A Look at CropEnergies AG (XTRA:CE2), Information Services Group, Inc. (NasdaqGM:III) : Earnings Yield & Data Deep Dive

The Earnings to Price yield of CropEnergies AG (XTRA:CE2) is 0.050165.  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 CropEnergies AG XTRA:CE2 is 0.069876.  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 CropEnergies AG (XTRA:CE2) is 0.118607.

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Quant Scores/Key Ratios

Now we’ll turn to some key quant data and ratios. The Current Ratio of CropEnergies AG (XTRA:CE2) is 2.05. 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.

CropEnergies AG (XTRA:CE2)’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 CropEnergies AG (XTRA:CE2) is 16.00000. 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, CropEnergies AG (XTRA:CE2) 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.

CropEnergies AG (XTRA:CE2) has an M-score Beneish of -2.559608. 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 CropEnergies AG (XTRA:CE2) is 14.  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 CropEnergies AG (XTRA:CE2) is 9.

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 CropEnergies AG (XTRA:CE2) is 7496.  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 CropEnergies AG (XTRA:CE2) has a Q.i. Value of 9.00000. 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. CropEnergies AG (XTRA:CE2) presently has a 10 month price index of 0.83604. 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 0.68302, the 24 month is 0.95130, and the 36 month is 1.47368. Narrowing in a bit closer, the 5 month price index is 1.08647, the 3 month is 1.08647, and the 1 month is currently 1.07574.

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 CropEnergies AG (XTRA:CE2) is 40.021600.  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 CropEnergies AG (XTRA:CE2) is 39.711900.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 34.097300.

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Here will take a quick scan of Earnings Yield information on shares of Information Services Group, Inc. (NasdaqGM:III). Currently, the Earnings to Price (Yield) is 0.020488, Earnings Yield is 0.056664, and Earnings Yield 5 year average is 0.035728. 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.

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Checking in on some valuation rankings, Information Services Group, Inc. (NasdaqGM:III) has a Value Composite score of 37. 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 47.

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 Information Services Group, Inc. (NasdaqGM:III) is -0.196648.  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 Information Services Group, Inc. (NasdaqGM:III) is 0.417866.  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 Information Services Group, Inc. (NasdaqGM:III), we can see that the 12 month volatility is presently 26.411400. The 6 month volatility is 26.896800, and the 3 month is spotted at 22.137500. 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 Information Services Group, Inc. (NasdaqGM:III) for last month was 1.00721. 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 Information Services Group, Inc. (NasdaqGM:III) is 1.00000.
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 Information Services Group, Inc. (NasdaqGM:III) over the past 52 weeks is 0.783000. The 52-week range can be found in the stock’s quote summary.

Quant Data
Shifting gears, we can see that Information Services Group, Inc. (NasdaqGM:III) has a Q.i. Value of 23.00000. 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 Information Services Group, Inc. (NasdaqGM:III) is 0.00000.  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, Information Services Group, Inc. (NasdaqGM:III) has a Piotroski F-Score of 7. 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 deeper into earnings season, investors may be trying to figure out how to best position the portfolio for the rest of the calendar year. Maybe things haven’t gone as well as planned in the first half of the year, and a few tweaks need to be made to bolster profits in the second half. Closely watching the earnings reports may be a good way to see what companies are getting things right, and what companies have some work to do. Many investors will take notice if a company posts a much larger earnings beat or miss than expected. Not only will the stock most likely become a bit more volatile, but overall interest may be heightened as investors try to piece together the puzzle and figure out why there was such a discrepancy between estimates and actuals. Once the dust settles and the picture becomes a little clearer, investors may be able to properly rotate in or out of a certain name or sector. Finding stocks that look good on paper but have fallen out of favor with certain investors may be a good place to start doing some further number crunching. Locating those overlooked sectors with growth potential might be a good way to uncover those stocks that are ready to make a run.