A.I.S. Resources Limited (TSXV:AIS) and Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) Stock Valuation in Focus

Checking in on some valuation rankings, A.I.S. Resources Limited (TSXV:AIS) has a Value Composite score of 84. 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 88. 

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, A.I.S. Resources Limited (TSXV:AIS)’s ROIC is -0.676509. The ROIC 5 year average is -1.054017 and the ROIC Quality ratio is . 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 A.I.S. Resources Limited (TSXV:AIS) is -1.241935.  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 A.I.S. Resources Limited (TSXV:AIS) has a Shareholder Yield of -0.326843 and a Shareholder Yield (Mebane Faber) of -1.12470. 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.

A.I.S. Resources Limited (TSXV:AIS) has a current MF Rank of 13934. 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. A.I.S. Resources Limited (TSXV:AIS) presently has a 10 month price index of 2.62500. 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 2.33333, the 24 month is 36.00000, and the 36 month is 5.25000. Narrowing in a bit closer, the 5 month price index is 5.47826, the 3 month is 4.20000, and the 1 month is currently 1.36957.

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 A.I.S. Resources Limited (TSXV:AIS) is 1.  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.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) is 95.  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 price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) is 93.

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, Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI)’s ROIC is -2.718736. The ROIC 5 year average is -1.470120 and the ROIC Quality ratio is -1.261285. 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 Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) is 92.00000.  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 Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) is -0.699858. 

Shareholder Yield
We also note that Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) has a Shareholder Yield of -0.022223 and a Shareholder Yield (Mebane Faber) of -0.01974. 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
Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) has a current MF Rank of 18302. 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. Infinity Pharmaceuticals, Inc. (NasdaqGS:INFI) presently has a 10 month price index of 0.68385. 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 1.38194, the 24 month is 0.31840, and the 36 month is 0.13135. Narrowing in a bit closer, the 5 month price index is 1.79279, the 3 month is 0.53351, and the 1 month is currently 1.09341.

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