EnerSys (NYSE:ENS) & Appian Corporation (NasdaqGM:APPN) Valuation at a Glance

EnerSys (NYSE:ENS) currently has a Value Composite score of 35.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of EnerSys (NYSE:ENS) is 44.

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Technicals

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. 

In taking a look at some other notable technicals, EnerSys (NYSE:ENS)’s ROIC is 0.229542. The ROIC 5 year average is 0.310054 and the ROIC Quality ratio is 13.802794. 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.

We also note that EnerSys (NYSE:ENS) has a Shareholder Yield of -0.007198 and a Shareholder Yield (Mebane Faber) of -0.16188. 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.

EnerSys (NYSE:ENS) has a current MF Rank of 3209. 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.

We can now take a quick look at some historical stock price index data. EnerSys (NYSE:ENS) presently has a 10 month price index of 0.91164. 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 0.86138, the 24 month is 1.01835, and the 36 month is 1.13787. Narrowing in a bit closer, the 5 month price index is 1.22292, the 3 month is 1.08286, and the 1 month is currently 1.15746.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying 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 EnerSys (NYSE:ENS) is 3.00000.  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 fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

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. 

Taking a look at valuation rankings for Appian Corporation (NasdaqGM:APPN), we see that the stock has a Value Composite score of 83. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 84.

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, Appian Corporation (NasdaqGM:APPN)’s ROIC is -0.275184. The ROIC 5 year average is and the ROIC Quality ratio is . 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 Appian Corporation (NasdaqGM:APPN) is -0.257469.  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 Appian Corporation (NasdaqGM:APPN) has a Shareholder Yield of -0.052043 and a Shareholder Yield (Mebane Faber) of -0.05610. 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.

Appian Corporation (NasdaqGM:APPN) has a current MF Rank of 13425. 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. Appian Corporation (NasdaqGM:APPN) presently has a 10 month price index of 1.67547. 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 1.73505, the 24 month is 1.82566, and the 36 month is 2.95803. Narrowing in a bit closer, the 5 month price index is 1.33333, the 3 month is 1.14699, and the 1 month is currently 0.94008.

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 Appian Corporation (NasdaqGM:APPN) is 4.  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.     

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