total assets – Medielys http://medielys.com/ Tue, 15 Mar 2022 15:00:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://medielys.com/wp-content/uploads/2021/08/favicon-2-150x150.png total assets – Medielys http://medielys.com/ 32 32 Southern Missouri Bancorp: book value increase of more than $4/share per year (NASDAQ: SMBC) https://medielys.com/2022/03/15/southern-missouri-bancorp-book-value-increase-of-more-than-4-share-per-year-nasdaq-smbc/ Tue, 15 Mar 2022 15:00:00 +0000 https://medielys.com/2022/03/15/southern-missouri-bancorp-book-value-increase-of-more-than-4-share-per-year-nasdaq-smbc/ Gwengoat/iStock via Getty Images introduction I’m always interested in finding value in smaller regional banks and it’s too bad Southern Missouri Bancorp (SMBC) doesn’t get more attention here on Seeking Alpha as there has only been one article on this bank for the past 7.5 years. Given the bank’s performance in the first half of […]]]>

Gwengoat/iStock via Getty Images

introduction

I’m always interested in finding value in smaller regional banks and it’s too bad Southern Missouri Bancorp (SMBC) doesn’t get more attention here on Seeking Alpha as there has only been one article on this bank for the past 7.5 years. Given the bank’s performance in the first half of its fiscal year, I believe this regional bank deserves more attention from the investment community.

SMBC Chart

Yahoo finance

A rather strong result in the first half bodes well for the future

Southern Missouri has seen its earnings profile improve in recent quarters as interest income increases while interest expense declines. This translates into higher net interest income and in the first half, SMBC saw its net interest income increase by more than 10% to $50.7 million.

income statement

SMBC Investor Relations

The bank reported total non-interest income of $9.8 million and non-interest expense of $29.3 million, resulting in net non-interest expense of $19.5 million. This means that the provision for pre-tax and pre-loan losses in the first half was about $31 million. Southern Missouri Bancorp was also able to write off just over $0.3 million of previously recorded loan loss provisions, boosting reported pretax profit to $31.5 million and resulting in a net income of $24.7 million, or $2.78 per share.

The second quarter was relatively weaker than the first quarter, with EPS declining from $1.43 to $1.35 due to slightly lower net interest income and no provision reversal of 0 $.3 million which was fully recorded in the first quarter of the year.

Southern Missouri pays only a nominal dividend and the $0.20 per share on a quarterly basis represents a dividend yield of just over 1.5%. That means Southern Missouri isn’t exactly a good fit for an income-focused portfolio, but it also means the dividend is extremely safe. The payout ratio in the first half was below 15%, and even in the weaker second quarter of the year the payout ratio did not exceed 15%. Low yield, but sure yield.

I like exposure to residential real estate

When I look at these regional banks, I’m always keen to see what the asset side of the balance sheet looks like. As explained in a previous article on PCB Bancorp, I don’t necessarily mind higher exposure to, say, commercial real estate as long as LTV ratios are reasonable as a local bank may have a better view of the local real estate market .

On the asset side of the balance sheet

SMBC Investor Relations

Looking at Southern Missouri’s balance sheet, of the $2.92 billion in total assets, about $400 million was in fairly safe assets with nearly $185 million in cash and over $200 million in securities that are supposed to be rather liquid. I mainly want to zoom in on the $2.36 billion loan book to see the breakdown.

Breakdown of loan portfolio

SMBC Investor Relations

I was pleasantly surprised to see that about a third of the loan portfolio consists of residential real estate and another 40% is focused on commercial real estate loans. This should not be a deterrent as the most important factor here is to see what percentage of the loan portfolio is outstanding and what percentage of the loans are past due.

Lending book quality

SMBC Investor Relations

According to footnotes to the financial statements, Southern Missouri Bancorp customers appear to be making their payments on time. Of the total loan portfolio size of nearly $2.4 billion, only $3.3 billion of loans are classified as delinquent. This means that 99.85% of loans are performing, but it also means that the total amount of more than $30 million recorded for future loan losses is more than enough to cover potential problems here. It also explains why Southern Missouri was able to write off some of the historical loan loss provisions because its loan loss provision is high enough to cover current potential issues. There is, however, a point of caution here: under the CARES Act, some borrowers have been allowed to suspend payments due to the impact of COVID-19. That doesn’t mean these borrowers are insolvent because they’re just taking advantage of an opportunity offered by the government, but at the end of 2021, Southern Missouri had $23.7 million in loans that were modified under of the CARES Act. These loans are currently flagged as outstanding, but once the grace period ends, some of these loans may need to be reclassified as past due after a period of time.

Investment thesis

I don’t currently have a long position in Southern Missouri Bancorp, but the bank is definitely on my watch list. The tangible book value per share is currently around $31.5, which means the bank is trading at around 1.6 times its tangible book value, but since the bank retains most of its earnings, the book value tangible book value per share increases by more than $4/year and by the end of calendar year 2023, I expect the tangible book value to exceed $40/share.

Trading at less than 10x earnings and seeing very few loans in arrears, Southern Missouri Bancorp piqued my interest. I noticed there are options available on SMBC so I might try to write an out of the money put on southern Missouri but options are pretty illiquid there isn’t therefore has no guarantee that an order will be affected.

So for now, I’m on the sidelines but I can’t wait to see how the “new” entity after completing the acquisition of Fortune Financial will perform. This was a very small transaction, but will add approximately $250 million to the balance sheet assets.

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Annaly (NLY) Higher estimates for Q4 earnings, NII and lower book value https://medielys.com/2022/02/10/annaly-nly-higher-estimates-for-q4-earnings-nii-and-lower-book-value/ Thu, 10 Feb 2022 08:00:00 +0000 https://medielys.com/2022/02/10/annaly-nly-higher-estimates-for-q4-earnings-nii-and-lower-book-value/ This story originally appeared on Zacks Annaly Capital Management, Inc. NLY announced fourth-quarter 2021 earnings available for distribution (EAD) per share of 28 cents that beat Zacks’ consensus estimate of 26 cents. The figure, however, compares unfavorably to 30 cents in the prior year quarter. – Zacks Net interest income (NII) was $361 million, beating […]]]>

This story originally appeared on Zacks

Annaly Capital Management, Inc. NLY announced fourth-quarter 2021 earnings available for distribution (EAD) per share of 28 cents that beat Zacks’ consensus estimate of 26 cents. The figure, however, compares unfavorably to 30 cents in the prior year quarter.


– Zacks

Net interest income (NII) was $361 million, beating Zacks consensus estimate of $357 million. This figure decreased by 16.6% year-on-year.

With funding costs still low, Annaly experienced an increase in net interest margin. However, NLY saw a year-over-year decline in book value per share (BVPS) and average return on interest-earning assets.

For the full year, Annaly reported EAD per share of $1.16, up 5.5% from the 2020 figure. Net income also beat Zacks consensus estimate of 1.14 $ per share.

