JBCC Holdings Inc. (TSE:9889), Evolution Petroleum Corporation (AMEX:EPM): How Do These Stocks Score in Terms of Value?

Checking in on some valuation rankings, JBCC Holdings Inc. (TSE:9889) has a Value Composite score of 28. 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. 

At some point, individual investors may find themselves routinely falling prey to the lure of performance chasing. It can be highly tempting to want to be a part of a near-term stock run to the upside. Short-term investors may only be interested in these types of moves, but longer-term investors may want to be a bit more cautious. Chasing performance may end up leading the investor away from previously defined goals and the overall strategy. Investors who are committed to achieving long-term success may occasionally need to reshuffle the deck when the short-term clatter becomes too noisy.

In taking a look at some other notable technicals, JBCC Holdings Inc. (TSE:9889)’s ROIC is 0.127808. The ROIC 5 year average is 0.080412 and the ROIC Quality ratio is 10.667198. 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.

The Q.i. Value of JBCC Holdings Inc. (TSE:9889) is 26.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current 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 average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of JBCC Holdings Inc. (TSE:9889) is 0.024583. 

Shareholder Yield
We also note that JBCC Holdings Inc. (TSE:9889) has a Shareholder Yield of 0.021312 and a Shareholder Yield (Mebane Faber) of 0.02184. 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.

MF Rank
JBCC Holdings Inc. (TSE:9889) has a current MF Rank of 4099. 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.

PI
We can now take aquick look at some historical stock price index data. JBCC Holdings Inc. (TSE:9889) presently has a 10 month price index of 1.39796. 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 1.41860, the 24 month is 1.90613, and the 36 month is 2.32474. Narrowing in a bit closer, the 5 month price index is 1.02337, the 3 month is 0.88054, and the 1 month is currently 0.86873.

There are many traders who think that proper psychology is one of the most important aspects of becoming successful in the stock market. Traders may need to learn how to become confident while overcoming certain fears and dealing with extreme ups and downs. This may not be easy as individuals all draw off of prior experiences at some level. Being able to convert outside success to the stock market may take some work. Traders who are able to overcome previous bias may be on the right path for having the proper mindset when entering the market.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Evolution Petroleum Corporation (AMEX:EPM) is 37.  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 Evolution Petroleum Corporation (AMEX:EPM) is 29.

Technicals

Active investing may be highly stressful at times. Investors often set up trades with the best intentions, but have the tendency to let too much emotion seep into the situation. When dealing with the emotions of market stress, investors may need to figure out how to keep emotions in check in order to make the right decision. This may come easy to some but much harder for others. Because there is no one right way to trade, investors may have to experience certain scenarios for themselves. Creating a plan from the outset may help the investor when tough decisions need to be made. Keeping cool under pressure is a trait shared by many successful investors. When the investor is focused on a plan or specific trading system, this can make things a bit easier when times get tough.

In taking a look at some other notable technicals, Evolution Petroleum Corporation (AMEX:EPM)’s ROIC is 0.301471. The ROIC 5 year average is 0.181533 and the ROIC Quality ratio is 4.111767. 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.

We also note that Evolution Petroleum Corporation (AMEX:EPM) has a Shareholder Yield of 0.049733 and a Shareholder Yield (Mebane Faber) of 0.05382. 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.

Evolution Petroleum Corporation (AMEX:EPM) has a current MF Rank of 1816. 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.

We can now take a quick look at some historical stock price index data. Evolution Petroleum Corporation (AMEX:EPM) presently has a 10 month price index of 0.78571. 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 0.88415, the 24 month is 0.93086, and the 36 month is 1.62920. Narrowing in a bit closer, the 5 month price index is 0.60173, the 3 month is 0.88535, and the 1 month is currently 0.93452.

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 Evolution Petroleum Corporation (AMEX:EPM) is 1.00000.  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 fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Trading the stock market can sometimes feel like a wild roller coaster ride. When stocks are soaring, investors may feel like they can’t lose. When markets are sinking, investors may feel like there is nothing that they can do. Individual investors may have experienced both ends of the spectrum. Sometimes, an investor may secure some winning trades right out of the gate. This may cause the individual to become overconfident in their ability. Markets have the ability to shoot down overconfidence very quickly. On the other side, investors may only experience losses right off the bat and become highly discouraged. Figuring out how to manage winners and losers can big a big help to the investor’s psyche in the long-term. Frequently assessing which trades worked and examining why they worked may greatly assist the investor. The same can be said for trades that did not pan out.