Digging Into the Earnings Yield For Cooper Energy Limited (ASX:COE), Matinas BioPharma Holdings, Inc. (AMEX:MTNB)

The Earnings to Price yield of Cooper Energy Limited (ASX:COE) is 0.035068.  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.  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 Cooper Energy Limited ASX:COE is 0.005095.  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 Cooper Energy Limited (ASX:COE) is -0.003110.

Investors may be trying to decide if it is the right time to enter the equity market. Stocks have been performing well of late, and investors may be eager to catch the next potential move higher. When looking to put money into the stock market, investors might be working hard to create a strategy and choose specific stocks to add to the portfolio. Building a strategy can be tough, but sticking to a strategy can be even tougher. Sticking to the game plan when markets are in flux can greatly improve the investor’s chances of succeeding in the market. 

Quant Scores/Key Ratios

Now we’ll turn to some key quant data and ratios. The Current Ratio of Cooper Energy Limited (ASX:COE) is 2.15. 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 might 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.

Cooper Energy Limited (ASX:COE)’s Leverage Ratio was recently noted as 0.178590. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.

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 Cooper Energy Limited (ASX:COE) is 53.00000. 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.

At the time of writing, Cooper Energy Limited (ASX:COE) has a Piotroski F-Score of 5. 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.

Cooper Energy Limited (ASX:COE) has an M-score Beneish of -1.065507. This M-score model is a little known investment tool that 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 Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Cooper Energy Limited (ASX:COE) is 59.  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 Cooper Energy Limited (ASX:COE) is 69.

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 Cooper Energy Limited (ASX:COE) is 11403.  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”.

Shifting gears, we can see that Cooper Energy Limited (ASX:COE) has a Q.i. Value of 64.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Price Index/Share Movement

We can now take a quick look at some historical stock price index data. Cooper Energy Limited (ASX:COE) presently has a 10 month price index of 1.58333. 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 1.35714, the 24 month is 1.26667, and the 36 month is 3.16667. Narrowing in a bit closer, the 5 month price index is 1.07955, the 3 month is 1.03261, and the 1 month is currently 1.11765.

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 Cooper Energy Limited (ASX:COE) is 29.056400.  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 Cooper Energy Limited (ASX:COE) is 46.262500.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 41.021100.

When dealing with the volatility and unpredictability of the stock market, investors may have to learn how to deal with their emotions. There are many factors that can have a big impact on the portfolio. Maintaining discipline can be one of the most important factors. From time to time, investors will be overcome by fear during a large market selloff. On the other side, investors may become extremely excited during a widespread market move to the upside. When these situations occur, investors tend to make better decisions if they are able to keep emotions out of play and stick to the original plan. Buying and selling at the wrong time can lead to portfolio underperformance, and it may damage investor confidence in the future.

Here will take a quick scan of Earnings Yield information on shares of Matinas BioPharma Holdings, Inc. (AMEX:MTNB). Currently, the Earnings to Price (Yield) is -0.122122, Earnings Yield is -0.118086, and Earnings Yield 5 year average is -0.076345. Earnings yield provides a way for investors to help measure returns. Investors may choose to compare the earnings yield of stocks to money market instruments, treasuries, or bonds. The firm will look to it’s next scheduled report date to try to improve on these numbers.

Many individual investors who trade stocks are looking for the next big breakout. It can be much more exciting to be able to tell glamorous stories of picking a winning stock before everybody else was aware. Of course, this is no easy task. There are so many stocks to choose from, and hunting for undervalued stocks may take lots of time that many investors do not have. Other investors will strictly trade the big established names with the hope that consistent growth will provide stable returns to the portfolio. Understanding risks involved with picking stocks can help the investor figure out what is best for them individually. It is typically considered wise to make sure that there is proper diversification in the stock portfolio. Finding that balance to achieve long lasting portfolio health is generally what most investors attempt to accomplish when trading equities.

Checking in on some valuation rankings, Matinas BioPharma Holdings, Inc. (AMEX:MTNB) has a Value Composite score of 96. 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 94.

FCF

Turning to Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Matinas BioPharma Holdings, Inc. (AMEX:MTNB) is -0.222363.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Matinas BioPharma Holdings, Inc. (AMEX:MTNB) is 0.593470.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Watching some historical volatility numbers on shares of Matinas BioPharma Holdings, Inc. (AMEX:MTNB), we can see that the 12 month volatility is presently 134.342800. The 6 month volatility is 135.517800, and the 3 month is spotted at 122.803900. 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.  Heading into earnings season investors often take close note of the volatility levels ahead of and immediately after the earnings report. 

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Matinas BioPharma Holdings, Inc. (AMEX:MTNB) for last month was 1.75909. 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 Matinas BioPharma Holdings, Inc. (AMEX:MTNB) is 1.10526.
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 Matinas BioPharma Holdings, Inc. (AMEX:MTNB) over the past 52 weeks is 0.938000. The 52-week range can be found in the stock’s quote summary.

Quant Data
Shifting gears, we can see that Matinas BioPharma Holdings, Inc. (AMEX:MTNB) has a Q.i. Value of 77.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Another signal that many company execs and investors don’t want to talk about is the C-Score. The C-Score is a system developed by James Montier that helps determine whether a company is involved in inflating 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 Matinas BioPharma Holdings, Inc. (AMEX:MTNB) 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 unusual activity. The C-Score assists investors in assessing the validity of financials. 

F-Score

At the time of writing, Matinas BioPharma Holdings, Inc. (AMEX:MTNB) has a Piotroski F-Score of 3. 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.

From time to time, even solid companies may experience some sort of setback. Just because a company encounters one negative event, it might not be appropriate to sell the stock. Often times, the stock may still be valuable on a fundamental level, and there may be plenty of room for resurgence. When bad news hits, the stock price may be greatly impacted. Sometimes there can be an overexaggeration which leads to erroneous selling. This can in turn provide buying opportunities to those in the know. Investors who do the homework and closely examine the underlying numbers may put themselves in a good position when situation like this arise. Investors that are looking for longer term value may find that a panic sell-off is the perfect chance to get into a stock that has just suffered a temporary setback. Paying attention to these occurrences can greatly help the investor spot potential buying opportunities in the equity market.