The NII for the full year was $1.73 billion, up 30% from the number reported a year ago. Additionally, the 2021 NII was in line with the Zacks consensus estimate.

In the headlines

At the end of the fourth quarter, Annaly had $89.2 billion in total assets, with 91% of invested assets in the Agency’s portfolio. At the end of the quarter, unencumbered assets stood at $9.3 billion.

In the quarter under review, the average return on interest earning assets (excluding premium amortization adjustment or PAA) was 2.63%, down from 2.8% in the prior year quarter . The average economic cost of interest-bearing liabilities was 0.75%, down from 0.87%.

The net interest spread (excluding PAA) of 1.88% for the fourth quarter fell from 1.93% in the prior year quarter. Nevertheless, the net interest margin (excluding PAA) in the current quarter was 2.03%, compared to 1.98% in the fourth quarter of 2020.

Annaly’s BVPS was $7.97 as of December 31, 2021, down sequentially from $8.39. Additionally, BVPS compares unfavorably at $8.92 as of December 31, 2020. At the end of the current quarter, Annaly’s economic capital ratio was 14.4%, compared to 13.6% in the year-ago quarter. former.

For the December quarter, the constant weighted average real prepayment rate was 21.4%, down sequentially from 23.1%.

Economic leverage was 5.7X as of December 31, 2021, compared to 5.8X, sequentially, and 6.2X in the prior year quarter. Annaly generated an annualized EAD return on average equity (excluding PAA) of 13.1% in the fourth quarter, down from 13.03% in the prior year quarter.

Annaly currently wears a Zacks Rank #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive landscape

On January 31, 2022, AGNC Investment Corp. AGNC published its results for the fourth quarter of 2021.

AGNC’s net spread and dollar earnings per common share (excluding estimated “catch-up” bonus amortization costs) of 75 cents per share beat Zacks’ consensus estimate of 66 cents. The reported figure was stable with the fourth quarter 2020 figure.

We now look forward to the release of results from other mortgage REITs, such as Starwood Realty Trust STWD and Invesco Mortgage Capital IVRwhose report is scheduled for February 25 and February 17, respectively.

Starwood Property carries a Zacks Rank #2 (Buy), while Invesco Mortgage has a Zacks Rank #3 (Hold) at present.

The Zacks consensus estimate for Starwood Property’s fourth quarter 2021 earnings has moved 1.9% north to 53 cents over the past month. The same goes for Invesco Mortgage’s earnings for the December 2021 quarter, which were flat at 10 cents over the past month.

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Buy these 5 price-to-book stocks in 2022 for gains https://medielys.com/2022/01/07/buy-these-5-price-to-book-stocks-in-2022-for-gains/ Fri, 07 Jan 2022 14:09:00 +0000 https://medielys.com/2022/01/07/buy-these-5-price-to-book-stocks-in-2022-for-gains/ Value investors have, over the years, favored the price / earnings or P / E ratio as a way to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P / S ratio is taken into account to determine their true value. However, the price-to-book […]]]>

Value investors have, over the years, favored the price / earnings or P / E ratio as a way to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P / S ratio is taken into account to determine their true value.

However, the price-to-book ratio (P / N ratio), while used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with good returns.

The P / B ratio is calculated as below:

P / B ratio = market capitalization / book value of equity

The P / B ratio helps identify low-priced stocks that have high growth prospects. Ford Motor Company F, General Motors Society DG, Invesco IVZ, DXC Technology Company DXC and Atlas Corp. ATCO are just a few of those choices.

What is book value?

There are several ways to define the book value. Book value is the total value that would remain, according to the company’s balance sheet, in the event of immediate bankruptcy. In other words, this is what shareholders would theoretically receive if a company liquidated all of its assets after paying off all of its liabilities.

It is calculated by subtracting total liabilities from total assets of a business. In most cases, this is equivalent to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine the book value.

Understanding the P / B Ratio

By comparing the book value of equity to its market price, we get an idea of ​​whether a company is undervalued or overvalued. However, like the P / E or P / S ratio, it is always best to compare P / N ratios within industries.

An AP / E ratio of less than one means the stock is trading below its book value or the stock is undervalued and therefore is a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P / N ratio of 2 means we pay $ 2 for every $ 1 of book value. Thus, the higher the P / B, the more expensive the action.

But there is a caveat. An AP / E ratio of less than one can also mean that the company is generating low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the share price can be significantly high – thus pushing the P / B ratio to more than one – in the probable event that it has become a takeover target, reason enough to hold the share. ‘action.

In addition, the P / B ratio is not without limits. It is useful for businesses – like finance, investment, insurance, and banking or manufacturing companies – with many liquid / tangible assets on the books. However, this can be misleading for companies with large R&D spending, high debt, service companies, or those with negative profits.

In any case, the ratio is not particularly relevant as a stand-alone number. One should analyze other ratios such as P / E, P / S and debt / equity before making a reasonable investment decision.

Screening parameters

Price to Book (Common Equity) below the X-Industry median: A lower P / B than the industry average implies that there is enough room for the stock to win.

Sales price below the X-Industry median: The P / S ratio determines the market value for every dollar of the company’s sales / revenue – a lower ratio than the industry makes the stock attractive.

Price / profit using an F (1) estimate lower than the X-Industry median: The P / E (F1) ratio values ​​a company based on its current stock price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P / E ratio to the company’s future growth rate. The PEG ratio gives a more complete picture than the P / E ratio. A value less than 1 indicates that the stock is undervalued and that investors should pay less for a stock that has good prospects for earnings growth.

Current price greater than or equal to $ 5: They must all trade at a minimum of $ 5 or more.

Average volume over 20 days greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Rank of Zacks less than or equal to # 2: Zacks Rank # 1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Note Equal to A or B: Our research shows that stocks with a value score of A or B, when combined with a Zacks # 1 or 2 ranking, offer the best opportunities in the value investing space.

Here are our five choices among the 12 actions that qualified the screening:

Ford Motor Company designs, manufactures, markets and services Lincoln cars, trucks, sport utility vehicles, electrified vehicles and luxury vehicles.

Ford Motor has a projected 3 to 5 year EPS growth rate of 24.7%. Ford Motor currently has a Zacks # 1 ranking and a value score of A. You can see The full list of today’s Zacks # 1 Rank stocks here.

Invesco acts as an independent investment manager and offers a wide range of investment products and services. As of September 30, 2021, Invesco had offices in more than 20 countries and assets under management worth $ 1.53 trillion.

Invesco currently has a Zacks Rank # 2 and a Value Score of A. Invesco has a projected 3 to 5 year EPS growth rate of 13.5%.

