Here we will take a look into some valuation metrics for Cree, Inc. NasdaqGS:CREE shares.
Price-To-Cash-Flow-Ratio is a term that indicates the degree of cash flow valuation of the enterprise in the securities market. It is derived from the P/E – Price Earnings Ratio, in which the profit is replaced by cash flow. Unlike P/E, the ratio isn’t affected by the chosen depreciation methods, making it suitable for geographic comparison. Cree, Inc. currently has a P/CF ratio of 29.780838.
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Watching some historical volatility numbers on shares of Cree, Inc. (NasdaqGS:CREE), we can see that the 12 month volatility is presently 39.0899. The 6 month volatility is 37.9046, and the 3 month is spotted at 45.7645. 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.
We can now take a quick look at some historical stock price index data. Cree, Inc. (NasdaqGS:CREE) presently has a 10 month price index of 1.21425. 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 1.26183, the 24 month is 1.8729, and the 36 month is 1.71412. Narrowing in a bit closer, the 5 month price index is 0.88751, the 3 month is 0.86113, and the 1 month is currently 1.25491.
Looking at some ROIC (Return on Invested Capital) numbers, Cree, Inc. (NasdaqGS:CREE)’s ROIC is -0.04611. The ROIC 5 year average is 0.010018 and the ROIC Quality ratio is 4.101925. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits. In terms of EBITDA Yield, Cree, Inc. (NasdaqGS:CREE) currently has a value of 0.020761. This value is derived by dividing EBITDA by Enterprise Value.
The Price to Book ratio (Current share price / Book value per share) is a good valuation measure you can use to find undervalued investment ideas. A low Price to Book could indicate that the shares are undervalued in their industry. Generally speaking a P/B ratio under 1 is considered low and is best used in relation to asset-heavy firms. At the time of writing Cree, Inc. (NasdaqGS:CREE) has a price to book ratio of 1.998588.
The Leverage Ratio of Cree, Inc. (NasdaqGS:CREE) is 0.160904. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.
There are many different tools to determine whether a company is profitable or not. 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 Cree, Inc. (NasdaqGS:CREE) is -0.102024. 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.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Cree, Inc. (NasdaqGS:CREE) is 64. 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 Cree, Inc. (NasdaqGS:CREE) is 68.
At the time of writing, Cree, Inc. (NasdaqGS:CREE) 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.
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 Cree, Inc. NasdaqGS:CREE is 1.998588. 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 Cree, Inc. (NasdaqGS:CREE) is 29.780838. 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 Cree, Inc. (NasdaqGS:CREE) is -16.168507. This ratio is found by taking the current share price and dividing by earnings per share.
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In order to determine if a company is fairly valued, we can look at a number of different ratios and metrics. First off we’ll take a look at the Price to Cash Flow ratio of Matthews International Corporation (NasdaqGS:MATW). The firm currently has a P/CF ratio of 10.228856.
This is the current Price divided by Cash Flow Per Share for the trailing twelve months. Cash Flow is defined as Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.
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The Return on Invested Capital (aka ROIC) for Matthews International Corporation (NasdaqGS:MATW) is 0.171082. 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 Matthews International Corporation (NasdaqGS:MATW) is 5.89805. 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 Matthews International Corporation (NasdaqGS:MATW) is 0.205618.
Matthews International Corporation (NasdaqGS:MATW) has a Price to Book ratio of 1.674733. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 10.228856, and a current Price to Earnings ratio of 14.316115. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.
After a recent scan, we can see that Matthews International Corporation (NasdaqGS:MATW) has a Shareholder Yield of 0.019805 and a Shareholder Yield (Mebane Faber) of -0.04058. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
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 Matthews International Corporation (NasdaqGS:MATW) is 0.079491.
There are many different tools to determine whether a company is profitable or not. 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 Matthews International Corporation (NasdaqGS:MATW) is 0.043569. 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.
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 Matthews International Corporation (NasdaqGS:MATW) is 17. 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 C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying 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 Matthews International Corporation (NasdaqGS:MATW) is 1. 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 fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
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 Matthews International Corporation (NasdaqGS:MATW) is 5158. The lower the ERP5 rank, the more undervalued a company is thought to be.
At the time of writing, Matthews International Corporation (NasdaqGS:MATW) 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.
Checking in on some valuation rankings, Matthews International Corporation (NasdaqGS:MATW) has a Value Composite score of 27. 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 24.
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.