Quant Investors Are Taking a Thorough Look at NCR Corporation (NYSE:NCR)

The ERP5 Rank is an investment mechanism that analysts use to bring to light undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of NCR Corporation (NYSE:NCR) is 7466.  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 must 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 viewing at the cash generated by operations of the enterprise. The Free Cash Flow Yield 5 Year Average of NCR Corporation (NYSE:NCR) is 0.068455.

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 NCR Corporation (NYSE:NCR) is 0.103318.

The Earnings to Price yield of NCR Corporation (NYSE:NCR) is -0.042842.  This is determined by taking the EPS and dividing it by the last closing equity price.  This is one of the most crowd-pleasing approaches investors use to appraise 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 NCR Corporation (NYSE:NCR) is 0.057737.  

Earnings Yield helps investors sum 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 NCR Corporation is 0.077737.

Q.i. Value

The Q.i. Value of NCR Corporation (NYSE:NCR) is 27.00000. The Q.i. Value is another useful mechanism 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. NCR Corporation (NYSE:NCR) has an M-Score of -2.852179. 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 NCR Corporation (NYSE:NCR) is 41. 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 NCR Corporation (NYSE:NCR) is 35.

Investors may be interested in viewing the Gross Margin score on shares of NCR Corporation (NYSE:NCR). The name currently has a score of 15.00000. 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, NCR Corporation (NYSE:NCR) has a Piotroski F-Score of 3. The F-Score may aid bring to light 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.

There are many traders who think that proper psychology is one of the most essential aspects of becoming successful in the share market. Traders may must 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 share 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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