Quant Value Comp Score Pushes to 69 For Ubiquiti Networks, Inc. (NasdaqGS:UBNT)



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The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 69.  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.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 53.

Smart investors are often very knowledgeable about the markets. Many successful investors have become highly adept at knowing when to buy and when to sell. They have also managed to control risk and secure sustained profits. This doesn’t just happen overnight. Investors often spend many years of trial and error before being able to put together the puzzle. Top investors are also able to make better investing decisions with the information at hand. With vast amounts of data readily available for everyone, it becomes more about interpreting the data rather than just receiving it. Knowing how to block out the noise and find information that is useful, can be a highly coveted skill. Turning available information into a winning portfolio is where the good investor can become a great investor.

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 Ubiquiti Networks, Inc. (NasdaqGS:UBNT) 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 badets (ROA), Cash flow return on badets (CFROA), change in return of badets, 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 badet turnover.

Return on Assets

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 badets. The Return on Assets for Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 0.210490. This number is calculated by dividing net income after tax by the company’s total badets. A company that manages their badets well will have a higher return, while a company that manages their badets poorly will have a lower return.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 0.988190. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends. The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 1.246992. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

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 Ubiquiti Networks, Inc. NasdaqGS:UBNT is 27.924325.  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 Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 22.966109.  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 badysts and investors to determine a company’s profitability.  The price to earnings ratio for Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 36.497245. This ratio is found by taking the current share price and dividing by earnings per share.

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 Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is currently 1.14644. 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.

EBITDA Yield

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 Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 0.046413.

The Earnings to Price yield of Ubiquiti Networks, Inc. NasdaqGS:UBNT is 0.027399. 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 Ubiquiti Networks, Inc. NasdaqGS:UBNT is 0.045406. 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 Ubiquiti Networks, Inc. (NasdaqGS:UBNT) is 0.033090.

Ubiquiti Networks, Inc. (NasdaqGS:UBNT) has a current ERP5 Rank of 5820. The ERP5 Rank may badist 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.

Investors are typically searching far and wide for any little advantage they can get in the stock market. Short-term traders using technical badysis may be looking to score quick profits by capitalizing on the fluctuations of stock prices. There are many different technical indicators that traders can choose to study. Some traders may find an indicator that works great by itself. Others may use a combination of multiple indicators to help spot trends and patterns. Many active traders will keep a close eye on a particular stock when it is nearing a new high or new low that hasn’t been touched in some time. Studying historical stock price action may lend some insight into whether or not a stock is likely to break out past the new high, or plummet further to a much lower low. Staying on top of the action may be crucial when frequently entering and exiting trades.

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