Is Parmalat S.p.A. (BIT:PLT) Worth a Look With an ERP5 of 8741?

Parmalat S.p.A. (BIT:PLT) has an ERP5 rank of 8741. The ERP5 Rank is an investment resource that analysts use to spot 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 enterprise 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 should look into 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 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 Parmalat S.p.A. (BIT:PLT) is 0.033094.

Technicals & Ratios

The EBITDA Yield is a great way to determine a enterprise’s profitability. This number is determined by dividing a enterprise’s earnings before interest, taxes, depreciation and amortization by the enterprise’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 Parmalat S.p.A. (BIT:PLT) is 0.065441.

The Earnings to Price yield of Parmalat S.p.A. (BIT:PLT) is 0.021339.  This is determined by taking the EPS and dividing it by the last closing equity price.  This is one of the most prime ways investors use to assess a enterprise’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 enterprise.  The Earnings Yield for Parmalat S.p.A. (BIT:PLT) is 0.032209.  

Earnings Yield helps investors add up the return on investment for a given enterprise.  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 Parmalat S.p.A. is 0.046602.

Q.i. Value

The Q.i. Value of Parmalat S.p.A. (BIT:PLT) is 34.00000. The Q.i. Value is another 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.

Quant Scores

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a enterprise has manipulated their earnings numbers or not. Parmalat S.p.A. (BIT:PLT) has an M-Score of -2.625603. 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 enterprise might be manipulating their numbers.

The Value Composite One (VC1) is a method that investors use to determine a enterprise’s value. The VC1 of Parmalat S.p.A. (BIT:PLT) is 40. 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 Parmalat S.p.A. (BIT:PLT) is 39.

Investors may be interested in viewing the Gross Margin score on shares of Parmalat S.p.A. (BIT:PLT). The name currently has a score of 9.00000. 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, Parmalat S.p.A. (BIT:PLT) has a Piotroski F-Score of 7. The F-Score may aid spot 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 enterprise 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.

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