In taking a look at some key indicators for Otonomy, Inc. (NasdaqGS:OTIC), we note that the current Book to Market value for the firm is at 0.944920. The Book to Market or BTM is calculated as Market Value (or Stock Price)/Book Value. Investors often look for shares with high Book to Market value as this could indicate that the equity is priced below market value and underpriced.
Price Index/Share Movement
We can now take a quick look at some historical stock price index data. Otonomy, Inc. (NasdaqGS:OTIC) presently has a 10 month price index of 0.60440. 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 0.54455, the 24 month is 0.21569, and the 36 month is 0.18519. Narrowing in a bit closer, the 5 month price index is 1.04563, the 3 month is 1.25571, and the 1 month is currently 1.36816.
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 Otonomy, Inc. (NasdaqGS:OTIC) is 93. 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 Otonomy, Inc. (NasdaqGS:OTIC) is 91.
Otonomy, Inc. (NasdaqGS:OTIC) 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 Otonomy, Inc. (NasdaqGS:OTIC) is 19368. 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”.
Otonomy, Inc. (NasdaqGS:OTIC) has an M-score Beneish of -4.023894. 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 Otonomy, Inc. (NasdaqGS:OTIC) is 16485. 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 Otonomy, Inc. (NasdaqGS:OTIC) is 57.594400. 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 Otonomy, Inc. (NasdaqGS:OTIC) is 58.900600. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 56.105100.
We can now take a quick look at some historical stock price index data. Otonomy, Inc. (NasdaqGS:OTIC) presently has a 10 month price index of 0.60440. 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 0.54455, the 24 month is 0.21569, and the 36 month is 0.18519. Narrowing in a bit closer, the 5 month price index is 1.04563, the 3 month is 1.25571, and the 1 month is currently 1.36816.
ROIC
The Return on Invested Capital (aka ROIC) for Otonomy, Inc. (NasdaqGS:OTIC) is -4.193426. 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 Otonomy, Inc. (NasdaqGS:OTIC) is -2.532096. 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 Otonomy, Inc. (NasdaqGS:OTIC) is -5.135480.
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Investors looking to potentially add any security to their portfolio should do all necessary research before making any investment decision.
The price to earnings ratio for Hallenstein Glasson Holdings Limited (NZSE:HLG) is 9.258221. This ratio is found by taking the current share price and dividing by earnings per share. Further, Price to Book ratio for Hallenstein Glasson Holdings Limited NZSE:HLG is 3.706675. A lower price to book ratio indicates that the stock might be undervalued.
Now we’ll turn to some key quant data and additional ratios. The Current Ratio of Hallenstein Glasson Holdings Limited (NZSE:HLG) is 1.91. 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.
Hallenstein Glasson Holdings Limited (NZSE:HLG)’s Leverage Ratio was recently noted as 0.000000. 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 Hallenstein Glasson Holdings Limited (NZSE:HLG) is 6.00000. 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, Hallenstein Glasson Holdings Limited (NZSE:HLG) has a Piotroski F-Score of 8. 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.
Hallenstein Glasson Holdings Limited (NZSE:HLG) has an M-score Beneish of -4.010424. 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 Hallenstein Glasson Holdings Limited (NZSE:HLG) is 21. 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 Hallenstein Glasson Holdings Limited (NZSE:HLG) is 13.
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 Hallenstein Glasson Holdings Limited (NZSE:HLG) is 456. 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 Hallenstein Glasson Holdings Limited (NZSE:HLG) has a Q.i. Value of 4.00000. 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.
At the time of writing, Hallenstein Glasson Holdings Limited (NZSE:HLG) has a Piotroski F-Score of 8. 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.
In conclusion, there are a number of signals that can be looked at in order to determine if a company will continue to grow earnings and if they are a good investment for a portfolio. Potential investors should do all due dilligence before making an investment decision.
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