Gold Resource Corporation (AMEX:GORO) By The Numbers: How Healthy Is This Stock? FCF Runs to -0.687692

The FCF Yield 5yr Average is determined by taking the five year average free cash flow of a enterprise, 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 enterprise is determined by studying at the cash generated by operations of the enterprise.  The Free Cash Flow Yield 5 Year Average of Gold Resource Corporation (AMEX:GORO) is 0.019722. 

Investors may be intent on creating unique strategies when approaching the equity markets. Individuals with longer-term mindsets may have completely different strategies than those who trade in the short-term. Whatever class they fall under, investors may have to decide how aggressive they want to be in order to capitalize on these strategies. Navigating the bull market may make things a bit simpler for some and much harder for others. Many investors will set their sights on dips and corrections. This may prove to be a successful strategy, but this may also create many missed opportunities. Keeping track of key economic data along with market trends and earnings information typically seems to be a boon to any strategy. Highly active traders may keep close watch after the markets have a sleepy session or two. Investors staying the course might actually be relieved when activity cools a bit. 

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 Gold Resource Corporation (AMEX:GORO) is 5.  A score of nine illustrates a high value stock, while a score of one illustrates 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 MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable enterprise 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 Gold Resource Corporation (AMEX:GORO) is 2607.  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”.

Shifting gears, we can see that Gold Resource Corporation (AMEX:GORO) has a Q.i. Value of 22.00000. 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 enterprise tends to be.

Checking in on some valuation rankings, Gold Resource Corporation (AMEX:GORO) has a Value Composite score of 37. 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 enterprise with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued enterprise. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 45.

Watching some historical volatility numbers on shares of Gold Resource Corporation (AMEX:GORO), we can see that the 12 month volatility is currently 48.556000. The 6 month volatility is 50.198000, and the 3 month is spotted at 42.194300. Following volatility data can aid add up how much the stock price has fluctuated over the specified time course. 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 course. 

The C-Score is a system developed by James Montier that helps determine whether a enterprise is involved in falsifying their financial statements.  The C-Score is determined by a mixture 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 Gold Resource Corporation (AMEX:GORO) is 3.00000.  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 illustrates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a enterprise cheating in the books.

Shareholder Yield, Shareholder Yield (Mebane Faber)

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a enterprise through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Gold Resource Corporation (AMEX:GORO) is -0.008796. This percentage is determined 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 enterprise’s distributions is by studying at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Gold Resource Corporation AMEX:GORO is -0.01502. This number is determined by studying at the sum of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

Valuation

The Price to book ratio is the current stock price of a enterprise divided by the book value per share. The Price to Book ratio for Gold Resource Corporation AMEX:GORO is 2.162634. A lower price to book ratio illustrates that the stock might be undervalued. Similarly, Price to cash flow ratio is another useful ratio in determining a enterprise’s value. The Price to Cash Flow for Gold Resource Corporation (AMEX:GORO) is 8.005048. This ratio is determined by dividing the market value of a enterprise by cash from operating activities. Additionally, the price to earnings ratio is another prime way for analysts and investors to determine a enterprise’s profitability. The price to earnings ratio for Gold Resource Corporation (AMEX:GORO) is 95.605056. This ratio is found by taking the current stock price and dividing by EPS.

With most major indexes showing strength, it is safe to assume that many investors may have their heads in the clouds. With many stocks frequently hitting new milestone highs, investors may be scrambling to make sure that they aren’t missing out on possible returns. Maybe some stocks have been doing well, but others not in the portfolio have been doing much better. There is rarely any substitute for difficult work and dedication. Investors may get complacent with stocks that they are familiar with. Branching out into uncharted waters may aid broaden the horizon and start the gears grinding for new trading ideas. Traders and investors will no doubt be closely monitoring the markets as we move into the second half of the year. It remains to be seen whether optimism or pessimism will rule going in to the next round of quarterly earnings reporting.

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