A technical analysis of the profit performance of B2Gold Corp. (TSX: BTO)



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Profit is calculated by taking operating profit or profit before interest and taxes (EBIT) and dividing it by the enterprise value of the company. The return on profits of B2Gold Corp. (TSX: BTO) set at 0.049867. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the five-year average of earnings is the five-year average operating earnings or EBIT divided by the current enterprise value. Earnings return The five-year average for B2Gold Corp. (TSX: BTO) is -0.013216. In addition, the return on earnings per share of B2Gold Corp. TSX: BTO is 0.047330. This is calculated by taking earnings per share and dividing by the last closing price. This is one of the most popular methods used by investors to evaluate the financial performance of a company.

Quantum Signals – Composite Value, C-Score, MF Rank, M-Score, ERP5

Value Composite One (VC1) is a method that investors use to determine the value of a business. The VC1 of B2Gold Corp. (TSX: BTO) is 29. A company with a value of 0 is considered an undervalued company, while a company with a value of 100 is considered an overvalued company. VC1 is calculated using the book value, sales price, EV EBITDA, cash flow price, and profit price. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Return. The composite value of two of B2Gold Corp. (TSX: BTO) is 31.

B2Gold Corp. (TSX: BTO) currently has a Montier C-score of 3.00000. This indicator was developed by James Montier in order to identify companies that were modifying financial figures to better appear on paper. The score ranges from zero to six, where a 0 would indicate no proof of book firing, and a 6 would indicate a high probability of something going wrong. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six entries in the calculation. These inflows included a growing difference between net income and cash flow from operations, increased sales days, higher inventory sales, the increase in other current assets, the decrease in depreciation compared to gross property, plant and equipment.

The MF Rank (aka the Magic Formula) is a formula that identifies a valuable business at a good price. The formula is calculated by looking at companies that have a high return on income as well as a high return on investment. The MF rank of B2Gold Corp. (TSX: BTO) is 8044. A company with a low rank is considered a good company in which to invest. The magic formula was introduced in a book written by Joel Greenblatt, titled, "The Little Book That Beats the Market".

B2Gold Corp. (TSX: BTO) has a Beneish M-score of -2.210789. This M-score model was developed by Messod Beneish to detect the manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish document "Detecting Income Manipulation".

The last signal we are going to look at is the ERP5 Rank. The ERP5 ranking is an investment tool that analysts use to discover undervalued companies. The ERP5 focuses on the price-to-book ratio, the return on earnings, the ROCE and the average ROCE over five years. The ERP5 from B2Gold Corp. (TSX: BTO) is 9288. The lower the ERP5 rank, the more the company is undervalued.

Volatility / PI

Market volatility is a percentage that indicates whether a security 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 of B2Gold Corp. (TSX: BTO) is 31.472100. 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 of B2Gold Corp. (TSX: BTO) is 27.499200. The 6m volatility is the same except measured over a six month period. The Volatility 6m is 33.471100.

We can now take a look at some historical data from the stock index. B2Gold Corp. (TSX: BTO) currently has a 10-month price index of 1.07668. The price index is calculated by dividing the current price of the stock by the stock price ten months ago. A ratio greater than one indicates an increase in the stock price during the period. A ratio below one shows that the price has decreased during this period. Looking at other periods, the 12-month price index is 0.92837, the 24-month is 1.17422 and the 36-month is 1.62802. Getting closer a bit, the 5 month price index is 0.89153, the month of 3.93872 and the month of 0.97681.

ROIC

Return on Invested Capital (or ROIC) for B2Gold Corp. (TSX: BTO) is 0.069820. Return on investment is a ratio that determines whether a business is profitable or not. It tells investors how much a company turns their capital into profits. The ROI is calculated by dividing the net operating profit (or EBIT) by the capital employed. The capital used is calculated by undervaluing the current liabilities of the total assets. Similarly, the return on investment ratio is a tool for assessing the quality of a company's ROI over a five-year period. The ROIC quality of B2Gold Corp. (TSX: BTO) is 3.102635. This is calculated by dividing the five-year average ROI by the five-year ROI standard deviation. The 5-year average ROCE is calculated using the five-year average EBIT, the five-year average (net working capital and net fixed assets). The average over 5 years of the ROIC of B2Gold Corp. (TSX: BTO) is -0.031155

Investors looking to potentially add any value to their portfolio should do all the necessary research before making any investment decision.

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