Stock Valuations in Focus for Caribbean Utilities Company, Ltd. (TSX:CUP.U), CEVA, Inc. (NasdaqGS:CEVA)

Caribbean Utilities Company, Ltd. (TSX:CUP.U) has an ERP5 rank of 10049. 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 lower the ERP5 rank, the more undervalued a company is thought to be.

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Investors are constantly looking to find winning stocks that have been largely overlooked. With markets still riding high, this may not be the easiest thing in the world right now. Finding those perfect stocks before they become household names may take a lot of research and homework. Many investors will apply various strategies for picking stocks. If there was one that worked for everybody, it would make things super easy. Of course, this is not the case. Obviously, there are no guarantees in the stock market. Some investors may only focus on the fundamentals of a company and completely ignore the technicals. Others may choose to only watch technicals and never take a look at the underlying company information. Combining both areas of research may help give a better feel of what is going on with the stock in the long term and the short term. Individual investors who manage their own portfolios may need to put in a lot more time than those who don’t. Successful investors often have an uncanny way of filtering out the noise and keeping their focus on the right information. 

The Q.i. Value of Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 31.00000. The Q.i. Value is another 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.

Technicals
The EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s 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 EBITDA Yield for Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 0.073840.

The Earnings to Price yield of Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 0.052282.  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 Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 0.034530.  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 Caribbean Utilities Company, Ltd. is 0.029040.

The FCF 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 Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 0.004318.

Ratios

The Current Ratio of Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 1.36. 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.

The Leverage Ratio of Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 0.564095.  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.

The price to book ratio or market to book ratio for Caribbean Utilities Company, Ltd. (TSX:CUP.U) currently stands at 2.394041.  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. 

Adding it All Up

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 Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 8.  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 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 Caribbean Utilities Company, Ltd. (TSX:CUP.U) is 1.00000. 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.

Investors constantly have to weigh risk against reward when trying to extract profits and maximum value from the stock market. Making educated investment decisions typically requires dedication, rational thinking, and self-control. Once the individual investor starts developing good habits, they can start to eliminate the bad ones that may be costing them enormous amounts of hard earned money. Everybody is prone to make mistakes at some point, and being able to realize what contributed to the mistake can help with corrective actions. Repeating the same mistakes over and over again in the stock market will most likely lead the investor down the wrong path. 

CEVA, Inc. (NasdaqGS:CEVA) has an ERP5 rank of 11132. The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  It looks at the stock’s Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The lower the rank, the more undervalued a company is considered to be.

Successful stock market traders generally have a keen ability to cut losses short and let winners run. This may sound easy, but novice traders have the tendency to actually extend losses and fail to secure profits. New stock market traders may encounter a few different scenarios when starting out. They may make a few early trades that prove to be big winners, or they may get taken to the cleaner right out of the gate. When a trader experiences big wins from the start, this may create an inflated sense of confidence. On the flip side, a string of early losses can be so discouraging that the trader throws in the towel without really even getting into the game. 

The Q.i. Value of CEVA, Inc. (NasdaqGS:CEVA) is 57.00000. The Q.i. Value is another 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 EBITDA Yield is a great way to determine a company’s profitability. This number is calculated by dividing a company’s earnings before interest, taxes, depreciation and amortization by the company’s 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 EBITDA Yield for CEVA, Inc. (NasdaqGS:CEVA) is 0.005749.

The Earnings to Price yield of CEVA, Inc. (NasdaqGS:CEVA) is -0.001282.  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 CEVA, Inc. (NasdaqGS:CEVA) is -0.005173.  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 CEVA, Inc. is 0.019157.

The FCF 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 CEVA, Inc. (NasdaqGS:CEVA) is 0.036034.

Price Index

We can now take a quick look at some historical stock price index data. CEVA, Inc. (NasdaqGS:CEVA) presently has a 10 month price index of 0.91396. 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 0.97517, the 24 month is 0.55208, and the 36 month is 0.87420. Narrowing in a bit closer, the 5 month price index is 1.05152, the 3 month is 0.85179, and the 1 month is currently 0.91720.

Returns

Looking at some ROIC (Return on Invested Capital) numbers, CEVA, Inc. (NasdaqGS:CEVA)’s ROIC is -0.030944. The ROIC 5 year average is 0.159324 and the ROIC Quality ratio is 1.973649. 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.

CEVA, Inc. (NasdaqGS:CEVA) has a Price to Book ratio of 2.286079. 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 64.427768, and a current Price to Earnings ratio of -779.831600. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

CEVA, Inc. (NasdaqGS:CEVA) presently has a current ratio of 6.80. 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.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for CEVA, Inc. NasdaqGS:CEVA is 2.286079.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for CEVA, Inc. (NasdaqGS:CEVA) is 64.427768.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for CEVA, Inc. (NasdaqGS:CEVA) is -779.831600. This ratio is found by taking the current share price and dividing by earnings per share.

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