General Motors Company is one of the largest automobile manufacturers in the world. The leading U.S. automaker aims to spend more than $ 27 billion by 2025 to launch next-generation electric vehicles powered by new, low-cost batteries. General Motors plans to roll out 11 new electric vehicles as part of its ambitious plans through 2025, including at least 20 new models by 2023.

General Motors has a Zacks Rank # 2 and a Value Score of A. Celestica has a 3 to 5 year projected EPS growth rate of 9.9%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank # 2 and a Value Score of A.

DXC Technology Company was formed by the amalgamation of Computer Sciences Corporation (“CSC”) and the Enterprise Services Division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company a a forecast of 3-5- annual EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent owner and manager of container ships.

Atlas Corp. has a projected 3 to 5 year EPS growth rate of 27.9%. Atlas Corp. currently has a Zacks Rank # 1 and a Value Score of A.

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Click here to sign up for a free trial of the Research Assistant today.

Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Buy These 5 Stock Price / Book Value in 2022 for Gains – January 7, 2022 https://medielys.com/2022/01/07/buy-these-5-stock-price-book-value-in-2022-for-gains-january-7-2022/ Fri, 07 Jan 2022 13:33:10 +0000 https://medielys.com/2022/01/07/buy-these-5-stock-price-book-value-in-2022-for-gains-january-7-2022/ [ad_1] Value investors have, over the years, favored the price / earnings or P / E ratio as a way to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P / S ratio is taken into account to determine their true value. However, the […]]]>


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Value investors have, over the years, favored the price / earnings or P / E ratio as a way to identify value stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P / S ratio is taken into account to determine their true value.

However, the price-to-book ratio (P / N ratio), while used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with good returns.

The P / B ratio is calculated as below:

P / B ratio = market capitalization / book value of equity

The P / B ratio helps identify low-priced stocks that have high growth prospects. Ford Motor Company (F Free report), General Motors Society (DG Free report), Invesco (IVZ Free report), DXC Technology Company (DXC Free report) and Atlas Corp. (ATCO Free Report) are just a few of those choices.

What is book value?

There are several ways to define the book value. Book value is the total value that would remain, according to the company’s balance sheet, in the event of immediate bankruptcy. In other words, this is what shareholders would theoretically receive if a company liquidated all of its assets after paying off all of its liabilities.

It is calculated by subtracting total liabilities from total assets of a business. In most cases, this is equivalent to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine the book value.

Understanding the P / B Ratio

By comparing the book value of equity to its market price, we get an idea of ​​whether a company is undervalued or overvalued. However, like the P / E or P / S ratio, it is always best to compare P / N ratios within industries.

An AP / E ratio of less than one means the stock is trading below its book value or the stock is undervalued and therefore is a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P / N ratio of 2 means we pay $ 2 for every $ 1 of book value. Thus, the higher the P / B, the more expensive the action.

But there is a caveat. An AP / E ratio of less than one can also mean that the company is generating low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the share price can be significantly high – thus pushing the P / B ratio to more than one – in the probable event that it has become a takeover target, reason enough to hold the share. ‘action.

In addition, the P / B ratio is not without limits. It is useful for businesses – like finance, investment, insurance, and banking or manufacturing companies – with many liquid / tangible assets on the books. However, this can be misleading for companies with large R&D spending, high debt, service companies, or those with negative profits.

In any case, the ratio is not particularly relevant as a stand-alone number. One should analyze other ratios such as P / E, P / S and debt / equity before making a reasonable investment decision.

Screening parameters

Price to Book (Common Equity) below the X-Industry median: A lower P / B than the industry average implies that there is enough room for the stock to win.

Sales price below the X-Industry median: The P / S ratio determines the market value for every dollar of the company’s sales / revenue – a lower ratio than the industry makes the stock attractive.

Price / profit using an F (1) estimate lower than the X-Industry median: The P / E (F1) ratio values ​​a company based on its current stock price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P / E ratio to the company’s future growth rate. The PEG ratio gives a more complete picture than the P / E ratio. A value less than 1 indicates that the stock is undervalued and that investors should pay less for a stock that has good prospects for earnings growth.

Current price greater than or equal to $ 5: They must all trade at a minimum of $ 5 or more.

Average volume over 20 days greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Rank of Zacks less than or equal to # 2: Zacks Rank # 1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score Equal to A or B: Our research shows that stocks with a value score of A or B, when combined with a Zacks # 1 or 2 ranking, offer the best opportunities in the investment space. valuable.

Here are our five choices among the 12 actions that qualified the screening:

Ford Motor Company designs, manufactures, markets and services Lincoln cars, trucks, sport utility vehicles, electrified vehicles and luxury vehicles.

Ford Motor has a projected 3 to 5 year EPS growth rate of 24.7%. Ford Motor currently has a Zacks Rank # 1 and Value Score of A. You can see the full list of Zacks # 1 Rank stocks today here.

Invesco acts as an independent investment manager and offers a wide range of investment products and services. As of September 30, 2021, Invesco had offices in more than 20 countries and assets under management worth $ 1.53 trillion.

Invesco currently has a Zacks Rank # 2 and a Value Score of A. Invesco has a projected 3 to 5 year EPS growth rate of 13.5%.

General Motors Company is one of the largest automobile manufacturers in the world. The leading U.S. automaker aims to spend more than $ 27 billion by 2025 to launch next-generation electric vehicles powered by new, low-cost batteries. General Motors plans to roll out 11 new electric vehicles as part of its ambitious plans through 2025, including at least 20 new models by 2023.

General Motors has a Zacks Rank # 2 and a Value Score of A. Celestica has a 3 to 5 year projected EPS growth rate of 9.9%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank # 2 and a Value Score of A.

DXC Technology Company was formed by the amalgamation of Computer Sciences Corporation (“CSC”) and the Enterprise Services Division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company a a forecast of 3-5- annual EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent owner and manager of container ships.

Atlas Corp. has a projected 3 to 5 year EPS growth rate of 27.9%. Atlas Corp. currently has a Zacks Rank # 1 and a Value Score of A.

Get the rest of the actions on the list and start testing this idea and others. All of this can be done with Research Wizard stock picking and backtesting software.

The Research Assistant is a great place to start. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your research assistant trial today. And the next time you read an economic report, open the research assistant, plug in your findings, and see what gems come out of it.

Click here to sign up for a free trial of the Research Assistant today.

Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance

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Buy These 5 Price-to-Book Value Stocks in 2022 for Gains https://medielys.com/2022/01/07/buy-these-5-price-to-book-value-stocks-in-2022-for-gains/ Fri, 07 Jan 2022 08:00:00 +0000 https://medielys.com/2022/01/07/buy-these-5-price-to-book-value-stocks-in-2022-for-gains/ Value investors have over the years preferred the price-to-earnings or P/E ratio as a way to identify value-oriented stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P/S ratio is taken into account to determine their true value. However, the price-to-book ratio (P/B ratio), although used less […]]]>

Value investors have over the years preferred the price-to-earnings or P/E ratio as a way to identify value-oriented stocks. However, in the case of loss-making companies that have a negative price-to-earnings ratio, the price-to-sales or P/S ratio is taken into account to determine their true value.

