Sumitomo Osaka Cement Co., Ltd. (TSE:5232), Greene King plc (LSE:GNK) Valuation & Quant Returns In Focus

The price to earnings ratio for Sumitomo Osaka Cement Co., Ltd. (TSE:5232) is 18.771674. This ratio is found by taking the current share price and dividing by earnings per share. Further, Price to Book ratio for Sumitomo Osaka Cement Co., Ltd. TSE:5232 is 0.910368. A lower price to book ratio indicates that the stock might be undervalued.

Now we’ll turn to some key quant data and additional ratios. The Current Ratio of Sumitomo Osaka Cement Co., Ltd. (TSE:5232) is 1.19. 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.

Sumitomo Osaka Cement Co., Ltd. (TSE:5232)’s Leverage Ratio was recently noted as 0.193216. 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 Sumitomo Osaka Cement Co., Ltd. (TSE:5232) is 9.00000. 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, Sumitomo Osaka Cement Co., Ltd. (TSE:5232) has a Piotroski F-Score of 2. 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.

Sumitomo Osaka Cement Co., Ltd. (TSE:5232) has an M-score Beneish of -999.000000. 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 Sumitomo Osaka Cement Co., Ltd. (TSE:5232) is 24. 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 Sumitomo Osaka Cement Co., Ltd. (TSE:5232) is 16.

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 Sumitomo Osaka Cement Co., Ltd. (TSE:5232) 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 Sumitomo Osaka Cement Co., Ltd. (TSE:5232) has a Q.i. Value of 33.00000. 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.

At the time of writing, Sumitomo Osaka Cement Co., Ltd. (TSE:5232) has a Piotroski F-Score of 2. 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.

In conclusion, there are a number of signals that can be looked at in order to determine if a company will continue to grow earnings and if they are a good investment for a portfolio. Potential investors should do all due dilligence before making an investment decision.

Looking at some ROIC (Return on Invested Capital) numbers, Greene King plc (LSE:GNK)’s ROIC Quality Score is 10.429733. 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.  This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC.  The higher the ratio, the better as a higher score indicates a more stable return on invested capital.

Greene King plc (LSE:GNK) currently has a Montier C-score of 2.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

Earnings Yield

Checking in on some valuation rankings, Greene King plc (LSE:GNK) has a Value Composite score of 15. 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 10.

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 Greene King plc (LSE:GNK) is 1.780172. 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 Greene King plc (LSE:GNK) is 1.866744. 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 Greene King plc (LSE:GNK), we can see that the 12 month volatility is presently 32.069900. The 6 month volatility is 24.939300, and the 3 month is spotted at 23.374000. 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 Greene King plc (LSE:GNK) for last month was 1.07382. 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 Greene King plc (LSE:GNK) is 1.40909.
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 Greene King plc (LSE:GNK) over the past 52 weeks is 0.966000. The 52-week range can be found in the stock’s quote summary.

Quant Data
Shifting gears, we can see that Greene King plc (LSE:GNK) has a Q.i. Value of 18.00000. 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 Greene King plc (LSE:GNK) is 2.00000. 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.

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