Nakanishi Inc. (JASDAQ:7716), Audentes Therapeutics, Inc. (NasdaqGM:BOLD): Will These Stocks Go The Extra Mile?

Nakanishi Inc. (JASDAQ:7716) currently has a current ratio of 10.77. The current ratio, which is 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 and in turn a more healthy balance sheet.

Occasionally, a certain stock may perform much higher than expectations, and it may become a much greater percentage of the portfolio. This is typically a good thing, but it may require some decisions on what to do with the portfolio allocations. If one stock is making up a high percentage of the total, it may create the risk of higher than normal average losses if the shares take an unforeseen dive lower. Even if the stock has the potential to go much higher, it can be tricky to know when to sell and find other stocks that might be a better value. Selling a winner might leave the average investor frustrated if the stock goes higher, but there may be nothing wrong with taking profits and not leaving gains on the table. As we move into the second half of the year, investors may want to compare first half gains with goals that were established at the beginning of the year. This may help narrow in on what needs to be done in order to stay in the green for the rest of the year and beyond. Setting portfolio goals may be a good way to stay the course when things get a little hairy in the markets.

Yield

The Q.i. Value of Nakanishi Inc. (JASDAQ:7716) is 36.00000.  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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Nakanishi Inc. (JASDAQ:7716) is 54.  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 Nakanishi Inc. (JASDAQ:7716) is 49.

Volatility & Price
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 Nakanishi Inc. (JASDAQ:7716) is 31.331500.  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 Nakanishi Inc. (JASDAQ:7716) is 26.333900.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 24.164500.

We can now take a quick look at some historical stock price index data. Nakanishi Inc. (JASDAQ:7716) presently has a 10 month price index of 0.79068. 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 0.83087, the 24 month is 1.09580, and the 36 month is 1.48952. Narrowing in a bit closer, the 5 month price index is 0.80325, the 3 month is 0.92516, and the 1 month is currently 0.99047.

Key Metrics

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 Nakanishi Inc. (JASDAQ:7716) 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 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 Nakanishi Inc. (JASDAQ:7716) is 3605.  The lower the ERP5 rank, the more undervalued a company is thought to be. 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 Nakanishi Inc. (JASDAQ:7716) is 3663.  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”.

The Leverage Ratio of Nakanishi Inc. (JASDAQ:7716) is 0.001372.  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.

C-Score
Nakanishi Inc. (JASDAQ:7716) currently has a Montier C-score of -1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books 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. 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.

When examining stocks, investors might be doing top down research. Top down analysis begins with looking at certain macro-economic factors. This may involve focusing in on the bigger picture and going all the way down to specific stocks. Starting at the top, investors may check on the global economic environment, overall market trends, and sector trends. Investors may choose to start doing research the other way around. This may involve first looking at the fundamentals for particular stocks in order to gauge the strength from a company standpoint. Many investors will scope out all the different investing aspects as to not leave any information uncovered.

The Current Ratio of Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 14.38.  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 does not 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. It is wise to compare a company’s current ratio to that of other companies in the same industry. It would also be wise to look at the trend of the current ratio for a given company over a given time period.

Investors may be trying to figure out what stocks will give a boost to portfolio performance over the next few months. Value investors may be looking for current value in the market. They are generally looking for bargains and interested in uncovering those stocks that may be primed for a run but have fallen out of favor with Wall Street. Growth investors may be looking to target companies that are able to advance earnings faster than average. This may include searching for those industries that have strong growth trends and a proven track record of strong sales and earnings growth. 

F Score, ERP5 and Magic Formula

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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 2.  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 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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 16401.  The lower the ERP5 rank, the more undervalued a company is thought to be. 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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 16812.  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”.

Shareholder Yield

The Q.i. Value of Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 80.00000.  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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 81.  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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 85.

The Leverage Ratio of Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 0.072713.  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 & Price

We can now take a quick look at some historical stock price index data. Audentes Therapeutics, Inc. (NasdaqGM:BOLD) presently has a 10 month price index of 1.36824. 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 0.77653, the 24 month is 1.20777, and the 36 month is 2.06097. Narrowing in a bit closer, the 5 month price index is 0.79949, the 3 month is 0.77847, and the 1 month is currently 0.90803.

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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 64.059800.  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 Audentes Therapeutics, Inc. (NasdaqGM:BOLD) is 43.056000.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 44.713000.

C-Score
Audentes Therapeutics, Inc. (NasdaqGM:BOLD) currently has a Montier C-score of -1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books 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. 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.

Some investors may be looking to trade the trend and capitalize on strong current performers. Other investors may look to take a contrarian approach. This can involve looking for names that have been overlooked by the crowd. There are many different contrarian approaches that investors may choose to use. Going against the crowd may require a lot more homework and confidence. There may be hidden gems out there, but is may be wise to investigate why nobody else seems to want to get into the name. Finding that perfect strategy may take a lot of study and dedication. Taking shortcuts in the market can have severe negative effects on the long-term health of the portfolio. 

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