Investors are constantly examining different company financial indicators to assess trading opportunities. China National Building Material Company Limited (SEHK:3323) presently has an EV or Enterprise Value of 190129572. The EV is used to show how the market assigns value to a company as a whole. EV is basically a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Tracking EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.
When it comes to securing profits in the stock market, investors may be trying to find a perfect system to help attain that goal. Dedicated investors may try strategies that have been passed on to them from other seasoned investors. Even after reading every piece of literature about investing, it might be hard to figure out which way is the best way to successfully conquer the market. Studying up on company fundamentals and following technical stock levels can be a good place to start, but creating and implementing a plan can be difficult. As we all know, markets change over time. What drives a market during one point in time may not drive the market at a future date. Knowing what to look for when studying technical levels or fundamentals may help lead down the path to increased profits. Many investors will choose to study the indicators with the highest probability of forecasting future market action.
Currently, China National Building Material Company Limited (SEHK:3323)’s ROIC is 0.092161. The ROIC 5 year average is 0.091415 and the ROIC Quality ratio is 3.449565. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a company is at turning capital into profits. ROIC may be a good measure to view when examining whether or not a company is able to invest wisely. ROIC may also be an important metric for the value investor who is trying to determine the company’s moat. China National Building Material Company Limited (SEHK:3323) has a current Value Composite Score of 2. Using a scale from 0 to 100, a lower score would represent an undervalued company and a higher score would indicate an expensive or overvalued company. This ranking was developed by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.
Investors seeking value in the stock market may be eyeing the Magic Formula Rank or MF Rank for China National Building Material Company Limited (SEHK:3323). Presently, the company has a MF Rank of 5362. The Magic Formula was devised and made popular by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps find stocks that are priced attractively with a high earnings yield, or strong reported profits in comparison to the market value of the company. To spot opportunities in the market, investors may be searching for stocks that have the lowest combined MF Rank.
Market watchers may also be following some quality ratios for China National Building Material Company Limited (SEHK:3323). Currently, the company has a Gross Margin (Marx) ratio of 0.091404. This calculation is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, China National Building Material Company Limited (SEHK:3323) has a Gross Margin score of 32.00000. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative.
The Price Index is a ratio that indicates the return of a share price over a past period. The price index of China National Building Material Company Limited (SEHK:3323) for last month was 1.15536. 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 China National Building Material Company Limited (SEHK:3323) is 1.81076.
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 China National Building Material Company Limited (SEHK:3323) over the past 52 weeks is 0.935000. The 52-week range can be found in the stock’s quote summary.
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 China National Building Material Company Limited (SEHK:3323) 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 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of China National Building Material Company Limited (SEHK:3323) is 42.160400. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company 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 share price over 3 months. The Volatility 3m of China National Building Material Company Limited (SEHK:3323) is 49.496000. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 43.305800.
Investors may be taking a closer look stock market trends as we move into the second half of the year. Investors often have to grapple with the timing of selling a stock. After all the research is done and the portfolio is rounded out, the time will eventually come when decisions need to be made about whether to hold a winner or sell to lock up some profits. Often times, investors will hold on to a certain stock for much too long letting profits erode. Thinking that a hot stock will keep going higher and higher, may lead to lost profits further down the road. On the flip side, investors may become emotionally attached to a stock and not be able to part ways when the time has come. Avoiding the trap of waiting for a stock to bounce back and just break even can lead to the undoing of the portfolio. The belief that a particular stock will definitely come back to the buying level may leave investors out in the cold. Being able to keep the emotions in check and stay focused on the pertinent data, may help the stock portfolio thrive into the future.