Stocks to Watch: Ryoden Corporation (TSE:8084), Fukuda Denshi Co., Ltd. (JASDAQ:6960) Valuation in Focus

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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 Ryoden Corporation (TSE:8084) is 2281.  The lower the ERP5 rank, the more undervalued a company is thought to be.

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The Q.i. Value of Ryoden Corporation (TSE:8084) is 4.00000. 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 Ryoden Corporation (TSE:8084) is 0.170028.

The Earnings to Price yield of Ryoden Corporation (TSE:8084) is 0.110715.  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 Ryoden Corporation (TSE:8084) is 0.155168.  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 Ryoden Corporation is 0.129323.

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 Ryoden Corporation (TSE:8084) is -0.013718.

Ratios

The Current Ratio of Ryoden Corporation (TSE:8084) is 1.93. 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 Ryoden Corporation (TSE:8084) is 0.012071.  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 Ryoden Corporation (TSE:8084) currently stands at 0.496906.  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 Ryoden Corporation (TSE:8084) is 5.  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 Ryoden Corporation (TSE:8084) 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.

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Fukuda Denshi Co., Ltd. (JASDAQ:6960) has an ERP5 rank of 1653. 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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The Q.i. Value of Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 8.00000. 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 Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 0.243693.

The Earnings to Price yield of Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 0.080066.  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 Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 0.148557.  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 Fukuda Denshi Co., Ltd. is 0.140264.

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 Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 0.090732.

Price Index

We can now take a quick look at some historical stock price index data. Fukuda Denshi Co., Ltd. (JASDAQ:6960) presently has a 10 month price index of 0.90375. 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 0.92614, the 24 month is 1.14329, and the 36 month is 1.29005. Narrowing in a bit closer, the 5 month price index is 0.96272, the 3 month is 1.04985, and the 1 month is currently 0.98487.

Returns

Looking at some ROIC (Return on Invested Capital) numbers, Fukuda Denshi Co., Ltd. (JASDAQ:6960)’s ROIC is 0.133901. The ROIC 5 year average is 0.134451 and the ROIC Quality ratio is 19.971574. 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.

Fukuda Denshi Co., Ltd. (JASDAQ:6960) has a Price to Book ratio of 0.947224. 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 , and a current Price to Earnings ratio of 12.489708. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Fukuda Denshi Co., Ltd. (JASDAQ:6960) presently has a current ratio of 2.91. 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 Fukuda Denshi Co., Ltd. JASDAQ:6960 is 0.947224.  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 Fukuda Denshi Co., Ltd. (JASDAQ:6960) is .  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 Fukuda Denshi Co., Ltd. (JASDAQ:6960) is 12.489708. This ratio is found by taking the current share price and dividing by earnings per share.

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