Taking a Deep Dive into the Numbers & Valuation: Xebio Holdings Co., Ltd. (TSE:8281), Mitsubishi Corporation (TSE:8058)

Xebio Holdings Co., Ltd. (TSE:8281) boasts a Price to Book ratio of 0.449289. 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 , and a current Price to Earnings ratio of 110.575224. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Defining specific goals and creating an overall stock trading strategy can be a big help for the individual investor. Some investors are only interested in buy and hold strategies, while others will opt to try and capitalize on short-term market movements. Investors may also decide to do a little bit of both. They may choose a selection of stocks that they plan on holding for a long time, and they may choose others that they plan on holding for only a short period of time. Whichever way the investor decides to go, they should be prepared to complete all the research. Whether they want to study the fundamentals, technicals, or both, finding quality stocks may be at the forefront of the search.

Checking in on some valuation rankings, Xebio Holdings Co., Ltd. (TSE:8281) has a Value Composite score of 18. 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 13.

Xebio Holdings Co., Ltd. (TSE:8281) has a current MF Rank of 6928. 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.

Further, we can see that Xebio Holdings Co., Ltd. (TSE:8281) has a Shareholder Yield of 0.039965 and a Shareholder Yield (Mebane Faber) of 0.03616. 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.

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Xebio Holdings Co., Ltd. (TSE:8281) is 2.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of Xebio Holdings Co., Ltd. (TSE:8281). The name currently has a score of 2. 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.

Volatility/PI
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 Xebio Holdings Co., Ltd. (TSE:8281) is 26.4006.  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 Xebio Holdings Co., Ltd. (TSE:8281) is 19.3784.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 23.7645.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Xebio Holdings Co., Ltd. (TSE:8281) for last month was 1.05939. 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 Xebio Holdings Co., Ltd. (TSE:8281) is 0.75728.

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 Xebio Holdings Co., Ltd. (TSE:8281) is 0.002545.  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.

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.    

Mitsubishi Corporation (TSE:8058) has a Price to Book ratio of 0.766312. This ratio has been 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 5.645676, and a current Price to Earnings ratio of 7.723354. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

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.

Volatility/PI

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 Mitsubishi Corporation (TSE:8058) is 22.4936.  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 Mitsubishi Corporation (TSE:8058) is 18.4804.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 19.9714.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Mitsubishi Corporation (TSE:8058) for last month was 1.07498. 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 Mitsubishi Corporation (TSE:8058) is 0.81062.

Further, we can see that Mitsubishi Corporation (TSE:8058) has a Shareholder Yield of 0.051891 and a Shareholder Yield (Mebane Faber) of -0.34586. 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.

Checking in on some valuation rankings, Mitsubishi Corporation (TSE:8058) has a Value Composite score of 9. 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 6.

Mitsubishi Corporation (TSE:8058) has a current MF Rank of 9298. 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.

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 Mitsubishi Corporation (TSE:8058) is 0.033794.  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 Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a company’s stock is valuable or not.  The Piotroski F-Score of Mitsubishi Corporation (TSE:8058) is 5.  A score of nine indicates a high value stock, while a score of one indicates a low value stock.  The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue.  The score is also determined by change in gross margin and change in asset turnover.

Investors may be interested in viewing the Gross Margin score on shares of Mitsubishi Corporation (TSE:8058). The name currently has a score of 10. 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.

One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Leave a Reply

Your email address will not be published. Required fields are marked *

*