Quant Signal & Rank Update For First Sensor AG (XTRA:SIS), Sixt Leasing SE (XTRA:LNSX)

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 First Sensor AG (XTRA:SIS) is 0.043473. 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.

Investors may be taking a closer look at holdings and trying to decide which way the stock market will lean in the second half of the year. Maybe there are some surprising winners, and the decision needs to be made to either sell for a profit or hold on for further potential gains. Maybe there are some losers that are being held onto with the hope of a rebound. Sometimes investors may get too emotionally attached to certain stocks. Keeping unbiased focus on the market may help provide the portfolio with an added boost. Nobody knows for sure what will transpire over the next few quarters. As earnings reports flow in, investors will be monitoring which companies provide the biggest surprises. 

Taking a step further we can take a look at various other valuation metrics.  First Sensor AG (XTRA:SIS) has a Price to Book ratio of 2.337482. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of , and a current Price to Earnings ratio of 29.319067. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

The Free Cash Flor 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 First Sensor AG (XTRA:SIS) is 0.020170. 

The Return on Invested Capital (aka ROIC) for First Sensor AG (XTRA:SIS) is 0.085657.  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 First Sensor AG (XTRA:SIS) is 3.224180.  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 First Sensor AG (XTRA:SIS) is 0.080480.

First Sensor AG (XTRA:SIS) presently has a current ratio of 2.07. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

In terms of value, First Sensor AG (XTRA:SIS) has a Value Composite score of 53. 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 49.

Quant Ranks (ERP5, Gross Margin, F Score)

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 First Sensor AG (XTRA:SIS) is 9818.  The lower the ERP5 rank, the more undervalued a company is thought to be.

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 First Sensor AG (XTRA:SIS) is 4.  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.

Investors may be interested in viewing the Gross Margin score on shares of First Sensor AG (XTRA:SIS). The name currently has a score of 6.00000. 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.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of First Sensor AG (XTRA:SIS) for last month was 1.00254. 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 First Sensor AG (XTRA:SIS) is 0.93562.
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 First Sensor AG (XTRA:SIS) over the past 52 weeks is 0.648000. The 52-week range can be found in the stock’s quote summary.

Some dedicated market watchers will preach the old adage, nothing ventured nothing gained. Some may adhere to the slow and steady mindset. The correct play for one investor may not be the same for another. Some may choose to be fully invested while others may keep some cash on the sidelines. Active stock market investors may have to find that perfect balance between being too risky or playing it too safe. If the market keeps charging higher in the second half of the year, investors may have to decide whether to take profits, or let it ride. 

In trying to determine how profitable a company is per asset dollar, we can take a look at  the firm’s Return on Assets.  Return on assets is calculated by dividing a company’s net income (usually annual income) by its total assets, and is displayed as a percentage. At the time of writing, Sixt Leasing SE (XTRA:LNSX) has 0.017481 ROA.  The measure is commonly used to compare the performance of businesses within the same industry, since it is very difficult for someone to obfuscate the cash flow figure. Thus, the ratio is quite a reliable and comparable measure of asset performance across an industry.

Stock market investors may be taking some time to review portfolio allocation. Rebalancing the portfolio may be necessary for some but not for others. Rebalancing the portfolio may help provide a strategy for when the market becomes highly volatile. This process may also help keep the investor buying low and selling high. Investors may also be looking at some different stocks to explore in the next few months. This may include reviewing some foreign markets or some new sectors that were previously not included in the stock portfolio. Completing all the necessary research is typically a good way to start building a more comprehensive pool of diversified stocks.    

Valuation Scores

Checking in on some valuation rankings, Sixt Leasing SE (XTRA:LNSX) 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 32.

Sixt Leasing SE (XTRA:LNSX) has a current MF Rank of 9599. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

The price to book ratio or market to book ratio for Sixt Leasing SE (XTRA:LNSX) currently stands at 1.097250.  The ratio is calculated by dividing the stock price per share by the book value per share.  This ratio is used to determine how the market values the equity.  A ratio of under 1 typically indicates that the shares are undervalued.  A ratio over 1 indicates that the market is willing to pay more for the shares.  There are often many underlying factors that come into play with the Price to Book ratio so all additional metrics should be considered as well. 

Ever wonder how investors predict positive share 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 Sixt Leasing SE (XTRA:LNSX) is currently 0.79410.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share 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 Sixt Leasing SE (XTRA:LNSX) is 0.772957. 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.

Volatility

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 Sixt Leasing SE (XTRA:LNSX) is 37.121300.  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 Sixt Leasing SE (XTRA:LNSX) is 45.707600.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 35.842800.

Quant Scores

The Q.i. Value of Sixt Leasing SE (XTRA:LNSX) is 49.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

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 Sixt Leasing SE (XTRA:LNSX) is 3.  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 M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Sixt Leasing SE (XTRA:LNSX) has an M-Score of -2.123078.  The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets.  A score higher than -1.78 is an indicator that the company might be manipulating their numbers.

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years.  The score is a number between one and one hundred (1 being best and 100 being the worst).  The Gross Margin Score of Sixt Leasing SE (XTRA:LNSX) is 33.00000.  The more stable the company, the lower the score.  If a company is less stable over the course of time, they will have a higher score.

Often times, the stock market will be affected by political, social, or economic events. The result may be end up to be positive or negative. It is wise to remember that market fluctuations can happen at any time for many various reasons. Sometimes it may not be evident of why the market moved until long after the scene has played out. Making investment decisions in a turbulent climate may be extremely tricky. At some point, investors may find themselves on the wrong end of a trade. Staying vigilant in the markets may help investors bounce back after a temporary defeat. Investors who stay the course and stay with an investment plan may be able to better handle the ups and downs of daily market movements. Repeatedly trying to find the tops or bottoms is not an easy task. Even the most seasoned investors may not be able to successfully time the market.