Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE), Maxwell Technologies, Inc. (NasdaqGS:MXWL) Quant Signal Evaluation & Review

Here we will take a look at several key ratios for Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the firm’s net asset value per share to it’s current price.  This is useful in determining how the market values the firm compared to it’s actual worth.  The Book to Market value of Aeglea BioTherapeutics, Inc. currently stands at 0.296347.

There are many factors that can affect the health of a certain firm. Because of this, it can be extremely difficult to find one single strategy that will prove successful in the share market. Investors are able to study all the different data, but figuring out the relevant information can be a struggle. There is plenty of firm information that can easily be measured such as revenue and profits. There are also elements that aren’t as easily computed such as reputation and competitive advantage. Finding a way to gather all the information and craft a strategy that incorporates all aspects of a firm may be a challenge for investors. Because there is a highly inherent human element to picking stocks, price action may not follow expectations. Human emotion can reverse course rapidly over a short timeframe of time. Investors must always be prepared for market uncertainty while attempting to keep emotions in check. 

In terms of EBITDA Yield, Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) currently has a value of -0.228771. This value is derived by dividing EBITDA by Enterprise Value.

Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) right now has a current ratio of 9.37. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply determined by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain firm to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the firm may be more capable of paying back its obligations.

The Price to book ratio is the current equity price of a firm divided by the book value per share.  The Price to Book ratio for Aeglea BioTherapeutics, Inc. NasdaqGM:AGLE is 3.374425.  A lower price to book ratio signals that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value.  The Price to Cash Flow for Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) is -6.961926.  This ratio is determined by dividing the market value of a firm by cash from operating activities.  Additionally, the price to earnings ratio is another faddish way for analysts and investors to determine a firm’s profitability.  The price to earnings ratio for Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) is -5.980208. This ratio is found by taking the current equity price and dividing by EPS.

Gazing at some ROIC (Return on Invested Capital) numbers, Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE)’s ROIC is -4.373841. The ROIC 5 year average is -5.475177 and the ROIC Quality ratio is -0.595864. 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. 

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 Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) is -0.229605.  Free cash flow (FCF) is the cash produced by the firm minus capital expenditure.  This cash is what a firm 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 useful mechanism 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 Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) is 0.567557.  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.

The Gross Margin Score is determined by studying at the Gross Margin and the overall stability of the firm 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 Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) is 50.00000.  The more stable the firm, the lower the score.  If a firm is less stable over the course of time, they will have a higher score.

At the time of writing, Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) has a Piotroski F-Score of 2. The F-Score may aid locate 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 firm 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.

Shifting gears, we can see that Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE) has a Q.i. Value of 84.00000. 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 aid identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the firm tends to be.

Watching some historical volatility numbers on shares of Aeglea BioTherapeutics, Inc. (NasdaqGM:AGLE), we can see that the 12 month volatility is right now 67.061100. The 6 month volatility is 68.425400, and the 3 month is spotted at 77.558000. Following volatility data can aid calculate how much the stock price has fluctuated over the specified time timeframe. Although past volatility action may aid 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 timeframe.

Traders often prefer to focus on stocks that are higher in volatility. Higher volatility brings more opportunity for quick profits, but it can also bring quick losses. Traders will typically try to discern recent stock activity in order to make the most out of the price action. Seeing how a certain stock has traded previously may allow traders to project which way shares will move in the near future. It is highly necessary for active traders to know the uncertainty involved with trying to capitalize on shorter-term price movements. Adept traders are generally able to focus on the bigger picture and not let one or two bad trades get them down. Developing confidence to trade in the share market may take substantial time and effort. Defining long term and short term goals to aid keep the focus intact may aid traders secure profits.

In trying to determine the current valuation of Maxwell Technologies, Inc. (NasdaqGS:MXWL) shares, we note that the Book to Market ratio of the shares stands at 0.494958. It’s commonly accepted that a Book to Market ratio greater than one signals that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is determined by dividing the market price per share by book value per share.