However, the price-to-book ratio (P/B ratio), although used less often, is also an easy-to-use valuation tool for identifying low-priced stocks with excellent returns.

The P/B ratio is calculated as follows:

P/B ratio = market capitalization / book value of equity

The P/B ratio helps identify low-priced stocks that have high growth prospects. Ford Motor Company F, General Motors Society GM, Invesco IVZ, DXC Technology Company DXC and Atlas Corp. ATCO are some of those choices.

What is the book value?

There are several ways to define book value. Book value is the total value that would remain, according to the company’s balance sheet, if it went bankrupt immediately. In other words, it’s what shareholders would theoretically receive if a company liquidated all of its assets after settling all of its liabilities.

It is calculated by subtracting the total liabilities from the total assets of a business. In most cases, this equates to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P/B ratio

By comparing the book value of equity to its market price, we get an idea if a company is undervalued or overvalued. However, like the P/E or P/S ratio, it is always best to compare P/B ratios within industries.

An AP/B ratio of less than one means the stock is trading at a price below its book value, or the stock is undervalued and therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a caveat. An AP/B ratio of less than one can also mean that the company is getting low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the stock price can be significantly high – thus pushing the P/B ratio to more than one – in the likely event that it has become a buyout target, reason enough to hold the stock. .

Moreover, the P/B ratio is not without limits. It is useful for businesses – like finance, investments, insurance and banking or manufacturing companies – with many liquid/tangible assets on the books. However, this can be misleading for companies with large R&D expenses, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a stand-alone number. Other ratios such as P/E, P/S and debt/equity should be analyzed before making a reasonable investment decision.

Screening Parameters

Price to Book (common Equity) below the X-Industry median: A lower P/B relative to the industry average implies that there is enough room for the stock to win.

Selling price below median X-Industry: The P/S ratio determines how much the market values ​​each dollar of the company’s sales/revenue – a lower ratio than the industry makes the stock attractive.

Price/earnings ratio using F(1) estimate below industry median X: The P/E (F1) ratio values ​​a company based on its current share price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P/E ratio to the future growth rate of the company. The PEG ratio gives a more complete picture than the P/E ratio. A value below 1 indicates the stock is undervalued and investors should pay less for a stock that offers good earnings growth prospects.

Current price greater than or equal to $5: They must all trade at a minimum of $5 or more.

Average volume over 20 days greater than or equal to 100,000: Substantial trading volume ensures that the stock is easily tradable.

Zacks rating less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score of A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks #1 or 2 ranking, offer the best opportunities in the investment space valuable.

Here are our five picks from the 12 stocks that qualified the selection:

Ford Motor Company designs, manufactures, markets and services Lincoln cars, trucks, sport utility vehicles, electrified vehicles and luxury vehicles.

Ford Motor forecasts an EPS growth rate of 24.7% over 3 to 5 years. Ford Motor currently has a Zacks Rank #1 and a Value Score of A. You can see the full list of today’s Zacks Rank #1 stocks here.

Invesco operates as an independent investment manager and offers a wide range of investment products and services. As of September 30, 2021, Invesco had offices in over 20 countries and an AUM worth $1.53 trillion.

Invesco currently has a Zacks No. 2 ranking and a value score of A. Invesco has an expected EPS growth rate of 13.5% over 3-5 years.

General Motors Company is one of the largest automobile manufacturers in the world. The top US automaker aims to spend more than $27 billion through 2025 to launch next-generation electric vehicles powered by new low-cost batteries. General Motors plans to roll out 11 new electric vehicles as part of its ambitious plans through 2025, including at least 20 new models by 2023.

General Motors has a Zacks rank of No. 2 and a value score of A. Celestica has an expected 3-5 year EPS growth rate of 9.9%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank #2 and a Value Score of A.

DXC Technology Company was formed by the merger of Computer Sciences Corporation (“CSC”) and the business services division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company has a forecast of 3-5-year EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent charterer and manager of container ships.

Atlas Corp. forecast an EPS growth rate of 27.9% over 3 to 5 years. Atlas Corp. currently has a Zacks rank #1 and a value score of A.

Get the rest of the stocks on the list and start testing this idea and others. All of this can be done with Research Wizard stock picking and back testing software.

The research assistant is a great starting point. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your search assistant trial today. And the next time you’re reading an economic report, open up the research assistant, plug in your findings, and see what gems come out.

Click here to sign up for a free trial of Research Assistant today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold securities short and/or hold long and/or short positions in the options mentioned herein. An affiliated investment advisory firm may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

Disclosure: Information on the performance of Zacks portfolios and strategies is available at: https://www.zacks.com/performance

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

Ford Motor Company (F): Free Inventory Analysis Report

Invesco Ltd. (IVZ): Free Stock Analysis Report

General Motors Company (GM): Free Inventory Analysis Report

DXC technology company. (DXC): Free Stock Analysis Report

Atlas Corp. (ATCO): Free Inventory Analysis Report

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]]>
5 low book value stocks to buy as 2022 approaches https://medielys.com/2021/12/22/5-low-book-value-stocks-to-buy-as-2022-approaches/ Wed, 22 Dec 2021 15:02:49 +0000 https://medielys.com/2021/12/22/5-low-book-value-stocks-to-buy-as-2022-approaches/

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In value analysis, although price-to-earnings (P / E) and price-to-sell (P / S) are the most popular with investors, price-to-book ratio (P / B ratio) under – rated is also an easy to use tool. valuation tool to identify low-priced stocks with exceptional returns. The ratio is used to compare the value / market price of a stock to its book value.

The P / B ratio is calculated as below:

P / B ratio = market price per share / book value of equity per share

The P / B ratio reflects the number of times book value investors are willing to pay for a stock. So if the stock price is $ 10 and the book value of equity is $ 5, investors are willing to pay twice the book value. Now let’s understand the concept of book value.

The P / B ratio helps identify low-priced stocks that have high growth prospects. ASE Technology Holding ASX, Bookmark Jewelers Limited GIS, Celestica CLS, DXC Technology Company DXC and Atlas Corp. ATCO are just a few of those choices.

What is book value?

There are several ways to define the book value. Book value is the total value that would remain, according to the company’s balance sheet, in the event of immediate bankruptcy. In other words, this is what shareholders would theoretically receive if a company liquidated all of its assets after paying off all of its liabilities.

It is calculated by subtracting total liabilities from total assets of a business. In most cases, this is equivalent to common shareholders’ equity on the balance sheet. However, depending on the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P / B Ratio

By comparing the book value of equity to its market price, we get an idea of ​​whether a company is undervalued or overvalued. However, like the P / E or P / S ratio, it is always best to compare P / N ratios within industries.

