Watching The Gross Margin Score on Applied Optoelectronics, Inc. (NasdaqGM:AAOI), Spartan Motors, Inc. (NasdaqGS:SPAR)

Investors may be interested in viewing the Gross Margin score on shares of Applied Optoelectronics, Inc. (NasdaqGM:AAOI). The name currently has a score of 28.00000. 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 28.00000 for Applied Optoelectronics, Inc. illustrates a top score for stability and growth.

Investors are constantly considering for ways to achieve success trading the equity 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 modes that might have worked in the past, nobody can guarantee future results based on past modes 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 enterprise’s stock is valuable or not.  The Piotroski F-Score of Applied Optoelectronics, Inc. (NasdaqGM:AAOI) is 1.  A score of nine illustrates a high value stock, while a score of one illustrates 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, Applied Optoelectronics, Inc. (NasdaqGM:AAOI) has a Value Composite score of 30. 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 enterprise with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued enterprise. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 40.

At the time of writing, Applied Optoelectronics, Inc. (NasdaqGM:AAOI) has a Piotroski F-Score of 1. The F-Score may assist detect 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.

Applied Optoelectronics, Inc. (NasdaqGM:AAOI) has a current ERP5 Rank of 7021 . 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 considering at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Applied Optoelectronics, Inc. (NasdaqGM:AAOI) 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 assist identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the enterprise tends to be.

PI & Volatility

Stock volatility is a percentage that illustrates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a enterprise has a low volatility percentage or not over the course of a year.  The Volatility 12m of Applied Optoelectronics, Inc. (NasdaqGM:AAOI) is 66.100600.  This is determined by taking weekly log normal returns and standard deviation of the equity price over one year annualized.  The lower the number, a enterprise 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 equity price over 3 months.  The Volatility 3m of Applied Optoelectronics, Inc. (NasdaqGM:AAOI) is 57.509200.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 64.118300.

We can now take a quick gander at some historical stock price index data. Applied Optoelectronics, Inc. (NasdaqGM:AAOI) at present has a 10 month price index of 0.48559. The price index is determined by dividing the current equity price by the equity price ten months ago. A ratio over one illustrates an increase in equity price over the duration. A ratio lower than one shows that the price has decreased over that time duration. Studying at some other time periods, the 12 month price index is 0.49678, the 24 month is 0.43219, and the 36 month is 0.91740. Narrowing in a bit closer, the 5 month price index is 0.43386, the 3 month is 0.72718, and the 1 month is currently 0.91912.

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

Investors considering positions in Spartan Motors, Inc. (NasdaqGS:SPAR), might be interested in the Gross Margin Score of the enterprise. The shares currently have a score of 19.00000. 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 19.00000 for Spartan Motors, Inc. illustrates a top score for stability and growth.

Investors may be considering into the crystal ball trying to calculate where the equity market will be shifting as we move into the second half of the year. Investors may be difficult pressed to find bargains with the markets still riding high. Sometimes, keeping it simple may be explicitly what the doctor ordered when approaching the markets. Focusing on relevant data instead of information that breezes through may make a huge difference for the individual investor. Focusing on companies that have strong competitive advantages may assist fight off unwelcome surprises that often come with uncertain economic landscapes. Focusing on the long-term might be right for some investors. Developing a good safety margin may also assist keep the paramount investing factors in focus. Covering all the bases may assist increase the odds of success when trading equities.

At the time of writing, Spartan Motors, Inc. (NasdaqGS:SPAR) has a Piotroski F-Score of 4. The F-Score may assist detect 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.

Spartan Motors, Inc. (NasdaqGS:SPAR) has a current ERP5 Rank of 7448 . 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 considering at the ERP5 ranking, it is generally considered the lower the value, the better.

Shifting gears, we can see that Spartan Motors, Inc. (NasdaqGS:SPAR) has a Q.i. Value of 36.00000. 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 assist identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the enterprise tends to be.

Checking in on some valuation rankings, Spartan Motors, Inc. (NasdaqGS:SPAR) has a Value Composite score of 30. 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 enterprise with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued enterprise. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 28.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Spartan Motors, Inc. (NasdaqGS:SPAR) is -1.000000.  Free cash flow (FCF) is the cash produced by the enterprise minus capital expenditure.  This cash is what a enterprise uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a useful mechanism in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Spartan Motors, Inc. (NasdaqGS:SPAR) is -0.333353.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Price Index

The Price Index is a ratio that illustrates the return of a equity price over a past duration. The price index of Spartan Motors, Inc. (NasdaqGS:SPAR) for last month was 1.00979. This is determined by taking the current equity price and dividing by the equity 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 equity price over 12 month periods. The Price Index 12m for Spartan Motors, Inc. (NasdaqGS:SPAR) is 0.54221.
Price Range 52 Weeks

Some of the best financial predictions are formed by using a variation 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 Spartan Motors, Inc. (NasdaqGS:SPAR) over the past 52 weeks is 0.448000. The 52-week range can be found in the stock’s quote summary.

C Score (Montier)

The C-Score is a system developed by James Montier that helps determine whether a enterprise is involved in falsifying their financial statements. The C-Score is determined by a variation of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Spartan Motors, Inc. (NasdaqGS:SPAR) is -1.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 illustrates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a enterprise cheating in the books.

Investors often have to decide how aggressive they are going to be in the equity market. Having the mindset of getting rich quick may result in the rapid loss of capital. Of course, there are those who have possibly had luck on their side, but jumping in head first without a plan can be a recipe for disaster. It may be tempting to take a leap with a risky stock. However, high returns in the equity market may come with extensive exposure and volatility. Managing that exposure in turbulent markets may assist keep the average investor above water when things swing the wrong way. Investors may want to assess if they are trading too much or trading the wrong types of stocks. Doing all the research may involve keeping a close tab on technicals, fundamentals, relevant economic data, and earnings reports. Investors may have to find a way to keep the rational side from being consumed by irrational behavior when analyzing the markets.

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