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 Regis Healthcare Limited (ASX:REG) is 0.011592.
Investors may be trying to decide if the current market environment remains bullish. It can be extremely difficult to decide when to sell, especially when data seems positive and most signs are pointing higher. Jumping in to buy stocks on a pullback may seem like a good idea, but following specific sectors may become increasingly more important. Following long-term trends may help the investor see the bigger picture of what has been going on with a specific stock or sector. Deciding to sell a winner after a big run can be tempting, but knowing the underlying causes for the run may help identify if there may indeed be more room for gains. Avoiding common investing pitfalls may take many years to master, but it may end up determining long-term success.
Checking in on some valuation rankings, Regis Healthcare Limited (ASX:REG) has a Value Composite score of 40. 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 company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 31.
Watching some historical volatility numbers on shares of Regis Healthcare Limited (ASX:REG), we can see that the 12 month volatility is presently 37.419100. The 6 month volatility is 43.901900, and the 3 month is spotted at 38.633500. 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.
The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Regis Healthcare Limited (ASX:REG) is 5. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated 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.
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 Regis Healthcare Limited (ASX:REG) is 7525. 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”.
Shifting gears, we can see that Regis Healthcare Limited (ASX:REG) 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.
The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety 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 Regis Healthcare Limited (ASX:REG) is 4.00000. 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 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
The Current Ratio of Regis Healthcare Limited (ASX:REG) is 0.02. The Current Ratio is used by investors to determine whether a company can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities. A high current ratio indicates that the company might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.
The Leverage Ratio of Regis Healthcare Limited (ASX:REG) is 0.250707. Leverage ratio is the total debt of a company 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 measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.
Return on Assets
There are many different tools to determine whether a company is profitable or not. 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 Regis Healthcare Limited (ASX:REG) is 0.035330. 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 Earnings to Price yield of Regis Healthcare Limited ASX:REG is 0.059329. 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 Regis Healthcare Limited ASX:REG is 0.065171. 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 Regis Healthcare Limited (ASX:REG) is 0.059416.
Investors constantly have to weigh risk against reward when trying to extract profits and maximum value from the stock market. Making educated investment decisions typically requires dedication, rational thinking, and self-control. Once the individual investor starts developing good habits, they can start to eliminate the bad ones that may be costing them enormous amounts of hard earned money. Everybody is prone to make mistakes at some point, and being able to realize what contributed to the mistake can help with corrective actions. Repeating the same mistakes over and over again in the stock market will most likely lead the investor down the wrong path.