An AP / E ratio of less than one means the stock is trading below its book value or the stock is undervalued and therefore is a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P / N ratio of 2 means we pay $ 2 for every $ 1 of book value. Thus, the higher the P / B, the more expensive the action.

But there is a caveat. An AP / E ratio of less than one can also mean that the company is generating low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the share price can be significantly high – thus pushing the P / B ratio to more than one – in the probable event that it has become a takeover target, reason enough to hold the share. ‘action.

In addition, the P / B ratio is not without limits. It is useful for businesses – like finance, investment, insurance, and banking or manufacturing companies – with many liquid / tangible assets on the books. However, this can be misleading for companies with large R&D spending, high debt, service companies, or those with negative profits.

In any case, the ratio is not particularly relevant as a stand-alone number. One should analyze other ratios such as P / E, P / S and debt / equity before making a reasonable investment decision.

Screening parameters

Price to Book (Common Equity) below the X-Industry median: A lower P / B than the industry average implies that there is enough room for the stock to win.

Sales price below the X-Industry median: The P / S ratio determines the market value for every dollar of the company’s sales / revenue – a lower ratio than the industry makes the stock attractive.

Price / profit using an F (1) estimate lower than the X-Industry median: The P / E (F1) ratio values ​​a company based on its current share price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P / E ratio to the company’s future growth rate. The PEG ratio gives a more complete picture than the P / E ratio. A value less than 1 indicates that the stock is undervalued and that investors should pay less for a stock that has good prospects for earnings growth.

Current price greater than or equal to $ 5: They must all trade at a minimum of $ 5 or more.

Average volume over 20 days greater than or equal to 100,000: A substantial trading volume ensures that the stock is easily tradable.

Rank of Zacks less than or equal to # 2: Zacks Rank # 1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score Equal to A or B: Our research shows that stocks with a value score of A or B, when combined with a Zacks # 1 or 2 ranking, offer the best opportunities in the investment space. valuable.

Here are our five choices among the 13 actions that qualified the screening:

ASE Technology Holding is a semiconductor assembly and test manufacturing service provider.

ASE Technology Holding has a projected 3 to 5 year EPS growth rate of 26.9%. ASE Technology Holding currently has a Zacks Rank # 2 and a Value Score of A. You can view the full list of Zacks # 1 Rank stocks today here.

Jewelers Signet rings Limited is a retailer of diamond jewelry, watches and other products. Signet Jewelers has a projected 3 to 5 year EPS growth rate of 8.0%.

Signet Jewelers currently has a Zacks # 1 rank and a value score of A.

Celestica is one of the largest electronics manufacturing services companies in the world, serving the computer and communications industries.

Celestica has a Zacks Rank # 2 and a Value Score of A. Celestica has a projected 3 to 5 year EPS growth rate of 10.2%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank # 2 and a Value Score of A.

DXC Technology Company was formed by the amalgamation of Computer Sciences Corporation (“CSC”) and the Enterprise Services Division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company a a forecast of 3-5- annual EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent owner and manager of container ships.

Atlas Corp. has a projected 3 to 5 year EPS growth rate of 27.9%. Atlas Corp currently has a Zacks Rank # 1 and a Value Score of A.

Get the rest of the actions on the list and start testing this idea and others. All of this can be done with Research Wizard stock picking and backtesting software.

The Research Assistant is a great place to start. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your research assistant trial today. And the next time you read an economic report, open the research assistant, plug in your findings, and see what gems come out of it.

Click here to sign up for a free trial of the Research Assistant today.

Disclosure: Officers, directors and / or employees of Zacks Investment Research may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document. An affiliated investment advisory firm may own or have sold securities short and / or hold long and / or short positions in options mentioned in this document.

Disclosure: Information on the performance of Zacks’ portfolios and strategies can be found at: https://www.zacks.com/performance

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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5 Low Price-to-Book Stocks to Buy in December – December 7, 2021 https://medielys.com/2021/12/07/5-low-price-to-book-stocks-to-buy-in-december-december-7-2021/ Tue, 07 Dec 2021 08:00:00 +0000 https://medielys.com/2021/12/07/5-low-price-to-book-stocks-to-buy-in-december-december-7-2021/ The price-to-book (P/B) ratio is widely favored by value-oriented investors to identify low-priced stocks offering exceptional returns. The ratio is used to compare the market value/price of a stock to its book value. The P/B ratio is calculated as follows: P/B ratio = market price per share / book value of equity per share The […]]]>

The price-to-book (P/B) ratio is widely favored by value-oriented investors to identify low-priced stocks offering exceptional returns. The ratio is used to compare the market value/price of a stock to its book value.

The P/B ratio is calculated as follows:

P/B ratio = market price per share / book value of equity per share

The P/B ratio reflects the number of times investors’ book value is willing to pay for a stock. So if the stock price is $10 and the equity book value is $5, investors are willing to pay double the book value. Ideally, a P/B value below 1.0 is considered good, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value below 3.0.

The P/B ratio helps identify low-priced stocks that have high growth prospects. ESA Technology (ASX free report), Knowledge base home (KBH free report), celestial (CLS free report), DXC Technology Company (DXC free report) and Atlas Corp. (ATCO Free Report) are some of those choices.

What is the book value?

There are several ways to define book value. Book value is the total value that would remain, according to the company’s balance sheet, if it went bankrupt immediately. In other words, it’s what shareholders would theoretically receive if a company liquidated all of its assets after settling all of its liabilities.

It is calculated by subtracting the total liabilities from the total assets of a business. In most cases, this equates to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P/B ratio

By comparing the book value of equity to its market price, we get an idea if a company is undervalued or overvalued. However, like the P/E or P/S ratio, it is always best to compare P/B ratios within industries.

An AP/B ratio of less than one means the stock is trading at a price below its book value, or the stock is undervalued and therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a caveat. An AP/B ratio of less than one can also mean that the company is getting low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the price of the stock may be significantly high – thereby pushing the P/B ratio to more than one – in the likely event that it has become a buyout target, reason enough to hold the stock. .

Moreover, the P/B ratio is not without limits. It is useful for businesses – such as finance, investments, insurance, and banking or manufacturing companies – with many liquid/tangible assets on the books. However, this can be misleading for companies with large R&D expenses, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a stand-alone number. Other ratios such as P/E, P/S and debt/equity should be analyzed before making a reasonable investment decision.

Screening Parameters

Price to Book (common Equity) below the X-Industry median: A lower P/B relative to the industry average implies that there is enough room for the stock to win.

Selling price below median X-Industry: The P/S ratio determines how much the market values ​​each dollar of the company’s sales/revenue – a lower ratio than the industry makes the stock attractive.

