The Piotroski F-Score of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 4. 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. 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.Accumulating knowledge about the stock market can be a big part of the investment planning process. Proper allocation of equity investments is also an important factor. Finding the proper mix of stocks may end up being more important than the single stocks added to the portfolio. Determining the correct asset allocation can depend on variables such as risk appetite and financial goals. These goals may be short-term, medium term, or longer-term. Investors will often have to determine how aggressive they will be when buying stocks. This can also depend on the overall time horizon and risk tolerance. Some investors might be unfazed by continuous market fluctuations. Others may be much more sensitive, and they may need to adjust their plans accordingly.
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 America’s Car-Mart, Inc. (NasdaqGS:CRMT) is currently 1.05467. 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.
The price to book ratio or market to book ratio for America’s Car-Mart, Inc. (NasdaqGS:CRMT) currently stands at 2.277753. 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.
The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 4608. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.
The Q.i. Value of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 35.00000. The Q.i. Value is a helpful tool in determining if a company is undervalued or not. The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity. The lower the Q.i. value, the more undervalued the company is thought to be.
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 America’s Car-Mart, Inc. (NasdaqGS:CRMT) is -1.00000. 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.
As many veteran investors have already seen, market movements are extremely hard to accurately predict. Financial news outlets are always producing headlines and offering predictions for future market performance. Sometimes the predictions are right, and sometimes the predictions are wrong. Investors may have a hard time separating fact from fiction when it comes to bullish and bearish sentiment. Adjusting the portfolio based strictly on headlines can be tempting for the amateur investor. Filtering out the noise and focusing on the pertinent data can help keep the individual focused and on track. Straying from the plan and basing investment decisions on news headlines may lead to portfolio confusion down the road. Crunching the numbers and paying attention to the important economic data can greatly help the investor see through the smoke when markets get muddled.
Turning to Free Cash Flow Growth (FCF Growth), this 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 America’s Car-Mart, Inc. (NasdaqGS:CRMT) is -1.000000. 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.
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 41.774600. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.
The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 30.737300. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 42.012400.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 37. 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 America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 29.
The ERP5 Rank is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of America’s Car-Mart, Inc. (NasdaqGS:CRMT) is 6367. The lower the ERP5 rank, the more undervalued a company is thought to be.
As we move closer towards the end of the year, investors may be undertaking a portfolio review. Reviewing trades over the past six months, investors should be able to see what has worked and what has not. There might be some stocks that have outperformed the market, and there might be some underperformers as well. Focusing on what has worked so far this year may help provide a clearer picture for future moves. Pinpointing what went wrong can also help the investor see which areas of the portfolio need improvement. If the stock market continues on to reach new heights, investors might be looking to lock in some profits before making the next big trade.