Are Cantargia AB (publ) (OM:CANTA), The Joint Corp. (NasdaqCM:JYNT) Attractively Priced at Current Levels?

Cantargia AB (publ) (OM:CANTA) has a current MF Rank of 16869. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Individual investors are constantly hearing about the next hot stock to buy. Acting purely on these types of tips can be hazardous to the portfolio if the research is not completed. Sometimes these stock tips will pan out and be correct, other times they can leave the investor wondering why they acted on the speculative advice. Even if a stock tip is correct, the results may have already been manifested and the investor would simply be getting in way too late. Knowing what information is reliable can drastically improve the chances of making smarter stock picks. Even the most praised stocks may not be able to withstand an overall market downturn.    

Checking in on some valuation rankings, Cantargia AB (publ) (OM:CANTA) has a Value Composite score of 73. 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 81.

Cantargia AB (publ) (OM:CANTA) has a Price to Book ratio of 5.518409. 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 -13.812108, and a current Price to Earnings ratio of -12.904274. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Shifting gears, we can see that Cantargia AB (publ) (OM:CANTA) has a Q.i. Value of 70.00000. 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.

Watching some historical volatility numbers on shares of Cantargia AB (publ) (OM:CANTA), we can see that the 12 month volatility is presently 60.015100. The 6 month volatility is 53.407700, and the 3 month is spotted at 39.947500. 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. 

At the time of writing, Cantargia AB (publ) (OM:CANTA) 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.

Investors may be interested in viewing the Gross Margin score on shares of Cantargia AB (publ) (OM:CANTA). The name currently has a score of 53.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands 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.

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 Cantargia AB (publ) (OM:CANTA) is -1.063412.  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 Cantargia AB (publ) OM:CANTA is 0.00000.  This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Price Index

We can now take a quick look at some historical stock price index data. Cantargia AB (publ) (OM:CANTA) presently has a 10 month price index of 1.87346. 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 2.11806, the 24 month is 2.22628, and the 36 month is 1.39269. Narrowing in a bit closer, the 5 month price index is 0.82210, the 3 month is 0.75495, and the 1 month is currently 1.02694.

Investors may be looking into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be hard pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be exactly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may help fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also help keep the important investing factors in focus. Covering all the bases may help increase the odds of success when trading equities.

The Joint Corp. (NasdaqCM:JYNT) has a current Magic Formula rank of 12040. The formula which was developed by hedge fund manager Joel Greenblatt, is intended to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Investors might be looking to find some bargains to add to the portfolio as we move closer towards the end of the year. Maybe some of the earlier portfolio picks don’t look as promising as they did a few months ago. There might also be a few names that have fallen off a cliff and do not look they will be returning to previous levels. Investors may be searching for a few overlooked stocks that the rest of the investing community has passed on for whatever reason. Nobody knows for sure what the next couple of quarters have in store. As earnings season kicks off, investors will be closely following the companies that manage to beat expectations by a wide margin.   

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of The Joint Corp. (NasdaqCM:JYNT) is 74.  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 The Joint Corp. (NasdaqCM:JYNT) is 76.

Shifting gears, we can see that The Joint Corp. (NasdaqCM:JYNT) has a Q.i. Value of 55.00000. 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.

Watching some historical volatility numbers on shares of The Joint Corp. (NasdaqCM:JYNT), we can see that the 12 month volatility is presently 40.478800. The 6 month volatility is 38.399500, and the 3 month is spotted at 43.109800. 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. 

Investors may be interested in viewing the Gross Margin score on shares of The Joint Corp. (NasdaqCM:JYNT). The name currently has a score of 2.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands 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.

At the time of writing, The Joint Corp. (NasdaqCM:JYNT) 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.

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 The Joint Corp. (NasdaqCM:JYNT) is 40.478800.  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 The Joint Corp. (NasdaqCM:JYNT) is 43.109800.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 38.399500.

Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average

The Return on Invested Capital (aka ROIC) for The Joint Corp. (NasdaqCM:JYNT) is -0.026083. 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 The Joint Corp. (NasdaqCM:JYNT) is 0.436622. 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 The Joint Corp. (NasdaqCM:JYNT) is -0.298886.

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 The Joint Corp. (NasdaqCM:JYNT) is -0.042497.  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.

With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.