) is 4780. 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”.

Xylem Inc. (NYSE:XYL) has an M-score Beneish of -2.414946. 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 Xylem Inc. (NYSE:XYL) is 6288. 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 Xylem Inc. (NYSE:XYL) is 27.368300. 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 Xylem Inc. (NYSE:XYL) is 17.052600. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 25.374100.

We can now take a quick look at some historical stock price index data. Xylem Inc. (NYSE:XYL) presently has a 10 month price index of 1.24386. 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 1.19753, the 24 month is 1.65666, and the 36 month is 2.02757. Narrowing in a bit closer, the 5 month price index is 1.15685, the 3 month is 1.19230, and the 1 month is currently 1.03525.

ROIC

The Return on Invested Capital (aka ROIC) for Xylem Inc. (NYSE:XYL) is 0.425846. 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 Xylem Inc. (NYSE:XYL) is 9.963993. 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 Xylem Inc. (NYSE:XYL) is 0.285614.

At times, investors may be prone to making impulsive or irrational decisions when it comes to the stock market. Finding a way to leave emotions out of important investing decisions can greatly assist the investor in achieving their goals. Investors who stay committed to a plan may be able to fight off emotional urges when certain situations arise. Investors may find it useful to rebalance the portfolio as opposed to chasing market performance when adjustments need to be made. Making sure the stock portfolio is aligned to suit the goals of the individual investor may play an important role in being able to consistently sustain profits well into the future.

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Telstra To Sell 49% Stake In New Unlisted Property Trust; Appoints UBS For $1.5b Sale

Telstra Corporation Limited (ASX: TLS) is engaged in providing telecommunication and information services and is a telecommunication carrier.
Telstra To Sell 49% Stake In New Unlisted Property Trust; Appoints UBS For $1.5b Sale

Telstra Corporation Limited (ASX: TLS) is engaged in providing telecommunication and information services and is a telecommunication carrier.

Telstra Corporation has appointed UBS to look for a buyer for a stake in a new unlisted property trust that would consist of 37 strategic telecommunication exchange sites situated in Australian capital cities and major metropolitan areas.

The buyer could have a 49 per cent stake in the trust which would be a hub of telecommunication exchange properties presently under ownership of the company. The sale is expected to be worth $1.5 billion.

On behalf of Telstra Corporation, UBS has started to initiate the discussions with the Australian and offshore real estate investors.

According to the sources, Telstra would retain its major shareholding in the new vehicle. The company will lease the property portfolio for a 21-year weighted average lease term back from the trust. However, the extension of the lease term would be possible as per the Telstra’s requirements.

During the lease term, the company will take charge of the all outgoings, repairs and maintenance and capital expenditure.

A similar co-investor process was run by UBS last year when Healthscope Limited (ASX: HSO), a company operating private hospitals and medical centres in Australia, was looking for a buyer for a 49 per cent stake in the sale of its 22 properties. Healthscope finally made a deal with two North Americans buying the company’s stake.

Telstra announced its property plans after a year since it’s Chief Executive Officer Andy Penn signalled the company’s plans to sell its assets worth $2 billion by the end of 2020.

In a recent announcement, Telstra has also waived off its long-standing monthly fee to unlock maximum speeds. This would enable the cable broadband customers to experience an unrestricted 100 Mbps speed this month. Around 500,000 customers would be at an advantage from this free speed boost.

At the end of March, the leading telecom company paid interim dividend of 8 cps (fully franked) incorporating an ordinary interim dividend of 5 cents per share and a special interim dividend of 3 cents per share.

The company released its half-year results for the financial year 2019 on 14th Feb 2019. The results indicated a strong performance of the company in customer numbers over the six months. The company reported a total income of $13.8 billion on a reported and guidance basis. The Net Profit after Tax stood at $1.2 billion. Also, EBITDA was recorded at $4.3 billion on a reported basis and $4.7 billion on a guidance basis excluding the restructuring costs.

During the half-year period, the company added around 239K retail postpaid mobile services and 125K wholesale mobile services that included both postpaid and prepaid.

The company’s stock is currently trading at AUD 3.355 (at 02:14 PM AEST, 2nd May 2019), down by 1.324% than the previous day’s stock price. ~7.6 million number of shares are currently in circulation today while 11.89 billion shares are outstanding. The 52-week high and low value of the stock is AUD 3.460 and AUD 2.547 respectively.


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