Price/earnings ratio using F(1) estimate below industry median X: The P/E (F1) ratio values ​​a company based on its current share price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P/E ratio to the future growth rate of the company. The PEG ratio gives a more complete picture than the P/E ratio. A value below 1 indicates the stock is undervalued and investors should pay less for a stock that offers good earnings growth prospects.

Current price greater than or equal to $5: They must all trade at a minimum of $5 or more.

Average volume over 20 days greater than or equal to 100,000: Substantial trading volume ensures that the stock is easily tradable.

Zacks rating less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score of A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks #1 or 2 ranking, offer the best opportunities in the investment space valuable.

Here are our five picks from the 15 stocks that qualified the selection:

ASE Technology Holding is a provider of semiconductor manufacturing services in the areas of assembly and testing.

ASE Technology Holding forecasts an EPS growth rate of 26.9% over 3 to 5 years. ASE Technology Holding currently has a Zacks Rank #2 and a Value Score of A. You can see the full list of today’s Zacks Rank #1 stocks here.

Knowledge base home is a well-known home builder in the United States and one of the largest in the United States. KB Home forecasts an EPS growth rate of 36.7% over 3 to 5 years.

KB Home currently has a Zacks Rank #2 and a Value Score of A.

celestial is one of the world’s largest electronics manufacturing services companies, serving the computer and communications industries.

Celestica has a Zacks rank of No. 2 and a value score of A. Celestica has an expected 3-5 year EPS growth rate of 10.2%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank #2 and a Value Score of A.

DXC Technology Company was formed by the merger of Computer Sciences Corporation (“CSC”) and the business services division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company has a forecast of 3-5-year EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent charterer and manager of container ships.

Atlas Corp. forecast an EPS growth rate of 27.9% over 3 to 5 years. Atlas Corp currently has a Zacks Rank #1 and a Value Score of A.

Get the rest of the stocks on the list and start testing this idea and others. All of this can be done with Research Wizard stock picking and back testing software.

The research assistant is a great starting point. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your search assistant trial today. And the next time you’re reading an economic report, open up the research assistant, plug in your findings, and see what gems come out.

Click here to sign up for a free trial of Research Assistant today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in the options mentioned herein. An affiliated investment adviser may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

Disclosure: Information on the performance of Zacks portfolios and strategies is available at: https://www.zacks.com/performance

]]>
5 Low Price-to-Book Stocks to Buy in December https://medielys.com/2021/12/07/5-low-price-to-book-stocks-to-buy-in-december/ Tue, 07 Dec 2021 08:00:00 +0000 https://medielys.com/2021/12/07/5-low-price-to-book-stocks-to-buy-in-december/ The price-to-book (P/B) ratio is widely favored by value-oriented investors to identify low-priced stocks offering exceptional returns. The ratio is used to compare the market value/price of a stock to its book value. The P/B ratio is calculated as follows: P/B ratio = market price per share / book value of equity per share The […]]]>

The price-to-book (P/B) ratio is widely favored by value-oriented investors to identify low-priced stocks offering exceptional returns. The ratio is used to compare the market value/price of a stock to its book value.

The P/B ratio is calculated as follows:

P/B ratio = market price per share / book value of equity per share

The P/B ratio reflects the number of times investors’ book value is willing to pay for a stock. So if the stock price is $10 and the equity book value is $5, investors are willing to pay double the book value. Ideally, a P/B value below 1.0 is considered good, indicating a potentially undervalued stock. However, value investors often consider stocks with a P/B value below 3.0.

The P/B ratio helps identify low-priced stocks that have high growth prospects. ESA Technology ASX, Knowledge base home KBH, celestial CLS, DXC Technology Company DXC and Atlas Corp. ATCO are some of those choices.

What is the book value?

There are several ways to define book value. Book value is the total value that would remain, according to the company’s balance sheet, if it went bankrupt immediately. In other words, it’s what shareholders would theoretically receive if a company liquidated all of its assets after settling all of its liabilities.

It is calculated by subtracting the total liabilities from the total assets of a business. In most cases, this equates to common shareholders’ equity on the balance sheet. However, according to the company’s balance sheet, intangible assets must also be subtracted from total assets to determine book value.

Understanding the P/B ratio

By comparing the book value of equity to its market price, we get an idea if a company is undervalued or overvalued. However, like the P/E or P/S ratio, it is always best to compare P/B ratios within industries.

An AP/B ratio of less than one means the stock is trading at a price below its book value, or the stock is undervalued and therefore a good buy. Conversely, a stock with a ratio greater than one can be interpreted as being overvalued or relatively expensive.

For example, a stock with a P/B ratio of 2 means we pay $2 for every $1 of book value. Thus, the higher the P/B, the more expensive the stock.

But there is a caveat. An AP/B ratio of less than one can also mean that the company is getting low or even negative returns on its assets or that the assets are overvalued, in which case the stock should be avoided as it can destroy shareholder value. Conversely, the price of the stock may be significantly high – thereby pushing the P/B ratio to more than one – in the likely event that it has become a buyout target, reason enough to hold the stock. .

Moreover, the P/B ratio is not without limits. It is useful for businesses – like finance, investments, insurance and banking or manufacturing companies – with many liquid/tangible assets on the books. However, this can be misleading for companies with large R&D expenses, high debt, service companies, or those with negative earnings.

In any case, the ratio is not particularly relevant as a stand-alone number. Other ratios such as P/E, P/S and debt/equity should be analyzed before making a reasonable investment decision.

Screening Parameters

Price to Book (common Equity) below the X-Industry median: A lower P/B relative to the industry average implies that there is enough room for the stock to win.

Selling price below median X-Industry: The P/S ratio determines how much the market values ​​each dollar of the company’s sales/revenue – a lower ratio than the industry makes the stock attractive.

Price/earnings ratio using F(1) estimate below industry median X: The P/E (F1) ratio values ​​a company based on its current share price relative to its estimated earnings per share – a lower ratio than the industry is considered better.

PEG less than 1: The PEG relates the P/E ratio to the future growth rate of the company. The PEG ratio gives a more complete picture than the P/E ratio. A value below 1 indicates the stock is undervalued and investors should pay less for a stock that offers good earnings growth prospects.

Current price greater than or equal to $5: They must all trade at a minimum of $5 or more.

Average volume over 20 days greater than or equal to 100,000: Substantial trading volume ensures that the stock is easily tradable.

Zacks rating less than or equal to #2: Zacks Rank #1 (Strong Buy) or 2 (Buy) stocks are known to outperform regardless of the market environment.

Value Score of A or B: Our research shows that stocks with a Value Score of A or B, when combined with a Zacks #1 or 2 ranking, offer the best opportunities in the investment space valuable.

Here are our five picks from the 15 stocks that qualified the selection:

ASE Technology Holding is a provider of semiconductor manufacturing services in the areas of assembly and testing.

