Marketcast: Is Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) Fairly Valued With a PCF of 33.711031?

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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft WBAG:SBO is 3.179345.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 33.711031.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 17.528510. This ratio is found by taking the current share price and dividing by earnings per share.

When dealing with the stock market, investors may seek to make trades that will limit regret and create a sense of pride. Often times, investors may be challenged with trying to figure out the proper time to sell winners or let go of losers. Of course, nobody wants to sell a winner if it looks like there may be more profits to be had. On the other hand, nobody wants to hold on to a loser for so long that severe losses pile up. Investors often need to assess their own appetite for risk. Some may be able to stomach large swings on a daily basis. Others may not be able to take the volatility when dealing with riskier investments. Risk decisions may be made on past outcomes, and investors who have experienced previous profits and gains may be more likely to take a bigger risk in the future. Those who have only seen substantial losses may be more risk adverse in the future. 

Watching some historical volatility numbers on shares of Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO), we can see that the 12 month volatility is presently 41.905900. The 6 month volatility is 47.758300, and the 3 month is spotted at 43.903500. 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. Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) presently has a 10 month price index of 0.66573. 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 0.80947, the 24 month is 1.07324, and the 36 month is 1.34063. Narrowing in a bit closer, the 5 month price index is 0.82907, the 3 month is 1.20439, and the 1 month is currently 1.04392.

Valuation Ratios

Looking at some ROIC (Return on Invested Capital) numbers, Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO)’s ROIC is 0.171505. The ROIC 5 year average is 0.102650 and the ROIC Quality ratio is 1.449836. 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, Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) currently has a value of 0.081630. 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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) has a price to book ratio of 3.179345.

As we move into the second half of the year, investors may be focused on portfolio performance over the first part of the year. They may be trying to put all the pieces together in order to create a solid plan that will provide sustained profits, even if market conditions deteriorate. This may involve introducing more diversity into the portfolio. One investor may evaluate a stock completely different than another. It may be important to do the necessary research on the overall industry when searching for the next big winner. As the next round of earnings reporting gets underway, investors will be watching to see which companies are positioned for growth over the foreseeable future. Investors will optimally have all their requisite boxes checked when scouting out the next portfolio moves.

The Leverage Ratio of Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 0.405912. 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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 0.085546.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 49.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 46.

Traders may be looking to capitalize on market trends as we move into the second part of the calendar year. Closely following the technicals might help make sense of current market conditions. Investors may choose to follow many different technical signals, or they may have picked a few popular ones to dedicate themselves to. Whatever the strategy, staying in tune with fundamentals and meaningful economic data may also prove to be highly beneficial. Coming at the equity market from multiple angles may help supply the investor with alternate perspectives that could play a vital role in the next couple of quarters. 

At the time of writing, Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) 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.

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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft WBAG:SBO is 3.179345.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 33.711031.  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 Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (WBAG:SBO) is 17.528510. This ratio is found by taking the current share price and dividing by earnings per share.

As investors survey the stock market, they will often look to make the smartest possible decisions when purchasing company shares. Individual investors may have to do a lot more work if they choose to manage their own stock portfolios. Serious investors often review every bit of information that they can get their hands on in order to develop even the slightest edge. Markets have the ability to move substantially in either direction with little or no notice. Investors who prepare themselves to battle the unknown may be able to better ride out stormy stock market conditions when they arise.