Quant Scorecard & ROE in Focus For Dart Mining NL (ASX:DTM), Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE)

In reviewing some key ratios and quant data for Dart Mining NL (ASX:DTM), we note that the mother of all ratios (Return on Equity) stands at -0.303188 for the firm.  ROE reveals what percentage of each investment dollar is returned as a profit.  Used in conjunction with a variety of other ratios, this indicator is a very important tool for investors in determining the effectiveness of a company to generate returns for investors.

Investors might be looking to rebuild the portfolio as we move into the second half of the year. New investors can be tempted to try to maximize returns by owning one specific sector or be exposed to a fairly large single investment. By diversifying the portfolio, investors might be able to protect themselves from a sudden move against the position. Finding the correct portfolio balance is how many investors choose to approach the markets. This may take some time to master, and there may be some bumps along the way. Investors managing their own money may want to make sure that they know exactly what stocks are in the portfolio at all times. Keeping tabs on portfolio performance can also be a good way to make sure that it is weighted properly.

Further, we can look at some other ratios and financial indicators in order to get an idea of the company’s valuation.  Dart Mining NL (ASX:DTM) presently has a current ratio of 2.08. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Dart Mining NL (ASX:DTM) is -0.315629. 

One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Dart Mining NL (ASX:DTM) is -0.278231.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Dart Mining NL (ASX:DTM) has an M-Score of 5.919038.  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 company might be manipulating their numbers.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Dart Mining NL (ASX:DTM) is 83.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated 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 calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Dart Mining NL (ASX:DTM) is 88.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Dart Mining NL (ASX:DTM) is 16641.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Earnings to Price yield of Dart Mining NL ASX:DTM is -0.409252.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for Dart Mining NL ASX:DTM is -0.396127.  Earnings Yield helps investors measure the return on investment for a given company.  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 Dart Mining NL (ASX:DTM) is -0.267993.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Dart Mining NL (ASX:DTM) for last month was 1.00000. This is calculated by taking the current share price and dividing by the share 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 share price over 12 month periods. The Price Index 12m for Dart Mining NL (ASX:DTM) is 1.03704.

Price Range 52 Weeks

Some of the best financial predictions are formed by using a variety 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 Dart Mining NL (ASX:DTM) over the past 52 weeks is 0.605000. The 52-week range can be found in the stock’s quote summary.

With the stock market continuing to move higher, investors may be searching for stocks that are still fairly undervalued. This may involve doing a little bit more homework than usual. Spotting those names that have been cast aside and not garnering much recent attention might be a good place to start. Putting in a few extra hours of stock research may provide some good options for buying on the next big dip. Of course, nobody can say for sure how long the markets will continue to climb. Being ready for a pullback can help if investors already have some names in mind that they are looking to scoop up when they fall to a certain level. Tracking the technicals and staying up on the fundamentals should help investors hone in on the next wave of stocks to add to the portfolio.

Today we are spotlighting shares of Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) and looking at how the firm stacks up in terms of valuation by the numbers.  One of the most important ratios to look at when weighing an investment decision is the Return on Equity of the company.  At the time of writing Dover Downs Gaming & Entertainment, Inc. has an ROE of -0.010778. With ROE, Investors can see if they’re getting a good return on their money, while a company can evaluate how efficiently they’re utilizing shareholder’s equity.

Investors have many things to keep an eye on when trading the equity market. Riding through the ups and downs that come with market volatility may take some getting used to for beginners. Even if the investor does all the proper research and stock homework, things may not go as planned. One of the more important aspects of securing long-term success in the markets is learning how to execute a well-planned strategy all the way through to completion. Finding that right stocks to add to the portfolio may take some time and effort, but it can be accomplished. Deciding on the proper time to sell can be the trickiest part. Many investors will have the tendency to panic when markets are suffering. Although market panic may be fairly normal, it can have longer lasting adverse effects on the stock portfolio. 

Drilling down into some additional metrics, we note that Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) has a Price to Book ratio of 0.740786. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 10.346267, and a current Price to Earnings ratio of -68.731178. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

After a recent scan, we can see that Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) has a Shareholder Yield of -0.003921 and a Shareholder Yield (Mebane Faber) of 0.05521. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

The Return on Invested Capital (aka ROIC) for Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) is 0.007976.  The Return on Invested Capital is a ratio that determines whether a company is profitable or not.  It tells investors how well a company is turning their capital into profits.  The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is calculated by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years.  The ROIC Quality of Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) is 9.389057.  This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) is 0.013269.

The Earnings to Price yield of Dover Downs Gaming & Entertainment, Inc. NYSE:DDE is -0.014549.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for Dover Downs Gaming & Entertainment, Inc. NYSE:DDE is 0.010540.  Earnings Yield helps investors measure the return on investment for a given company.  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 Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) is 0.019473.

Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) currently has a Montier C-score of 2.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

At the time of writing, Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) has a Piotroski F-Score of 6. The F-Score may help discover 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 company 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.

Shifting gears, we can see that Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE) has a Q.i. Value of 43.00000. 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 help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Volatility

Watching some historical volatility numbers on shares of Dover Downs Gaming & Entertainment, Inc. (NYSE:DDE), we can see that the 12 month volatility is presently 71.508200. The 6 month volatility is 73.213100, and the 3 month is spotted at 40.545100. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

When it comes to investing in the stock market, there are many different styles and strategies that can be used. Some investors will want to do all the work themselves to try to adopt a specific plan all their own. Others will attempt to replicate strategies that have worked for others in the past. Of course, there is no sure bet strategy that will produce instant investing success. Taking the time to study all the different investing methods may be useful for some, but not as helpful for others. What worked in the past may not work again in the future. Investors will often need to decide how much risk they are willing to take on when investing in stocks. Once the risk appetite is figured out, they may want to decide how much and how aggressive they want to invest. 

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