ASE Technology Holding forecasts an EPS growth rate of 26.9% over 3 to 5 years. ASE Technology Holding currently has a Zacks Rank #2 and a Value Score of A. You can see the full list of today’s Zacks Rank #1 stocks here.

Knowledge base home is a well-known home builder in the United States and one of the largest in the United States. KB Home forecasts an EPS growth rate of 36.7% over 3 to 5 years.

KB Home currently has a Zacks Rank #2 and a Value Score of A.

celestial is one of the world’s largest electronics manufacturing services companies, serving the computer and communications industries.

Celestica has a Zacks rank of No. 2 and a value score of A. Celestica has an expected 3-5 year EPS growth rate of 10.2%.

DXC Technology Company provides information technology services and solutions primarily in North America, Europe, Asia and Australia. DXC Technology Company has a Zacks Rank #2 and a Value Score of A.

DXC Technology Company was formed by the merger of Computer Sciences Corporation (“CSC”) and the business services division of Hewlett Packard Enterprise (“HPE”), which was completed on April 1, 2017. DXC Technology Company has a forecast of 3-5-year EPS growth rate of 27.4%.

Atlas Corp. is an asset management company, which operates as an independent charterer and manager of container ships.

Atlas Corp. forecast an EPS growth rate of 27.9% over 3 to 5 years. Atlas Corp currently has a Zacks Rank #1 and a Value Score of A.

Get the rest of the stocks on the list and start testing this idea and others. All of this can be done with Research Wizard stock picking and back testing software.

The research assistant is a great starting point. It’s easy to use. Everything is in plain language. And it’s very intuitive. Start your search assistant trial today. And the next time you’re reading an economic report, open up the research assistant, plug in your findings, and see what gems come out.

Click here to sign up for a free trial of Research Assistant today.

Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in the options mentioned herein. An affiliated investment advisory firm may hold or have shorted securities and/or hold long and/or short positions in options mentioned herein.

Disclosure: Information on the performance of Zacks portfolios and strategies is available at: https://www.zacks.com/performance

Want the latest recommendations from Zacks Investment Research? Today you can download 7 best stocks for the next 30 days. Click to get this free report

KB Home (KBH): Free Stock Analysis Report

Celestica, Inc. (CLS): Free Stock Analysis Report

ASE Technology Holding Co., Ltd. (ASX): Free Stock Analysis Report

DXC technology company. (DXC): Free Stock Analysis Report

Atlas Corp. (ATCO): Free Inventory Analysis Report

To read this article on Zacks.com, click here.

Zacks Investment Research

]]>
What is book value? Definition, how to calculate and FAQ https://medielys.com/2021/11/30/what-is-book-value-definition-how-to-calculate-and-faq/ Tue, 30 Nov 2021 14:29:12 +0000 https://medielys.com/2021/11/30/what-is-book-value-definition-how-to-calculate-and-faq/ [ad_1] Investors looking for a basic valuation of a business can look to its assets and liabilities. Another term for book value is shareholders’ equity. Dominic Diongson; Cloth Contents What is book value? How do you calculate the book value? Why is book value important? Book value vs market value vs intrinsic value, according to […]]]>


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What is book value?

Book value is an accounting measure of a company’s equity. It is a measure used to calculate the valuation of a business based on its assets and liabilities.

If owners or managers were looking to sell their business quickly and had to sort out the valuation, one method would be book value. By going through their balance sheet, they would subtract liabilities from assets, providing an amount of net assets. Another term for book value is shareholders’ equity, which is an item that can be found on the balance sheets of quarterly and annual filings of publicly traded companies with the Securities and Exchange Commission. It is usually found in the assets, liabilities and equity section of the balance sheet.

Net income can play a major role in the book value of a business, and owners or managers generally want their business valuation to increase: the higher the profits, the higher the book value; conversely, a drop in profits can lead to a drop in book value. It’s easier to increase or decrease profits on a quarterly basis because other assets and liabilities tend to fluctuate less than net income.

How do you calculate the book value?

Book value = Assets – Liabilities

2

Book value can be calculated in a simplified way by subtracting a company’s liabilities from its assets. In many cases, however, other items are included in this calculation, and it is not as simple as subtracting the “Total liabilities” item from the “Total assets” item.

In the financial statements of The Coca-Cola Company, for example, equity would be listed as “total equity,” which subtracted all types of liabilities, including long-term debt, from “total equity”. active ”. Amazon lists its equity simply as “total equity”.

Why is book value important?

For startups, book value is a basic metric to measure the valuation of their business. They do not have stocks that are freely traded and, therefore, are priced in the public market. There are other valuation methods for start-ups, of course, but book value provides tangible assets such as equipment, property, and inventory.

A publicly traded company, on the other hand, will have a published market price, giving investors the ability to compare the market value of the company to its book value. Book value tends to be less than market value because shareholders generally place a premium on the price. However, if the book value is greater than the market value then the company would be considered undervalued but, despite this, it is rare to see the book value equal to or less than the market value. However, unusual events such as stock market crashes can cause the market value to drop sharply. At the start of the 2020 pandemic, panic selling caused the stock prices of many companies to plummet, and in late March and early April the market value of some fell below their book value.

It is difficult to predict the assets or liabilities of a business or to gather this information in real time. Investors therefore use the most recent data and combine it with the latest stock price to calculate the price-to-book ratio.

TheStreet Dictionary Terms

Below is a table of the book values ​​of companies at the end of the third quarter of 2021 compared to their market capitalization at the end of November, in billions of dollars.

Form 10-Q Deposits

Society Book value Market valuation

You’re here

27

1140

Amazon

93

1,810

Apple

63

2,630

Coca Cola

24

235

Berkshire Hathaway

481

632

Book value vs market value vs intrinsic value, according to Warren Buffett

In recent decades, famed investor Warren Buffett has placed less emphasis on book value, claiming in Berkshire Hathaway’s annual reports that it is a weak indicator for gauging a company’s value. Instead, he prefers to look at market value and go deeper, intrinsic value, which in layman’s terms, he says, is the present value of money that can be taken out of a business during its life. remaining life.

He used a college degree as an example where the book value was roughly the cost of education, while the intrinsic value was roughly the difference between the graduate’s income over his lifetime and what the graduate would have. been his income during his life without a degree. Buffett focuses on the future (intrinsic) value of a business for its profit potential rather than its historical (book) value. In fact, he goes on to say that book value does not make sense as an indicator of intrinsic value.

Frequently Asked Questions (FAQ)

Here are answers to some of the most frequently asked questions investors have about book value.

Are book value and market value the same?

Market value is calculated by multiplying the number of outstanding shares of a company by the price of its shares, while book value is the difference between its assets and liabilities.

What is book value per share?

Book value per share is calculated by taking equity and dividing it by the number of shares outstanding, which gives book value per share.

What is the price-to-book ratio?

This ratio measures how the market valuation of a company compares to its book value. A high ratio may indicate overvaluation, while a low ratio suggests it is at fair value or undervalued.

