Can Koninklijke Wessanen N.V. (ENXTAM:WES) Drive Value For Investors?

Checking in on some valuation rankings, Koninklijke Wessanen N.V. (ENXTAM:WES) has a Value Composite score of 42. 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 40. 

Investors may have to periodically remind themselves that they don’t have to be locked in to any given trade. Sometimes, even the best researched trade may go sour. Doubling down on losses can be a dangerous game even for the experienced investor. Investors may hold out exiting a certain trade with the hope that eventually the stock will bounce back and they can at least break even. Of course this may occasionally be the case, but there is also the chance that a stock may continue to spiral downward. Investors who are able to control their emotions and logically manage their positions may give themselves a slight advantage when tough decisions need to be made. Nobody can say for sure which way the market momentum will swing on any given day, but being prepared for those swings can help the trader or investor make the best possible decisions at any given moment.

In taking a look at some other notable technicals, Koninklijke Wessanen N.V. (ENXTAM:WES)’s ROIC is 0.426258. The ROIC 5 year average is 0.322353 and the ROIC Quality ratio is 5.801525. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

We also note that Koninklijke Wessanen N.V. (ENXTAM:WES) has a Shareholder Yield of 0.001588 and a Shareholder Yield (Mebane Faber) of 0.03653. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Koninklijke Wessanen N.V. (ENXTAM:WES) has a current MF Rank of 2850. 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.

We can now take a quick look at some historical stock price index data. Koninklijke Wessanen N.V. (ENXTAM:WES) presently has a 10 month price index of 0.55603. 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 0.54794, the 24 month is 0.66137, and the 36 month is 1.22600. Narrowing in a bit closer, the 5 month price index is 0.78971, the 3 month is 0.91990, and the 1 month is currently 1.01251.

Inexperienced investors may have the tendency to purchase stocks that have recently been on a big run higher. This may be a result of not paying close attention to the fundamentals, or simply hoping that the stock will continue the move higher. Buying after a big move to the upside may mean that the investor is essentially paying too much for the stock at those levels. Sometimes a stock will take off and get too far ahead of its underlying value which may result in the price being overvalued. Keeping a close eye on the fundamentals may be a good way for the investor to know where the stock stands at any point in time.

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 Koninklijke Wessanen N.V. (ENXTAM:WES) 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.

Volatility

Watching some historical volatility numbers on shares of Koninklijke Wessanen N.V. (ENXTAM:WES), we can see that the 12 month volatility is presently 57.006700. The 6 month volatility is 54.296300, and the 3 month is spotted at 52.767300. 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. 

Piotroski F-Score

At the time of writing, Koninklijke Wessanen N.V. (ENXTAM:WES) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Investors hope that they won’t have to deal with stock picks that don’t pan out, but this happens quite often in the stock market. At some point, the investor may have to make the tough decision to sell a stock that previously had a lot of upward potential. Holding onto an underperforming stock can sometimes hurt the portfolio. Investors may be hesitant to let go of the stock long after it should have been sold. Tracking the underlying fundamentals can assist the investor with figuring out the proper time to buy or sell a particular stock. Mastering this aspect of investing may come with experience, but it may be highly beneficial for the long-term success of the portfolio.

P/B

Koninklijke Wessanen N.V. (ENXTAM:WES) has a Price to Book ratio of 2.887864. 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 14.745610, and a current Price to Earnings ratio of 21.905054. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.