Are Lassonde Industries Inc. (TSX:LAS.A), CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) Fairly Valued?

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for Lassonde Industries Inc. TSX:LAS.A is 1.899503.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Lassonde Industries Inc. (TSX:LAS.A) is 12.073484.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Lassonde Industries Inc. (TSX:LAS.A) is 13.760100. This ratio is found by taking the current share price and dividing by earnings per share.

Investors are constantly trying to gain any little advantage when it comes to the stock market. Setting realistic goals and staying disciplined when trying to attain those goals can have a positive impact on an investor’s psyche and portfolio performance. Making a couple of badly timed trades can have a drastic effect on the mindset of the investor or trader. Sometimes, investors will have a few missteps that generally include buying when the market is too high, selling when the market is low, or being on the sidelines during a major charge higher. Staying disciplined can help the average investor avoid common pitfalls to help keep the focus in the right direction. When inevitable mistakes are made, investors will have the opportunity to learn from those mistakes and get back on the road to recovery.

Lassonde Industries Inc. (TSX:LAS.A) has a current MF Rank of 3230. 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.

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 Lassonde Industries Inc. (TSX:LAS.A) is 0.082962.  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.

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 Lassonde Industries Inc. (TSX:LAS.A) 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.

Further, we can see that Lassonde Industries Inc. (TSX:LAS.A) has a Shareholder Yield of 0.018206 and a Shareholder Yield (Mebane Faber) of -0.10657. 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.

Volatility/PI
Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Lassonde Industries Inc. (TSX:LAS.A) is 23.829100.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Lassonde Industries Inc. (TSX:LAS.A) is 31.287600.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 28.490500.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Lassonde Industries Inc. (TSX:LAS.A) for last month was 0.86632. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Lassonde Industries Inc. (TSX:LAS.A) is 0.68740.

Checking in on some valuation rankings, Lassonde Industries Inc. (TSX:LAS.A) has a Value Composite score of 26. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 23.

Investors may be interested in viewing the Gross Margin score on shares of Lassonde Industries Inc. (TSX:LAS.A). The name currently has a score of 14.00000. 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.

Following all the day to day information regarding publically traded companies can be challenging. There is rarely any shortage of data that investors can examine when attempting to research specific stocks. One of the greatest challenges for the investor is determining which data to focus on and which data to set aside. Investors will often need to stay aware of happenings in the overall economic environment, and pay attention to global factors that may have a widespread impact on markets. Being aware of the macroeconomic picture can greatly help the investor when making important portfolio decisions.  

The Price to Book ratio for CymaBay Therapeutics, Inc. NasdaqGS:CBAY is 5.292242.  The Price to book ratio is the current share price of a company divided by the book value per share.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is -16.417163.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is -12.431677. This ratio is found by taking the current share price and dividing by earnings per share.

Investors may be trying to decide if it is the right time to enter the equity market. Stocks have been performing well of late, and investors may be eager to catch the next potential move higher. When looking to put money into the stock market, investors might be working hard to create a strategy and choose specific stocks to add to the portfolio. Building a strategy can be tough, but sticking to a strategy can be even tougher. Sticking to the game plan when markets are in flux can greatly improve the investor’s chances of succeeding in the market. 

Further, we can see that CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) has a Shareholder Yield of -0.355075 and a Shareholder Yield (Mebane Faber) of -0.20984. 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.

Checking in on some valuation rankings, CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) has a Value Composite score of 80. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 85.

CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) has a current MF Rank of 16645. 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.

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 CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is -0.695924.  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.

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 CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is 4.  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.

Volatility/PI
Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is 69.414800.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is 65.288400.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 67.043400.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) for last month was 1.40441. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for CymaBay Therapeutics, Inc. (NasdaqGS:CBAY) is 0.96534.

Investors may be interested in viewing the Gross Margin score on shares of CymaBay Therapeutics, Inc. (NasdaqGS:CBAY). The name currently has a score of 67.00000. 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.

When dealing with the volatility and unpredictability of the stock market, investors may have to learn how to deal with their emotions. There are many factors that can have a big impact on the portfolio. Maintaining discipline can be one of the most important factors. From time to time, investors will be overcome by fear during a large market selloff. On the other side, investors may become extremely excited during a widespread market move to the upside. When these situations occur, investors tend to make better decisions if they are able to keep emotions out of play and stick to the original plan. Buying and selling at the wrong time can lead to portfolio underperformance, and it may damage investor confidence in the future.