Investor Toolbox: A Look at ERP5 For MedEquities Realty Trust, Inc. (NYSE:MRT)

MedEquities Realty Trust, Inc. (NYSE:MRT) has an ERP5 rank of 19194. The ERP5 Rank is an investment gadget that analysts use to uncover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the ERP5 rank, the more undervalued a firm is thought to be.

At some point, individual investors may find themselves routinely falling prey to the lure of performance chasing. It can be highly tempting to want to be a part of a near-term stock run to the upside. Short-term investors may only be interested in these types of moves, but longer-term investors may want to be a bit more cautious. Chasing performance may end up leading the investor away from previously defined goals and the overall strategy. Investors who are committed to achieving long-term success may occasionally are required to reshuffle the deck when the short-term clatter becomes too noisy.

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 viewing at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of MedEquities Realty Trust, Inc. (NYSE:MRT) is .

Technicals & Ratios

The EBITDA Yield is a great way to determine a firm’s profitability. This number is determined by dividing a firm’s earnings before interest, taxes, depreciation and amortization by the firm’s 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 EBITDA Yield for MedEquities Realty Trust, Inc. (NYSE:MRT) is 0.074706.

The Earnings to Price yield of MedEquities Realty Trust, Inc. (NYSE:MRT) is 0.034775.  This is determined by taking the EPS and dividing it by the last closing stock price.  This is one of the most prime techniques investors use to check a firm’s financial performance.  Earnings Yield is determined by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the firm.  The Earnings Yield for MedEquities Realty Trust, Inc. (NYSE:MRT) is 0.043715.  

Earnings Yield helps investors sum the return on investment for a given firm.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for MedEquities Realty Trust, Inc. is .

Q.i. Value

The Q.i. Value of MedEquities Realty Trust, Inc. (NYSE:MRT) is 36.00000. The Q.i. Value is another useful gadget in determining if a firm 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 firm is thought to be.

Quant Scores

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a firm has manipulated their earnings numbers or not. MedEquities Realty Trust, Inc. (NYSE:MRT) has an M-Score of -2.782172. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the firm might be manipulating their numbers.

The Value Composite One (VC1) is a method that investors use to determine a firm’s value. The VC1 of MedEquities Realty Trust, Inc. (NYSE:MRT) is 41. A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm. 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 MedEquities Realty Trust, Inc. (NYSE:MRT) is 30.

Investors may be interested in viewing the Gross Margin score on shares of MedEquities Realty Trust, Inc. (NYSE:MRT). The name currently has a score of 50.00000. 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.

At the time of writing, MedEquities Realty Trust, Inc. (NYSE:MRT) has a Piotroski F-Score of 4. The F-Score may aid uncover 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.

There are many traders who think that proper psychology is one of the most meaningful aspects of becoming successful in the equity market. Traders may are required to learn how to become confident while overcoming certain fears and dealing with extreme ups and downs. This may not be easy as individuals all draw off of prior experiences at some level. Being able to convert outside success to the equity market may take some work. Traders who are able to overcome previous bias may be on the right path for having the proper mindset when entering the market.

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