Dorman Products, Inc. (NasdaqGS:DORM) and Saia, Inc. (NasdaqGS:SAIA) Stock Valuation in Focus

Dorman Products, Inc. (NasdaqGS:DORM) currently has a Value Composite score of 55.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Dorman Products, Inc. (NasdaqGS:DORM) is 50.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.

Following a pre-defined trading system might be a solid choice for securing profits in the stock market. Defining goals before creating a plan can be a good way to start the trader off on the right path. There are bound to be many ups and downs throughout the trading process. Being able to manage wins and losses may be one of the most important factors to becoming a successful trader. Without a researched plan, traders may realize how quick the losses can pile up. Properly managing risk, position size, entry and exit points, and stops, may come with experience, but it is typically necessary in order to stay above water in the fast paced market environment.
 
Technicals at a Glance

In taking a look at some other notable technicals, Dorman Products, Inc. (NasdaqGS:DORM)’s ROIC is 0.195125. The ROIC 5 year average is 0.366384 and the ROIC Quality ratio is 15.549538. 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.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Dorman Products, Inc. (NasdaqGS:DORM) is 0.118733.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Shareholder Yield
We also note that Dorman Products, Inc. (NasdaqGS:DORM) has a Shareholder Yield of 0.013379 and a Shareholder Yield (Mebane Faber) of -0.00213. 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.

Dorman Products, Inc. (NasdaqGS:DORM) has a current MF Rank of 4863. 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.

Price Index
We can now take aquick look at some historical stock price index data. Dorman Products, Inc. (NasdaqGS:DORM) presently has a 10 month price index of 0.82479. 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 0.90610, the 24 month is 1.06164, and the 36 month is 1.18407. Narrowing in a bit closer, the 5 month price index is 0.88457, the 3 month is 1.06578, and the 1 month is currently 0.92462.

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 Dorman Products, Inc. (NasdaqGS:DORM) is 2.  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.

Investors looking to secure stock market profits may be tweaking an existing strategy or looking to devise a brand new one. As the stock market keeps charging higher, investors will have to figure out how they want to play the next few months. Identifying market tops and possible correction levels may be very tricky. With the markets trading at current levels, the situation for the average investor may be widely varied. Some investors will be trading with a shorter-term plan, while others may be focused on a longer-term investment time frame. There are many financial professionals who are predicting a sharp reversal in the stock market, but there are also those who believe that the upswing will keep pushing stocks higher over the coming months. Investors will need to decide for themselves which way they think the momentum is going to swing and prepare accordingly.     

Taking a look at valuation rankings for Saia, Inc. (NasdaqGS:SAIA), we see that the stock has a Value Composite score of 35. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 44.

As the next earnings season comes into focus, investors will be keeping watch on the performance of companies that they own. A company that continually exceeds earnings projections is most likely on the right track. On the other end of the spectrum, a company that frequently misses earnings projections might provide some insight to the fact that something isn’t right. Although it is important to keep track of earnings estimates and results, it shouldn’t be the only thing that the investor is looking at regarding the stock. Just because a company misses or beats expectations for one quarter may not mean anything super special. Tracking performance over a longer period of time can help paint the bigger picture of what is going on with the company. Sharp investors often have the ability to look deeper into the numbers to see the actual causes of an earnings hit or miss. Of course estimates are just that, estimates, and some analysts may be more accurate than others. 

In taking a look at some other notable technicals, Saia, Inc. (NasdaqGS:SAIA)’s ROIC is 0.134778. The ROIC 5 year average is 0.143096 and the ROIC Quality ratio is 7.744690. 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.

The Q.i. Value of Saia, Inc. (NasdaqGS:SAIA) is 43.00000.  The Q.i. Value is a 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 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 Saia, Inc. (NasdaqGS:SAIA) is 0.002767. 

Shareholder Yield
We also note that Saia, Inc. (NasdaqGS:SAIA) has a Shareholder Yield of -0.008132 and a Shareholder Yield (Mebane Faber) of -0.07088. 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.

MF Rank
Saia, Inc. (NasdaqGS:SAIA) has a current MF Rank of 5594. 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.

PI
We can now take aquick look at some historical stock price index data. Saia, Inc. (NasdaqGS:SAIA) presently has a 10 month price index of 1.71122. 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 1.46331, the 24 month is 1.42816, and the 36 month is 2.68963. Narrowing in a bit closer, the 5 month price index is 1.61582, the 3 month is 1.21051, and the 1 month is currently 1.02527.

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.   

Leave a Reply

Your email address will not be published. Required fields are marked *

*