Peeling the Layers Back on Sirius XM Holdings Inc. (NasdaqGS:SIRI) and Rite Aid Corporation (NYSE:RAD)

Sirius XM Holdings Inc. (NasdaqGS:SIRI) currently has a Value Composite score of 60.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Sirius XM Holdings Inc. (NasdaqGS:SIRI) is 48.

Stock market players may have differing opinions on which type of research approach is best. Individual investors who prefer buy and hold strategies may be more likely to be studying the fundamentals. Traders that are constantly buying and selling shares may be more concerned with technical analysis. High frequency traders may be willing to take on more risk entering the market. For these types of traders, entry and exit points become far more important. Traders may be relying solely on charts in order to capture profits based on day to day, hour to hour, or minute by minute price fluctuations. Long term investors may not be as concerned with the daily ups and downs of the market. 

Technicals at a Glance
In taking a look at some other notable technicals, Sirius XM Holdings Inc. (NasdaqGS:SIRI)’s ROIC is 0.483007. The ROIC 5 year average is 0.422540 and the ROIC Quality ratio is 5.296507. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

There are many different tools to determine whether a company is profitable or not.  One of the most popular ratios is the “Return on Assets” (aka ROA).  This score indicates how profitable a company is relative to its total assets.  The Return on Assets for Sirius XM Holdings Inc. (NasdaqGS:SIRI) is 0.105610.  This number is calculated by dividing net income after tax by the company’s total assets.  A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Shareholder Yield
We also note that Sirius XM Holdings Inc. (NasdaqGS:SIRI) has a Shareholder Yield of 0.062221 and a Shareholder Yield (Mebane Faber) of 0.03045. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Sirius XM Holdings Inc. (NasdaqGS:SIRI) has a current MF Rank of 3366. 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 earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Price Index
We can now take aquick look at some historical stock price index data. Sirius XM Holdings Inc. (NasdaqGS:SIRI) presently has a 10 month price index of 1.01673. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.20983, the 24 month is 1.46464, and the 36 month is 1.55490. Narrowing in a bit closer, the 5 month price index is 0.97886, the 3 month is 0.96515, and the 1 month is currently 0.96661.

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.  The Piotroski F-Score of Sirius XM Holdings Inc. (NasdaqGS:SIRI) is 7.  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.

Taking a look at valuation rankings for Rite Aid Corporation (NYSE:RAD), we see that the stock has a Value Composite score of 10. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 18.

Stock market investors often rely on fundamental analysis for stock research. The EPS or earnings per share ratio shows the amount of company earnings that can be attributed to every share that is held. EPS lets investors directly compare one company to another when examining potential investments. Investors are typically searching for stocks that have a growing EPS. The EPS measure tends to be more telling when viewed over a longer period of time. When companies report quarterly earnings, the EPS measure is highly scrutinized by investors and analysts alike.

In taking a look at some other notable technicals, Rite Aid Corporation (NYSE:RAD)’s ROIC is 0.122489. The ROIC 5 year average is 0.126379 and the ROIC Quality ratio is 3.719780. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

The Q.i. Value of Rite Aid Corporation (NYSE:RAD) is 27.00000.  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 FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Rite Aid Corporation (NYSE:RAD) is 0.050245. 

Shareholder Yield
We also note that Rite Aid Corporation (NYSE:RAD) has a Shareholder Yield of -0.004789 and a Shareholder Yield (Mebane Faber) of 1.72884. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

MF Rank
Rite Aid Corporation (NYSE:RAD) has a current MF Rank of 4991. 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 earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

PI
We can now take aquick look at some historical stock price index data. Rite Aid Corporation (NYSE:RAD) presently has a 10 month price index of 0.49471. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period.

A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 0.26897, the 24 month is 0.30194, and the 36 month is 0.30039. Narrowing in a bit closer, the 5 month price index is 1.00429, the 3 month is 1.41818, and the 1 month is currently 1.29282.

Leave A Reply

Your email address will not be published.