Home Services Home Services Fizzle or Sizzle? What’s Behind the Numbers For ANGI Homeservices Inc. (NasdaqGS:ANGI), Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC)
Home Services - June 14, 2019

Fizzle or Sizzle? What’s Behind the Numbers For ANGI Homeservices Inc. (NasdaqGS:ANGI), Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC)

The Value Composite Two of ANGI Homeservices Inc. (NasdaqGS: ANGI) is 73. The VC2 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield.  Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of ANGI Homeservices Inc. (NasdaqGS: ANGI) is 69.  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 same metrics as VC2, but without taking into consideration shareholder yield.

Individual investors may be going to great lengths to make their hard earned money work for them in the stock market. The stock market can be a scary place for beginners with little to no experience. Studying the ins and outs of the markets can help provide a solid base for the new investor to work with. Many people will jump into the game thinking they are going to easily make large profits in the market. Although this is a possibility, many investors will learn the hard way that sustaining profits over the long-term can be a tough endeavor. Studying all the different company information can take up a lot of time and energy. Some people just don’t have the time they would like to put into stock market study.

 

Shifting gears, we can see that ANGI Homeservices Inc. (NasdaqGS:ANGI) has a Q.i. Value of 49.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

ANGI Homeservices Inc. (NasdaqGS:ANGI) has a current MF Rank of 6480. 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 a quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. ANGI Homeservices Inc. has a current ERP5 Rank of 18857. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5-year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Valuation Scores

At the time of writing, ANGI Homeservices Inc. (NasdaqGS: ANGI) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

ANGI Homeservices Inc. has an M-score Beneish of -2.341641. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of ANGI Homeservices Inc. (NasdaqGS:ANGI). The name currently has a score of 50.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Watching some historical volatility numbers on shares of ANGI Homeservices Inc. (NasdaqGS: ANGI), we can see that the 12-month volatility is presently 46.882300. The 6-month volatility is 40.878800, and the 3 month is spotted at 38.766400. Following volatility, data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

We can now take a quick look at some historical stock price index data. ANGI Homeservices Inc. (NasdaqGS:ANGI) presently has a 10 month price index of 0.76230. 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 0.93283, the 24 month is 1.15361, and the 36 month is 1.15361. Narrowing in a bit closer, the 5-month price index is 0.98925, the 3 month is 0.91429, and the 1 month is currently 0.98264.

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

The Value Composite 2 (VC2) is a ranking system that is calculated by using the price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings and shareholder yield. The Value Composite Two of Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) is 80.   Similarly, the Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 is calculated using the same metrics as VC2, but without taking into consideration shareholder yield. The VC1 of Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) is 77.  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.

Investors studying the fundamentals might be conducting in-depth company research before deciding when to purchase a particular stock. The investor checklist may include studying the scope of a company’s competitive industry advantage, examining company management, and trying to get a general feel if the stock is valued properly. Once the decision is made that the company is a good fit for the portfolio, it may be wise to assess whether or not current conditions and price levels indicate proper levels for share purchase. The timing of purchasing a researched stock obviously comes with some level of trepidation. Investors will only know in the future whether they got in at the right price. A stock that looks very attractive today may not be as attractive in the future. Sometimes the investor will just have to trust their research and instinct when purchasing shares.

Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) has a current MF Rank of 12204. 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. Tabula Rasa HealthCare, Inc. has a current ERP5 Rank of 11995. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Watching some historical volatility numbers on shares of Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC), we can see that the 12 month volatility is presently 54.683200. The 6 month volatility is 61.726100, and the 3 month is spotted at 56.685400. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

We can now take a quick look at some historical stock price index data. Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) presently has a 10 month price index of 0.70503. 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 0.79672, the 24 month is 3.39064, and the 36 month is 3.26075. Narrowing in a bit closer, the 5 month price index is 0.79152, the 3 month is 0.79061, and the 1 month is currently 1.09675.

Valuation Scores

At the time of writing, Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) has a Piotroski F-Score of 3. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.

Tabula Rasa HealthCare, Inc. has an M-score Beneish of -2.391323. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC). The name currently has a score of 50.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Shifting gears, we can see that Tabula Rasa HealthCare, Inc. (NasdaqGM:TRHC) has a Q.i. Value of 60.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

From time to time, investors may need to decide when to sell a winner. This can be one of the tougher portfolio decisions to make. When a winning stock keeps rising, it can be tough to part with it. Investors may become hesitant to sell because they don’t want to miss out on greater profits in the future. Sometimes this strategy will work, and other times investors may be watching all previous gains evaporate. Being able to sell a winner can provide obvious profits, and it may even be a confidence booster for the average investor. On the flip side, investors may also be faced with the decision of when to sell a loser. Even the most researched trades can go sour. Being able to detach from the trade mentally can end up saving the investor more grief down the line. Holding onto a stock with the hopes of a giant turnaround can be a recipe for portfolio disaster. Being able to cut losses is just as much a part of the process as being able to cash in winners. Learning from mistakes and being able to wipe the slate clean can help the investor be better prepared for future endeavors in the markets.