Quant Scorecard Update and Review For Endeavour Silver Corp. (TSX:EDR), Orexo AB (publ) (OM:ORX)

Here we will take a look at the Gross Margin Score of Endeavour Silver Corp. (TSX:EDR) shares. The equity currently has a score of 37.00000. 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 37.00000 for Endeavour Silver Corp. signals a top score for stability and growth.

Trying to project the day to day short-term movements of the share market may be all but impossible. Stocks have the tendency to make sudden moves on even the slightest bit of news or for apparently no reason at all. The daily trader may be viewing to capitalize on swings or momentum, but the long-term investor may be searching for stability and consistency over a sustained stage of time. During trading sessions, stock movements can seem like a popularity contest sometimes. Even after careful study, there may be no logical reason for a particular stock move. Riding out the waves of uncertainty may not be easy, but having a full-proof plan for when markets erode may just be the savior. Having the patience to wait out abnormal moves may aid evade the mistake of letting go too soon out of panic. 

Checking in on some valuation rankings, Endeavour Silver Corp. (TSX:EDR) has a Value Composite score of 47. 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 53.

In trying to determine the current valuation of Endeavour Silver Corp. (TSX:EDR) shares, we note that the Book to Market ratio of the shares stands at 0.500841. It’s commonly accepted that a Book to Market ratio greater than one signals that the shares might be undervalued.  The book to market ratio has some limitations in certain industries however where intangible assets (such as knowledge) often are not represented on a balance sheet. The ratio is determined by dividing the market price per share by book value per share.  

At the time of writing, Endeavour Silver Corp. (TSX:EDR) has a Piotroski F-Score of 5. 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.

Endeavour Silver Corp. (TSX:EDR) has a current ERP5 Rank of 14347 . 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 viewing at the ERP5 ranking, it is generally considered the lower the value, the better.

Ever wonder how investors predict positive stock price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for Endeavour Silver Corp. (TSX:EDR) is currently 0.89889.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive stock price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

The Leverage Ratio of Endeavour Silver Corp. (TSX:EDR) is 0.000000.  Leverage ratio is the total debt of a firm divided by total assets of the current and past year divided by two.  Companies take on debt to finance their day to day operations.  The leverage ratio can sum how much of a firm’s capital comes from debt.  With this ratio, investors can better estimate how well a firm will be able to pay their long and short term financial obligations.

ROA & ROIC

There are many different tools to determine whether a firm is profitable or not.  One of the most leading ratios is the “Return on Assets” (aka ROA).  This score signals how profitable a firm is relative to its total assets.  The Return on Assets for Endeavour Silver Corp. (TSX:EDR) is -0.033739.  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.

The Return on Invested Capital (aka ROIC) for Endeavour Silver Corp. (TSX:EDR) is -0.084376.  The Return on Invested Capital is a ratio that determines whether a firm is profitable or not.  It tells investors how well a firm is turning their capital into profits.  The ROIC is determined by dividing the net operating profit (or EBIT) by the employed capital.  The employed capital is determined by subrating current liabilities from total assets.  Similarly, the Return on Invested Capital Quality ratio is a resource in evaluating the quality of a firm’s ROIC over the course of five years.  The ROIC Quality of Endeavour Silver Corp. (TSX:EDR) is 1.454684.  This is determined by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC.  The ROIC 5 year average is determined using the five year average EBIT, five year average (net working capital and net fixed assets).  The ROIC 5 year average of Endeavour Silver Corp. (TSX:EDR) is -0.206635.

Investors may be getting ready to buy into the share market as we cruise into the second half of the year. Filtering out the constant noise in the markets can be challenging. Sifting through all the data can be trying, especially for the beginner investor. Digging down into the fundamentals may aid weed out the undesirable companies. Investors will most likely be scouting out the equity market for any bargains. Although they may be harder to find these days, there still may be a hidden gem out there somewhere. As companies start to report quarterly earnings, investors will be closely following to see which ones are poised for success over the next few quarters.    

Investors having Orexo AB (publ) (OM:ORX) on their watchlists might want to take into consideration the Gross Margin Score of the firm. Orexo AB (publ) currently has a score of 10.00000. 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 10.00000 for Orexo AB (publ) signals a top score for stability and growth.

Investors are constantly viewing for ways to achieve success trading the share market. Veteran investors may have spent many years trying to understand 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 approaches that might have worked in the past, nobody can guarantee future results based on past approaches and performance. Investors may end up finding out the difficult way that there is rarely any substitute for difficult 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 Orexo AB (publ) (OM:ORX) is 7.  A score of nine signals a high value stock, while a score of one signals 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, Orexo AB (publ) (OM:ORX) has a Value Composite score of 52. 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 56.

At the time of writing, Orexo AB (publ) (OM:ORX) has a Piotroski F-Score of 7. 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.

Orexo AB (publ) (OM:ORX) has a current ERP5 Rank of 9949 . 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 viewing at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Orexo AB (publ) (OM:ORX) has a Q.i. Value of 26.00000. 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 signals 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 Orexo AB (publ) (OM:ORX) is 71.669000.  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 Orexo AB (publ) (OM:ORX) is 48.194700.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 72.583800.

We can now take a quick glimpse at some historical stock price index data. Orexo AB (publ) (OM:ORX) currently has a 10 month price index of 2.00258. The price index is determined by dividing the current stock price by the stock price ten months ago. A ratio over one signals an increase in stock price over the stage. A ratio lower than one shows that the price has decreased over that time stage. Gazing at some different time periods, the 12 month price index is 2.25872, the 24 month is 2.35455, and the 36 month is 1.74607. Narrowing in a bit closer, the 5 month price index is 1.06584, the 3 month is 1.27796, and the 1 month is currently 1.17018.

For many individual investors, deciding the proper time to sell a stock may be just as imperative as figuring out which stocks to buy at the outset. Investors may be reviewing the portfolio and viewing at some stocks that have taken off and made a big run to the upside. When this occurs, investors may must 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.

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