Making ones way through the equity markets can be highly challenging. Investors might be reviewing strategies to see what has worked and what hasn’t worked in the past. After studying the broader economic factors that impact equity markets, it may be time to focus in on specific stocks to add to the portfolio. Investors may examine different sectors first in order to think through where the majority of the growth potential lies. Doing all the required research on sectors can aid pinpoint where the next major trend will be forming. This study may not lead to exact findings, but it may provide a better framework with which to operate moving forward in the share market. Finding those big winners can take a lot of time and effort. Digging through the numbers may be cumbersome at times, but the rewards for sticking with it and placing in the work may pay off greatly down the line. Staying on top of economic news and the fundamentals of stocks in the portfolio on a consistent basis can aid the investor better traverse the often rocky terrain that is the share market.  

Maxwell Technologies, Inc. (NasdaqGS:MXWL) right now has a current ratio of 3.22. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply determined by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain firm to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the firm may be more capable of paying back its obligations.

Return on Assets

There are many different tools to determine whether a firm is profitable or not. One of the most faddish ratios is the “Return on Assets” (aka ROA). This score signals how profitable a firm is relative to its total assets. The Return on Assets for Maxwell Technologies, Inc. (NasdaqGS:MXWL) is -0.197057. This number is determined by dividing net income after tax by the firm’s total assets. A firm that manages their assets well will have a higher return, while a firm that manages their assets poorly will have a lower return.

Maxwell Technologies, Inc. (NasdaqGS:MXWL)’s Leverage Ratio was recently noted as 0.189578. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a firm is relative to the amount of debt on the balance sheet. This ratio is often viewed as one calculate of the financial health of a firm.

ERP5 Rank

The ERP5 Rank is an investment mechanism that analysts use to locate undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Maxwell Technologies, Inc. (NasdaqGS:MXWL) is 15166. The lower the ERP5 rank, the more undervalued a firm is thought to be.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is determined by taking the five year average free cash flow of a firm, and dividing it by the current enterprise value. Enterprise Value is determined by taking the market cap plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a firm is determined by studying at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of Maxwell Technologies, Inc. (NasdaqGS:MXWL) is -0.040466.

Ever wonder how investors predict positive equity price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for Maxwell Technologies, Inc. (NasdaqGS:MXWL) is currently 0.67767.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive equity price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

Magic Formula

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable firm trading at a good price. The formula is determined by studying at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of Maxwell Technologies, Inc. (NasdaqGS:MXWL) is 15532. A firm with a low rank is considered a good firm to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Stock volatility is a percentage that signals whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a firm has a low volatility percentage or not over the course of a year.  The Volatility 12m of Maxwell Technologies, Inc. (NasdaqGS:MXWL) is 54.606800.  This is determined by taking weekly log normal returns and standard deviation of the equity price over one year annualized.  The lower the number, a firm 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 equity price over 3 months.  The Volatility 3m of Maxwell Technologies, Inc. (NasdaqGS:MXWL) is 116.272200.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 93.767900.

Yield

After a recent scan, we can see that Maxwell Technologies, Inc. (NasdaqGS:MXWL) has a Shareholder Yield of -0.236412 and a Shareholder Yield (Mebane Faber) of -0.27217. The first value is determined 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 amount of financial information available to individual investors these days is staggering. Accumulating intelligence in the share market is much clearer to do than ever before. All the advances in technology have allowed regular investors to access information with relative ease. Making sense of all the various data can be overwhelming, but plowing through the data may create a solid foundation to start enhancing profits in the market. With so many investing options, traders and investors must construct a plan that works specifically for them. Becoming educated about the share market before tackling the beast might assist the individual investor in many ways. Studying how markets and prices move may aid the investor decide which way is the best way to go. Understanding the difficulties and possible pitfalls that investors generally fall prey to, can go a long way in helping even before the first trade is ever made. As most investors know, the markets and economic landscapes are constantly changing. This requires the investor to be in tip top mental shape in order to confront tough buy or sell decisions when the time comes.

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