Market Focus: Athabasca Oil Corporation (TSX:ATH), MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) Valuation Review & Update

The ERP5 Rank is an investment gadget 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 Athabasca Oil Corporation (TSX:ATH) is 12227.  The lower the ERP5 rank, the more undervalued a firm is thought to be.

When dealing with the equity market, investors may seek to make trades that will limit regret and create a sense of pride. frequently, investors may be challenged with trying to determine the proper time to sell winners or let go of losers. Of course, nobody wants to sell a winner if it looks like there may be more profits to be had. On the other hand, nobody wants to hold on to a loser for so long that severe losses pile up. Investors often must assess their own appetite for uncertainty. Some may be able to stomach large swings on a daily basis. Others may not be able to take the volatility when dealing with riskier investments. Uncertainty decisions may be made on past outcomes, and investors who have experienced previous profits and gains may be more likely to take a bigger uncertainty in the future. Those who have only seen substantial losses may be more uncertainty adverse in the future. 

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 considering at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of Athabasca Oil Corporation (TSX:ATH) is -0.422277.

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 Athabasca Oil Corporation (TSX:ATH) is 0.160652.

The Earnings to Price yield of Athabasca Oil Corporation (TSX:ATH) is -0.569342.  This is determined by taking the EPS and dividing it by the last closing stock price.  This is one of the most prime ways 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 Athabasca Oil Corporation (TSX:ATH) is -0.149337.  

Earnings Yield helps investors quantify 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 Athabasca Oil Corporation is -0.208950.

Q.i. Value

The Q.i. Value of Athabasca Oil Corporation (TSX:ATH) is 64.00000. 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. Athabasca Oil Corporation (TSX:ATH) has an M-Score of -3.407288. 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 Athabasca Oil Corporation (TSX:ATH) is 20. 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 Athabasca Oil Corporation (TSX:ATH) is 30.

Investors may be interested in viewing the Gross Margin score on shares of Athabasca Oil Corporation (TSX:ATH). The name currently has a score of 61.00000. 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, Athabasca Oil Corporation (TSX:ATH) has a Piotroski F-Score of 5. The F-Score may assist locate 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.

As we move into the second half of the year, investors may be focused on portfolio performance over the first part of the year. They may be trying to put all the pieces together in order to create a solid plan that will provide sustained profits, even if market conditions deteriorate. This may involve introducing more diversity into the portfolio. One investor may evaluate a stock completely different than another. It may be vital to do the imperative research on the overall industry when searching for the next big winner. As the next round of earnings reporting gets underway, investors will be watching to see which companies are positioned for growth over the foreseeable future. Investors will optimally have all their requisite boxes checked when scouting out the next portfolio moves.

MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) has an ERP5 rank of 2086. The ERP5 Rank is an investment gadget 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 lower the ERP5 rank, the more undervalued a firm is thought to be.

Investors may be trying to find stocks that are building momentum. Finding these stocks may assist bolster the portfolio going into the second half of the year. Investors often look to pounce on any opportunity in the equity market. Without properly being prepared, these opportunities may disappear quickly. Staying on top of fundamentals, technicals, and earnings, may assist investors remain prepared. 

Q.i. Value

The Q.i. Value of MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 24.00000. 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.

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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 0.140398.

The Earnings to Price yield of MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 0.106653.  This is determined by taking the EPS and dividing it by the last closing stock price.  This is one of the most prime ways 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 MasterCraft Boat Holdings, Inc. NasdaqGM:MCFT is 0.128133.  Earnings Yield helps investors quantify 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 MasterCraft Boat Holdings, Inc. is 0.071428.

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 considering at the cash generated by operations of the firm. The Free Cash Flow Yield 5 Year Average of MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 0.058158.

Price to book, Price to cash flow, Price to earnings

The Price to book ratio is the current stock price of a firm divided by the book value per share. The Price to Book ratio for MasterCraft Boat Holdings, Inc. NasdaqGM:MCFT is 6.619675. A lower price to book ratio reveals that the stock might be undervalued. Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value. The Price to Cash Flow for MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is . This ratio is determined by dividing the market value of a firm by cash from operating activities. Additionally, the price to earnings ratio is another prime way for analysts and investors to determine a firm’s profitability. The price to earnings ratio for MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 9.376207. This ratio is found by taking the current stock price and dividing by EPS.

Value Comp 1 / Value Comp 2

The Value Composite One (VC1) is a method that investors use to determine a firm’s value. The VC1 of MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 39. 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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 46.

Volatility 12 m, 6m, 3m

Stock volatility is a percentage that reveals 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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 47.659600. 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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 61.408300. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 55.172300.

MF Rank

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable firm 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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 428. A firm with a low rank is considered a good firm to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

Piotroski F-Score

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 MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 3. A score of nine reveals a high value stock, while a score of one reveals 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.

Return on Assets

There are many different tools to determine whether a firm is profitable or not. One of the most prime ratios is the “Return on Assets” (aka ROA). This score reveals how profitable a firm is relative to its total assets. The Return on Assets for MasterCraft Boat Holdings, Inc. (NasdaqGM:MCFT) is 0.432382. This number is determined by dividing net income after tax by the firm’s total assets. A firm that manages their assets well will have a higher return, while a firm that manages their assets poorly will have a lower return.

Many investors may strive to be in the equity market when the bulls are running and out of the market when the bears are in charge. Investors often use multiple strategies when setting up their portfolios. Some may rely solely on fundamental analysis, technical analysis, or a combination of both. Investing can be an extremely tough process. Individual investors often strive to gather and analyze vast amounts of information in order to make educated decisions. frequently, investors may have initial success in the equity market, and then things may turn sour. Confidence may be imperative to make the tougher decisions, but overconfidence may lead to an underperforming portfolio. Overconfidence may cause the investor to make poor decisions because they are relying too heavily on personal interpretations.

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