How is book value used in calculating return on equity?

Return on equity is calculated by dividing net income by book value.

Can the book value be negative?

Book value can be negative if a company’s liabilities exceed its assets. In many cases, a negative book value could mean that a business is bankrupt.

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Accord Financial reports record revenues, net income, funds employed and book value per common share https://medielys.com/2021/11/04/accord-financial-reports-record-revenues-net-income-funds-employed-and-book-value-per-common-share/ Thu, 04 Nov 2021 11:30:00 +0000 https://medielys.com/2021/11/04/accord-financial-reports-record-revenues-net-income-funds-employed-and-book-value-per-common-share/ [ad_1] TORONTO, November 4, 2021 / CNW / – Accord Financial Corp. (TSX: ACD) today released financial results for the three and nine months ended September 30, 2021. The financial figures presented in this press release are expressed in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards. SUMMARY OF FINANCIAL […]]]>


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TORONTO, November 4, 2021 / CNW / – Accord Financial Corp. (TSX: ACD) today released financial results for the three and nine months ended September 30, 2021. The financial figures presented in this press release are expressed in Canadian dollars and have been prepared in accordance with International Financial Reporting Standards.

SUMMARY OF FINANCIAL RESULTS

Three months ended

September 30

Nine months ended

September 30


2021

2020

2021

2020


$

$

$

$

Average funds employed (millions)

414

327

383

343

Revenue (in thousands)

16,119

12 312

45,015

35,598

Gains (losses) before income tax (in thousands)

3 132

(120)

10 083

(5,209)

Net income (loss) attributable to shareholders (in thousands)

2,643

566

8 313

(968)

Adjusted net income (loss) (in thousands) (note)

2 801

621

8 645

(63)

Earnings (loss) per common share (basic and diluted)

0.31

0.07

0.97

(0.11)

Adjusted earnings (loss) per common share (basic and diluted)

0.33

0.07

1.01

(0.01)

Book value per common share (September 30)



$ 11.31

$ 10.56

Third quarter revenue hits record $ 16,119,000 compared to $ 12,312,000 last year, mainly due to a 27% increase in average funds employed and other income. The average funds employed were $ 414 million during the current quarter compared to $ 327 million last year, ending the quarter at an all-time high $ 437 million.

Net income attributable to shareholders (“shareholders’ net income”) increased from $ 566,000 in the third quarter of last year for $ 2,643,000 in the third quarter of 2021 representing a clear recovery after the negative economic impacts of Covid-19. Earnings per common share (“EPS”) rose to 31 cents compared to 7 cents Last year. Adjusted net income was $ 2,801,000 compared to $ 621,000 in the third quarter of 2020, resulting in adjusted EPS of 33 cents compared to 7 cents Last year.

Revenues and profits for the first nine months reflect a steady growth in funds employed; average funds employed increased by 12% to reach $ 383 million compared to $ 343 million Last year. Portfolio growth and higher yields drove income up 26% to a record high in first nine months $ 45.0 million in 2021 compared to $ 35.6 million Last year. Shareholder net profit hit a record for the first nine months $ 8,313,000 rebound in net shareholder loss of $ 968,000 in 2020. The increase in net income results mainly from higher revenues and a decrease in the provision for losses. BPA was also a record for the first nine months 97 cents compared to a loss per common share (“LPS”) of 11 cents Last year. Adjusted net income for the first nine months of 2021 was a record $ 8,645,000 (EPS adjusted from $ 1.01) compared to an adjusted net loss of $ 63,000 (LPS adjusted from 1 cent) in the first nine months of 2020.

Commenting on the financial results, the President and CEO of the Company, Mr. Simon hitzig, said: “Accord’s strong performance in the third quarter and over nine months puts the company back on its pre-pandemic growth path. Coming out of the economic crisis, Accord has built four consecutive strong quarters, with year-over-year adjusted earnings per share. of $ 1.26. With the economy rebounding, we continue to capitalize on the development of innovative products, our strong market presence and our financial strength. Progress rarely follows a straight line, but the fundamentals are falling into place. ”

Mr. Hitzig added: “Accord’s record performance since the start of the year validates our strategy, and the constant improvement in operational efficiency, diversification and credit quality underpin the foundation, adding an element of strength and stability as we expect continued success in 2022. “

About Accord Financial Corp.
Financial Accord is North America the most dynamic trade finance company providing fast and versatile financing solutions to businesses in transition including factoring, inventory finance, equipment leasing, trade finance and film / media finance . Leveraging our unique combination of financial strength, deep experience and independent thinking, we design winning financial solutions for small and medium businesses, delivered simply, so our clients can thrive. For 43 years, Accord has helped businesses manage their cash flow and maximize financial opportunities.

Note: Non-IFRS measures

The Company’s financial statements have been prepared in accordance with IFRS. The Company uses a number of other financial measures to monitor its performance and believes that these measures may be useful to investors in assessing the operating performance and financial condition of the Company. These measures may not have standardized meanings or calculations as prescribed by IFRS that would ensure consistency between companies using these measures and are therefore considered non-IFRS measures. The non-IFRS measures presented in this press release are as follows:

1) Adjusted net earnings and adjusted EPS. The Company derives these measures from amounts presented in its financial statements prepared in accordance with IFRS. Adjusted net income includes shareholders’ net income before stock-based compensation, business acquisition costs (transaction and integration costs and amortization of intangible assets) and restructuring costs. Adjusted EPS (basic and diluted) is adjusted net income divided by the weighted average number of common shares outstanding (basic and diluted) during the period. Management believes that adjusted net income is a more appropriate measure of operating performance as it excludes items that are not directly related to ongoing operating activities. The following table presents a reconciliation of the Company’s net income to adjusted net income:


Three months ended September 30

Nine months ended September 30


2021

2020

2021

2020


$ ‘000

$ ‘000

$ ‘000

$ ‘000

Shareholders’ net profit:

2,643

566

8 313

(967)

Net tax adjustments:





Restructuring costs

139

186

738

Stock-based compensation expense

13

13

Business acquisition costs

6

55

133

166

Adjusted net profit

2 801

621

8 645

(63)

2) Book value per share – book value is equity and is the same as the net asset value (calculated as total assets less total liabilities) of the Company less non-controlling interests. Book value per share is the book value divided by the number of common shares outstanding on a particular date.

3) Funds employed are the Company’s financial receivables and loans, a measure in accordance with IFRS. The average funds employed are the average financial claims and loans calculated over a given period.

SOURCE Accord Financial Corp.

For more information: please visit www.accordfinancial.com or contact: Stuart Adair, Senior Vice President, Chief Financial Officer, Accord Financial Corp., 602 – 40 Eglinton Avenue East, Toronto, ON M4P 3A2, (416) 642- 5647, [email protected]

Related links

http://www.accordfinancial.com

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