Investor Toolbox: A look at Margin Scores For Patriot One Technologies Inc. (TSXV:PAT), Paladin Energy Limited (ASX:PDN)

Investors may be interested in viewing the Gross Margin score on shares of Patriot One Technologies Inc. (TSXV:PAT). 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.  The low score of 50.00000 for Patriot One Technologies Inc. suggests a top score for stability and growth.

Investors are constantly gazing for ways to achieve success trading the share market. Veteran investors may have spent many years trying to think through the best way to build a winning stock portfolio. Unfortunately, there is no secret formula to beating the market. New investors may start trading with some preconceived notions about how to make money in stocks. Although there are some techniques that might have worked in the past, nobody can guarantee future results based on past techniques and performance. Investors may end up finding out the crucial way that there is rarely any substitute for crucial work and dedication, especially when picking stocks. 

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength.  The score helps determine if a firm’s stock is valuable or not.  The Piotroski F-Score of Patriot One Technologies Inc. (TSXV:PAT) is 1.  A score of nine suggests a high value stock, while a score of one suggests 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.

Turning to valuation, Patriot One Technologies Inc. (TSXV:PAT) has a Value Composite score of 78. 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 firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 84.

At the time of writing, Patriot One Technologies Inc. (TSXV:PAT) has a Piotroski F-Score of 1. The F-Score may aid uncloak 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.

Patriot One Technologies Inc. (TSXV:PAT) has a current ERP5 Rank of 19194 . The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When gazing at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Patriot One Technologies Inc. (TSXV:PAT) has a Q.i. Value of 70.00000. 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.

PI & Volatility

Stock volatility is a percentage that suggests 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 Patriot One Technologies Inc. (TSXV:PAT) is 75.465600.  This is determined by taking weekly log normal returns and standard deviation of the stock 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 stock price over 3 months.  The Volatility 3m of Patriot One Technologies Inc. (TSXV:PAT) is 79.177100.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 79.679900.

We can now take a quick peek at some historical stock price index data. Patriot One Technologies Inc. (TSXV:PAT) right now has a 10 month price index of 1.30460. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one suggests an increase in stock price over the stage. A ratio lower than one shows that the price has decreased over that time stage. Surveying at some different time periods, the 12 month price index is 1.18229, the 24 month is 1.66912, and the 36 month is 1.71970. Narrowing in a bit closer, the 5 month price index is 1.38415, the 3 month is 0.86641, and the 1 month is currently 1.16410.

For many individual investors, deciding the proper time to sell a stock may be just as meaningful as figuring out which stocks to buy at the outset. Investors may be reviewing the portfolio and gazing at some stocks that have taken off and made a big run to the upside. When this occurs, investors may should look into make the tough decision of whether to take some profits or hold out for further gains. Because every scenario is different, investors may want to dig a little deeper into the fundamentals before making a decision. If the stock’s fundamentals have weakened, it might be time to reassess the position.

Investors considering positions in Paladin Energy Limited (ASX:PDN), might be interested in the Gross Margin Score of the firm. The shares currently have a score of 68.00000. 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.  The low score of 68.00000 for Paladin Energy Limited suggests a top score for stability and growth.

Investors may be gazing into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be crucial pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be explicitly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may aid fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also aid keep the meaningful investing factors in focus. Covering all the bases may aid increase the odds of success when trading equities.

At the time of writing, Paladin Energy Limited (ASX:PDN) has a Piotroski F-Score of 6. The F-Score may aid uncloak 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.

Paladin Energy Limited (ASX:PDN) has a current ERP5 Rank of 14526 . The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When gazing at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Paladin Energy Limited (ASX:PDN) has a Q.i. Value of 88.00000. 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.

Checking in on some valuation rankings, Paladin Energy Limited (ASX:PDN) has a Value Composite score of 54. 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 firm with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued firm. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 52.

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 Paladin Energy Limited (ASX:PDN) is -11.917687.  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 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 Paladin Energy Limited (ASX:PDN) is -7.356921.  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.

Price Index

The Price Index is a ratio that suggests the return of a stock price over a past stage. The price index of Paladin Energy Limited (ASX:PDN) for last month was 1.08571. This is determined by taking the current stock price and dividing by the stock 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 stock price over 12 month periods. The Price Index 12m for Paladin Energy Limited (ASX:PDN) is 0.97436.
Price Range 52 Weeks

Some of the best financial predictions are formed by using a array 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 Paladin Energy Limited (ASX:PDN) over the past 52 weeks is 0.864000. The 52-week range can be found in the stock’s quote summary.

C Score (Montier)

The C-Score is a system developed by James Montier that helps determine whether a firm is involved in falsifying their financial statements. The C-Score is determined by a array 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 Paladin Energy Limited (ASX:PDN) is 2.00000. 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 suggests a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a firm cheating in the books.

Investors often have to decide how aggressive they are going to be in the share market. Having the mindset of getting rich quick may result in the rapid loss of capital. Of course, there are those who have possibly had luck on their side, but jumping in head first without a plan can be a recipe for disaster. It may be tempting to take a leap with a risky stock. However, high returns in the equity market may come with extensive exposure and volatility. Managing that exposure in turbulent markets may aid keep the average investor above water when things swing the wrong way. Investors may want to assess if they are trading too much or trading the wrong types of stocks. Doing all the research may involve keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when analyzing the markets.

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