ValueInvest_Pro

Educational material nr.8

Education
NASDAQ:EXEL   Exelixis, Inc
In this article I will tell you about another metrics, which can be usefull at analysis of the company. Based on GuruFocus metrics.


Another metrics from Financial Strenghs metrics:

Piotrowski F-score — used for understanding of the financial strengh of the company. Scores from 0 to 9. 1 score means, that company have one of the characteristics (positive net income, positive ROA, positive Operating Cash Flow, CFO is bigger then net income and other). 9 is the higher rank and means, that company is strong.

Altman Z-score — measure of results of testing company on bankruptsy risk. Higher — means that company is safe.

Beneish M-score — Metric of earning manipulation of the company. If it has negative score — that means, that company does not manipulate of the earnings . It can be analysed with comparison of PE and PE without NRI and PE with Cash Flow.

WACC vs. ROIC — Weighted Average Cost of Capital vs Return On Invested Capital. If ROIC > WACC , that means that investing in this company is effective and profitable, because capital generate profit, which is bigger then cost of capital.

Metrics from Profitability Rank
3-Year Revenue Growth Rate — average revenue growth rate per 3 years. Usual auxilar metric.

3-Year EBITDA Growth Rate — same average meaning of EBITDA per 3 years.

3-Year EPS without NRI Growth Rate - EPS without NRI per 3 years.

This 3-years average metrics are not so important then metrics per 5-10 years, because they have big influence of not-so-far-news/acts of firm.

From Dividend and buyback metrics:
Dividend Yield % - financial ratio, show relation dividends to stock price. Higher — means good, but it depends from company’s situation. For example 0 means, that firm does not pay dividends, but makes re-investments, what have positive influence on company.

Dividend payout ratio — dividends, which payed related to the company net income.

Forward Dividend Yield % - Usually don’t used, from reason of future non-guaranted company work. But it can be usefull for understanding expectation of the market.

5-Year Dividend-on-Cost % - Rarely used, but can be useful in some situations. Dividend divided by price of purchasing of the stock.


They are used from situation in analysing of the company. Because they can add some points to see full situation if main metrics and indicators with financial statement analythis can’t give review of the firm.