Stock Focus: QI Valuation Update on Swedish Orphan Biovitrum AB (publ) (OM:SOBI), Telia Company AB (publ) (OM:TELIA)

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. Swedish Orphan Biovitrum AB (publ) (OM:SOBI) currently has a Q.i. Value of 32.00000.

As investors gear up for the stretch run towards the end of the year, the focus will be on which way stock market momentum seems to be shifting. Investors may be taking note of various economic reports and keeping a close eye on global political news. There are many factors that can affect the price of a stock. Tracking the markets from different angles may help to put together the bigger investing picture. Investors may be wondering if they have missed the boat as stocks have cooled off a bit recently. It may be wise to remember that there are always plenty of market opportunities to take advantage of. Diving into the fray may not be necessary until all the boxes are ticked off on the investor’s checklist.        

We can now take a quick look at some historical stock price index data. Swedish Orphan Biovitrum AB (publ) (OM:SOBI) presently has a 10 month price index of 0.61474. 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 0.92647, the 24 month is 1.41518, and the 36 month is 1.72684. Narrowing in a bit closer, the 5 month price index is 0.83884, the 3 month is 0.79159, and the 1 month is currently 1.09730.

Swedish Orphan Biovitrum AB (publ) (OM:SOBI) has a current ERP5 Rank of 3424. 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.

Checking in on some valuation rankings, Swedish Orphan Biovitrum AB (publ) (OM:SOBI) has a Value Composite score of 54. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 63.

Watching some historical volatility numbers on shares of Swedish Orphan Biovitrum AB (publ) (OM:SOBI), we can see that the 12 month volatility is presently 38.839000. The 6 month volatility is 32.799100, and the 3 month is spotted at 37.678500. 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.

Current Ratio

The Current Ratio of Swedish Orphan Biovitrum AB (publ) (OM:SOBI) is 0.70. 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.

Gross Margin Score

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 Swedish Orphan Biovitrum AB (publ) (OM:SOBI) is 10.00000. 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.

M-Score (Beneish)

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. Swedish Orphan Biovitrum AB (publ) (OM:SOBI) has an M-Score of -1.922757. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.

Piotroski F-Score

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 Swedish Orphan Biovitrum AB (publ) (OM:SOBI) 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.

Investors are always looking to gain any possible advantage in the stock market. Knowing the various risk and return possibilities for various types of stocks can be critical to positive performance. Creating a balanced equity portfolio may be the essential first step when thinking about diving into the equity markets. Investors may come from all different types of backgrounds, and they may face completely different situations. Each investor may need to identify their objectives and try to figure out what’s best for their specific situation. Investors may want to take a conservative approach to the markets. Others will be looking to go in full throttle with a very aggressive plan. Whatever the choice, it is important to note that picking stocks based on previous returns will never guarantee future returns. Investors have many choices they can make when looking to purchase stocks. Figuring out levels of risk, expectations of returns, and the overall investment time horizon can all play a big part in crafting the initial plan.

Telia Company AB (publ) (OM:TELIA) has a Q.i. Value of 33.00000. 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. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. 

Doing the proper research can go a long way when preparing to enter the stock market. Professional investors typically make sure that all the necessary research is completed when making crucial decisions. Of course, all the research in the world cannot guarantee success in the markets, but it can help to keep the investor one step ahead of the class. Understanding how the stock market functions can help the investor gain the confidence to start conquering the terrain. Building confidence in investing decisions can play a big part in the future success of the individual’s portfolio.

Checking in on some valuation rankings, Telia Company AB (publ) (OM:TELIA) has a Value Composite score of 36. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales.

The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 27.

There are plenty of various strategies to employ when deciding which stocks to buy. These different strategies may be super simple or highly complex. Although there is no one plan that will magically create instant profits, having a plan in place will most likely benefit the investor immensely. One way to examine shares is by following fundamental data. Essentially, fundamental study involves viewing the health of a particular company by studying company financials. Many investors will closely study the balance sheet to see how profitable the company has been and try to figure out future performance. Investors may choose to compare companies that share the same sector in order to get a truer sense of how it stacks up to the competition.

We can now take a quick look at some historical stock price index data. Telia Company AB (publ) (OM:TELIA) presently has a 10 month price index of 1.09071. 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.

Telia Company AB (publ) (OM:TELIA) has a current ERP5 Rank of 7699. 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.

Looking at some alternate time periods, the 12 month price index is 1.10005, the 24 month is 1.21007, and the 36 month is 1.25240. Narrowing in a bit closer, the 5 month price index is 1.11871, the 3 month is 1.03106, and the 1 month is currently 1.06867.

Watching some historical volatility numbers on shares of Telia Company AB (publ) (OM:TELIA), we can see that the 12 month volatility is presently 17.694600. The 6 month volatility is 13.961500, and the 3 month is spotted at 13.545600.

Key Ratios

Turning to some key ratios, Telia Company AB (publ) (OM:TELIA)’s Leverage Ratio was recently noted as 0.444642. This ratio is calculated by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a company is relative to the amount of debt on the balance sheet. This ratio is often viewed as one measure of the financial health of a firm.

Telia Company AB (publ) (OM:TELIA) presently has a current ratio of 1.21. 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 or market to book ratio for Telia Company AB (publ) (OM:TELIA) currently stands at 1.765596.  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. 

Ever wonder how investors predict positive share price momentum?  The Cross SMA 50/200, also known as the “Golden Cross” is the fifty day moving average divided by the two hundred day moving average.  The SMA 50/200 for Telia Company AB (publ) (OM:TELIA) is currently 0.98830.  If the Golden Cross is greater than 1, then the 50 day moving average is above the 200 day moving average – indicating a positive share price momentum.  If the Golden Cross is less than 1, then the 50 day moving average is below the 200 day moving average, indicating that the price might drop.

C Score (Montier)

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 Telia Company AB (publ) (OM:TELIA) is 0.00000. 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.

Investors might be searching far and wide for the next set of winning stocks to add to the portfolio. Many value investors may be on the lookout for stocks that are underpriced at current levels. Some investors may be looking for names that have the potential to see major growth in the next few years. Picking growth companies can be a bit riskier, but they may have much bigger potential for substantial returns. Other investors may be interested in finding companies that provide stable returns and pay out a solid dividend. Investors may even choose to piece together the portfolio with stocks from different categories. Having a diverse selection of stocks is typically recommended for longer-term portfolio health. 

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