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 Guyana Goldfields Inc. (TSX:GUY) stands at 0.194415. 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 Guyana Goldfields Inc. (TSX:GUY) is 0.068134. Further, the Earnings to Price yield of Guyana Goldfields Inc. TSX:GUY is 0.091506. 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.
Every investor strives to maximize returns in the stock market. To achieve success in the market, investors may take many different paths. Because there are so many different strategies, one investor’s road may end up being quite different than another. Over time, the investor may have to overcome various difficulties. Trading the stock market can indeed be exhilarating, but it can also cause lots of strife. Some investors may be able to be much more aggressive when creating the stock portfolio. Others may have a much lower risk threshold and choose to play it a bit safer. Because humans are prone to error, there may be many mistakes made along the way. Investors who are able to identify mistakes and learn from them may find themselves in a much better position down the road.
Quant Signals - Value Composite, C- Score, MF Rank, M-Score, ERP5
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Guyana Goldfields Inc. (TSX:GUY) is 7. 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 Guyana Goldfields Inc. (TSX:GUY) is 14.
Guyana Goldfields Inc. (TSX:GUY) currently has a Montier C-score of 4.00000. This indicator was developed by James Montier in an attempt to identify firms that were altering financial numbers 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 of something amiss. 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.
Investors are constantly hunting for bargains when picking stocks. There may be times when a particular stock might be flying under the radar, but is usually only a matter of time before someone catches on. Investors might be widening their stock focus to find these undervalued names. This may include small caps, foreign stocks, or stocks that just haven’t become household names. Expanding the scope of interest may help the investor discover areas of future opportunity. Although there are plenty of investors who will stick to the solid, historically steady stocks, there are plenty more that are searching for that next big winner that will give the portfolio a big bump.
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 Guyana Goldfields Inc. (TSX:GUY) is 2991. 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”.
Guyana Goldfields Inc. (TSX:GUY) has an M-score Beneish of -2.652104. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.
The last signal we’ll look at is the ERP5 Rank. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Guyana Goldfields Inc. (TSX:GUY) is 2266. The lower the ERP5 rank, the more undervalued a company is thought to be.
Even extremely solid stocks can sometimes face setbacks. There is no shortage of news regarding publically traded companies, and investors often have the tricky job of deciding what information is worth taking a closer look at. Making trading decisions based on one piece of data may not be the optimal course of action. When there is negative information about a company, investors may be quick to sell without looking deeper into the numbers. On the flip side, investors may be super quick to buy on good news without fully researching the stock.
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 Guyana Goldfields Inc. (TSX:GUY) is 66.066700. 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 Guyana Goldfields Inc. (TSX:GUY) is 142.710400. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 106.888100.
We can now take a quick look at some historical stock price index data. Guyana Goldfields Inc. (TSX:GUY) presently has a 10 month price index of 0.35529. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.37632, the 24 month is 0.27554, and the 36 month is 0.47340. Narrowing in a bit closer, the 5 month price index is 0.48238, the 3 month is 1.00565, and the 1 month is currently 1.11250.
The Return on Invested Capital (aka ROIC) for Guyana Goldfields Inc. (TSX:GUY) is 0.108547. 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 Guyana Goldfields Inc. (TSX:GUY) is 1.393783. 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 Guyana Goldfields Inc. (TSX:GUY) is 0.051836.
Investors might be looking high and low for quality stocks that have fallen out of favor with the investing community. There are plenty of stocks that get continuous coverage from the big media outlets, but there are many others that may be hiding behind the scenes. Conducting thorough stock research can help the investor isolate certain stocks that might be ready for a near-term bounce. With the stock market still trading near record levels, investors will be looking for any opportunity to pounce on shares that might have been left behind for whatever reason.