Investors are constantly examining different financial indicators for potential stocks to own in order to assess trading opportunities. iRobot Corporation (NasdaqGS:IRBT) presently has an EV or Enterprise Value of 3231715. The EV is used to show how the market assigns value to a company as a whole. EV is basically a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Tracking EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.
We can now take a quick look at some historical stock price index data. iRobot Corporation (NasdaqGS:IRBT) presently has a 10 month price index of 1.88105. 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 1.82889, the 24 month is 2.14807, and the 36 month is 3.95987. Narrowing in a bit closer, the 5 month price index is 1.07423, the 3 month is 1.34327, and the 1 month is currently 1.35655.
iRobot Corporation (NasdaqGS:IRBT) has a current ERP5 Rank of 7222. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.
Checking in on some valuation rankings, iRobot Corporation (NasdaqGS:IRBT) has a Value Composite score of 65. 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 59.
Watching some historical volatility numbers on shares of iRobot Corporation (NasdaqGS:IRBT), we can see that the 12 month volatility is presently 66.500800. The 6 month volatility is 57.852300, and the 3 month is spotted at 56.277500. 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.
Current Ratio
The Current Ratio of iRobot Corporation (NasdaqGS:IRBT) is 2.41. 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.
Gross Margin Score
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 iRobot Corporation (NasdaqGS:IRBT) 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.
M-Score (Beneish)
The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. iRobot Corporation (NasdaqGS:IRBT) has an M-Score of -2.337593. 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.
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 iRobot Corporation (NasdaqGS:IRBT) is 6. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.
Investors may be interested in viewing the Gross Margin score on shares of Yelp Inc. (NYSE:YELP). The name currently has a score of 49.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score runs 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.
In taking a look at some additional key numbers, Yelp Inc. (NYSE:YELP) has a current ERP5 Rank of 11840. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.
Yelp Inc. (NYSE:YELP) currently has a Montier C-score of 2.00000. This indicator was developed by James Montier in an attempt to identify firms that were fixing 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 among 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.
Yelp Inc. (NYSE:YELP) has an M-score Beneish of -2.727280. 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 paper written by Beneish called “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 Yelp Inc. (NYSE:YELP) is 62. 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 Yelp Inc. (NYSE:YELP) is 64.
At the time of writing, Yelp Inc. (NYSE:YELP) has a Piotroski F-Score of 5. 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.
Valuation
Yelp Inc. (NYSE:YELP) presently has a current ratio of 13.25. 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 Earnings to Price yield of Yelp Inc. NYSE:YELP is 0.016680. 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 Yelp Inc. NYSE:YELP is 0.010007. 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 Yelp Inc. (NYSE:YELP) is -0.000266.
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 Yelp Inc. (NYSE:YELP) is 0.230013. 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 Yelp Inc. (NYSE:YELP) is 0.826695. 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.
Volatility
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 Yelp Inc. (NYSE:YELP) is 53.561200. 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 Yelp Inc. (NYSE:YELP) is 36.518000. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 58.008800.
