Date: Aug 21, 2018
Australian Vanadium Limited (ASX:AVL) has a current MF Rank of 12612. 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.
Making the tough buy or sell portfolio decisions is a typical challenge that most investors will eventually face. Trying to separate fact from emotion when making these decisions can be hard. It may be very difficult to part ways with a previously prized stock. Investors may have a checklist that includes certain criteria for portfolio evaluation purposes. When certain stocks no longer meet the guidelines, they may need to be cut loose. This is often easier said than done, especially when a stock has provided a large boost to the portfolio in the past. Investors who are able to successfully keep emotional attachment out of the stock picking process may give themselves a leg up compared to those who are not.
Checking in on some valuation rankings, Australian Vanadium Limited (ASX:AVL) has a Value Composite score of 82. 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 86.
Australian Vanadium Limited (ASX:AVL) has a Price to Book ratio of 4.453713. 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 -63.345713, and a current Price to Earnings ratio of -65.654036. 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 Australian Vanadium Limited (ASX:AVL) has a Q.i. Value of 65. 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 Australian Vanadium Limited (ASX:AVL), we can see that the 12 month volatility is presently 82.9443. The 6 month volatility is 86.531, and the 3 month is spotted at 77.7256. 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, Australian Vanadium Limited (ASX:AVL) has a Piotroski F-Score of 1. 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 Australian Vanadium Limited (ASX:AVL). The name currently has a score of 6. 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 Australian Vanadium Limited (ASX:AVL) is -0.199257. 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 Australian Vanadium Limited ASX:AVL is -0.22676. This number is calculated by looking at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
