Bargain or Bust? What’s inside the Numbers For PrairieSky Royalty Ltd. (TSX:PSK)

After a recent scan, we can see that PrairieSky Royalty Ltd. (TSX:PSK) has a Shareholder Yield of 0.047739 and a Shareholder Yield (Mebane Faber) of 0.04881. 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.

Investors will be trying to gauge which way equity market momentum will shift as we head into the close of the calendar year. Some may be of the mindset that the bears will be taking over shortly. Others may be super bullish and ready for the market to make a further run higher. Trying to predict which way the tide will shift is no easy task. Being prepared for any situation that arises is a god way to combat the uncertainty that always follows the market. Being prepared can assist the investor make quick, tough decisions when the time comes. Many investors may have already figured out that holding onto losers for too long can be damaging for the portfolio. They may have also realized that holding onto winners too long can also have negative effects. Finding that perfect buy/sell balance can end up being the difference between a good portfolio and a great one.

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 PrairieSky Royalty Ltd. (TSX:PSK) is -0.169767.  Free cash flow (FCF) is the cash produced by the enterprise minus capital expenditure.  This cash is what a enterprise 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 resource 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 PrairieSky Royalty Ltd. (TSX:PSK) is -0.451920.  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 considering at the Gross Margin and the overall stability of the enterprise 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 PrairieSky Royalty Ltd. (TSX:PSK) is 57.00000.  The more stable the enterprise, the lower the score.  If a enterprise is less stable over the course of time, they will have a higher score.

Valuation Scores
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a enterprise’s stock is valuable or not.  The Piotroski F-Score of PrairieSky Royalty Ltd. (TSX:PSK) is 7.  A score of nine implies a high value stock, while a score of one implies a low value stock.  The score is determined by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings.  It is also determined 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.

The ERP5 Rank is an investment resource 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 PrairieSky Royalty Ltd. (TSX:PSK) is 19181.  The lower the ERP5 rank, the more undervalued a enterprise is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable enterprise trading at a good price.  The formula is determined by considering at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of PrairieSky Royalty Ltd. (TSX:PSK) is 9163.  A enterprise with a low rank is considered a good enterprise to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Q.i. Value of PrairieSky Royalty Ltd. (TSX:PSK) is 43.00000.  The Q.i. Value is a useful resource in determining if a enterprise is undervalued or not.  The Q.i. Value is determined using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the enterprise is thought to be.

Price Index
The Price Index is a ratio that implies the return of a equity price over a past duration. The price index of PrairieSky Royalty Ltd. (TSX:PSK) for last month was 1.08941. This is determined by taking the current equity price and dividing by the equity 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 equity price over 12 month periods. The Price Index 12m for PrairieSky Royalty Ltd. (TSX:PSK) is 0.60592. Some of the best financial predictions are formed by using a variation 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 PrairieSky Royalty Ltd. (TSX:PSK) over the past 52 weeks is 0.582000.  The 52-week range can be found in the stock’s quote summary.

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 PrairieSky Royalty Ltd. (TSX:PSK) is currently 0.75103.  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.

The Value Composite One (VC1) is a method that investors use to determine a enterprise’s value.  The VC1 of PrairieSky Royalty Ltd. (TSX:PSK) is 56.  A enterprise with a value of 0 is thought to be an undervalued enterprise, while a enterprise with a value of 100 is considered an overvalued enterprise.  The VC1 is determined 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 determined with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of PrairieSky Royalty Ltd. (TSX:PSK) is 45.

As many veteran investors have already seen, market movements are extremely difficult to accurately predict. Financial news outlets are always producing headlines and offering predictions for future market performance. Sometimes the predictions are right, and sometimes the predictions are wrong. Investors may have a difficult time separating fact from fiction when it comes to bullish and bearish sentiment. Adjusting the portfolio based strictly on headlines can be tempting for the amateur investor. Filtering out the noise and focusing on the pertinent data can assist keep the individual focused and on track. Straying from the plan and basing investment decisions on news headlines may lead to portfolio confusion down the road. Crunching the numbers and paying attention to the meaningful economic data can greatly assist the investor see through the smoke when markets get muddled.

PrairieSky Royalty Ltd. (TSX:PSK) has a Price to Book ratio of 1.677209. This ratio is determined by dividing the current equity 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 enterprise has a Price to Cash Flow ratio of 17.693010, and a current Price to Earnings ratio of 38.821557. The P/E ratio is one of the most common ratios used for figuring out whether a enterprise is overvalued or undervalued.

As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be considering to develop a equity market strategy with a bit less exposure involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more exposure. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can assist the investor gauge their exposure tolerance in the markets.

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