Investors Peering into the Details on Finning International Inc. (TSX:FTT) as Value Comp Hits 24

The Value Composite 2 (VC2) is a ranking system that is calculated by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of Finning International Inc. (TSX:FTT) is 24.   Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of Finning International Inc. (TSX:FTT) is 33.  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. 

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

At the time of writing, Finning International Inc. (TSX:FTT) has a Piotroski F-Score of 4. 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.

Watching some historical volatility numbers on shares of Finning International Inc. (TSX:FTT), we can see that the 12 month volatility is presently 28.342500. The 6 month volatility is 26.297500, and the 3 month is spotted at 30.236100. 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. 

Shifting gears, we can see that Finning International Inc. (TSX:FTT) has a Q.i. Value of 40.00000. 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.

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Finning International Inc. (TSX:FTT) has a current MF Rank of 5837. 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. Finning International Inc. has a current ERP5 Rank of 5880. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Finning International Inc. has an M-score Beneish of -2.134619. This M-score model 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”.

Investors may be interested in viewing the Gross Margin score on shares of Finning International Inc. (TSX:FTT). The name currently has a score of 22.00000. 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.

We can now take a quick look at some historical stock price index data. Finning International Inc. (TSX:FTT) presently has a 10 month price index of 0.88420. 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 0.81213, the 24 month is 0.90873, and the 36 month is 1.12043. Narrowing in a bit closer, the 5 month price index is 1.00333, the 3 month is 1.08265, and the 1 month is currently 1.03083.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.