In the hot seat: Scales Corporation Limited (NZSE: SCL) Quant signals under the microscope



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Scales Corporation Limited (NZSE: SCL) has a current MF ranking of 4693. 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 profit-return ratios to find undervalued quality stocks. In general, companies with the lowest combined rank may be superior choices.

Investors may be interested in seeing the gross margin score on the shares of Scales Corporation Limited (NZSE: SCL). The name currently has a score of 50.00000. This score is derived from the stability and growth of the gross margin (Marx) over the previous eight years. The gross margin score is on a scale of 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be considered negative.

There are many different tools for determining whether a business is profitable or not. One of the most popular ratios is the "Return on Assets" (ROA). This score indicates the profitability of a company in relation to its total assets. The return on assets of Scales Corporation Limited (NZSE: SCL) is 0.094907. This number is calculated by dividing the net profit after tax by the total assets of the company. A company that manages its assets well will have a higher return, while a company that poorly manages its assets will have a lower return.

The Piotroski F-Score is a scoring system between 1 and 9 that determines the financial strength of a company. The score helps to determine if the stock of a company is valuable or not. The Piotroski F score of Scales Corporation Limited (NZSE: SCL) 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 based on the return on assets (ROA), the return on liquid assets (CFROA), the change in return on assets and the quality of profits. It is also calculated based on the evolution of the debt ratio or the leverage effect, the liquidity and the variation of the shares outstanding. The score is also determined by the change in the gross margin and the change in the turnover

In addition, we can see that Scales Corporation Limited (NZSE: SCL) has a Shareholder Return of 0.040338 and a Shareholder return (Mebane Faber) of 0.02916. The first value is calculated by adding the dividend yield to the percentage of shares redeemed. The second value adds to the return on net debt reimbursed in the calculation. Shareholder return has the ability to show how much money the company is giving back to shareholders through a few different avenues. Companies can issue new shares and buy back their own shares. This can happen at the same time. Investors can also use shareholder returns to evaluate a basic rate of return.

Checking some rating rankings, Scales Corporation Limited (NZSE: SCL) has a Composite Value Rating of 42. Developed by James O 'Shaughnessy, the VC score uses five valuation ratios. These ratios are price / earnings, cash flow, EBITDA to EV, book value and sales price. The resume is displayed in the form of a number between 1 and 100. In general, a firm with a score closer to 0 would be considered undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder return, we can see the Composite Value 2 score that is currently sitting at 33.

Volatility / PI
Stock volatility is a percentage that indicates if a stock is a desirable purchase. Investors are looking at Volatility 12m to determine whether a company has a low percentage of volatility or not during a year. The volatility 12m from Scales Corporation Limited (NZSE: SCL) is 20.783800. This is calculated by taking the weekly normal log yields and the standard deviation of the price of the stock over an annualized year. The lower the number, the lower the volatility. Volatility 3m is a similar percentage determined by the daily normal daily yields and the standard deviation of the price of the stock over 3 months. The volatility 3m from Scales Corporation Limited (NZSE: SCL) is 17.808400. The 6m volatility is the same except measured over a six month period. The Volatility 6m is 17.126900

The Price Index is a ratio that indicates the performance of a course over a past period. The price index of Scales Corporation Limited (NZSE: SCL) for the last month was 1.00123. This is calculated by taking the current stock price and dividing it by the stock price a month ago. If the ratio is greater than 1, it means that there has been an increase in prices during the month. If the ratio is less than 1, then we can determine that there has been a price decrease. Investors also look for stock prices over 12-month periods. The 12m price index for Scales Corporation Limited (NZSE: SCL) is 1.43875.

The price-to-book ratio is the current price of one share of a company divided by the book value per share. The price / book value of Scales Corporation Limited NZSE: SCL is 2.981654. A lower price-to-book ratio indicates that the security may be undervalued. Similarly, the price / cash flow ratio is another useful ratio for determining the value of a business. The price / earnings ratio of Scales Corporation Limited (NZSE: SCL) is 20.401780. This ratio is calculated by dividing the market value of a business by the cash flow from operating activities. In addition, the price / earnings ratio is another popular way for analysts and investors to determine the profitability of a company. The price / earnings ratio of Scales Corporation Limited (NZSE: SCL) is 21.077715. This ratio is calculated by dividing the current share price by the earnings per share.

If certain ROI (Return on Investment) figures are considered, the ROI of Scales Corporation Limited (NZSE: SCL) is 0.1667348. The average over 5 years of ROIC is 0.110940 and the ROIC Quality is 1.782124. The ROI is a profitability ratio that measures the return that an investment generates for those who provide capital. ROIC shows how effective a company is in turning capital into profits.

Free Cash Flow (FCF Growth) growth is the free cash flow of the current year less free cash flow of the prior year, divided by the free cash flow of the previous year. SCALES Corporation Limited's (NZSE: SCL) FCF growth is -0.355042. Free cash flow (FCF) is the cash generated by the corporation less capital expenditures. This money is what a company uses to meet its financial obligations, such as making payments on debt or paying dividends. The Free Cash Flow Score (FCF Score) is a useful tool for calculating the growth of free cash flow with the stability of free cash flow – this gives investors the overall quality of free cash flow. Scales Corporation Limited (NZSE: SCL) has a score of 0.396822. Experts say that the higher the value, the better, because it means that free cash flow is high or the variability in free cash flow is low, or both.

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