Checking in on some valuation rankings, ADMA Biologics, Inc. (NasdaqCM:ADMA) has a Value Composite score of 98. 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 96. 

Technicals

Investors may be searching for various types of stocks to help diversify the portfolio. Growth stocks include shares of companies that may have the possibility of generating higher than average profit growth and revenues. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Cyclical stocks consist of companies that typically will ride the wave of the overall economy. These shares tend to perform well when the economy is doing well and perform poorer when the economy is faltering.

In taking a look at some other notable technicals, ADMA Biologics, Inc. (NasdaqCM:ADMA)’s ROIC is -1.231318. The ROIC 5 year average is -1.258545 and the ROIC Quality ratio is -1.326663. 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.

We also note that ADMA Biologics, Inc. (NasdaqCM:ADMA) has a Shareholder Yield of -0.022817 and a Shareholder Yield (Mebane Faber) of -0.02834. 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.

ADMA Biologics, Inc. (NasdaqCM:ADMA) has a current MF Rank of 17102. 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.

We can now take a quick look at some historical stock price index data. ADMA Biologics, Inc. (NasdaqCM:ADMA) presently has a 10 month price index of 1.02923. 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 0.94808, the 24 month is 1.07174, and the 36 month is 0.67442. Narrowing in a bit closer, the 5 month price index is 0.96477, the 3 month is 1.48943, and the 1 month is currently 1.26735.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.  The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth.  The C-Score of ADMA Biologics, Inc. (NasdaqCM:ADMA) is 2.00000.  The score ranges on a scale of -1 to 6.  If the score is -1, then there is not enough information to determine the C-Score.  If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Many investors are concerned with the proper portfolio diversification. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks. They may also be spreading out stock picks among various industries. Keeping a mix of stocks that perform differently under certain market conditions can help keep the portfolio afloat when the environment shifts. Holding a few large positions in a small number stocks may lead to trouble if the market turns sour and stock prices decline drastically.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Connecticut Water Service, Inc. (NasdaqGS:CTWS) is 62.  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 Connecticut Water Service, Inc. (NasdaqGS:CTWS) is 54.

When conducting stock research, some investors will choose to start from the top-down while others may choose to begin from the bottom-up. Starting from the top-down typically includes studying the overall economy, industries, and multiple markets. Stocks tend to perform differently at certain points in economic cycles. Figuring out where the economy is can help find the sectors that will outperform. Once specific sectors are identified, investors might be able to then select certain stocks within those sectors. Investors who start with from the bottom-up may start by analyzing individual stocks first. This may include looking for stocks that are undervalued in relation to the perceived value of the company. Many investors will use a combination of both styles when undertaking detailed stock research.

Technicals at a Glance

In taking a look at some other notable technicals, Connecticut Water Service, Inc. (NasdaqGS:CTWS)’s ROIC is 0.040254. The ROIC 5 year average is 0.042979 and the ROIC Quality ratio is 8.244599. 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 Connecticut Water Service, Inc. (NasdaqGS:CTWS) is 0.018564.  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 Connecticut Water Service, Inc. (NasdaqGS:CTWS) has a Shareholder Yield of 0.019456 and a Shareholder Yield (Mebane Faber) of -0.02429. 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.

Connecticut Water Service, Inc. (NasdaqGS:CTWS) has a current MF Rank of 9851. 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. Connecticut Water Service, Inc. (NasdaqGS:CTWS) presently has a 10 month price index of 1.09177. 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 1.11790, the 24 month is 1.35046, and the 36 month is 1.62051. Narrowing in a bit closer, the 5 month price index is 1.00768, the 3 month is 1.09190, and the 1 month is currently 1.03572.

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 Connecticut Water Service, Inc. (NasdaqGS:CTWS) is 6.  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.

Investors are often faced with difficult decisions when trading the equity market. Sometimes, the decision to sell a certain stock may be just as important as the decision to buy the stock in the first place. Individual investors may have done the research, had some good fortune, and are now dealing with a big winner in the portfolio. Even though a stock has had a big run, it may be time to unload and take some profits. Holding on to a winner too long can eat into profits that may have been better spent getting into another promising name. On the flip side, investors may have trouble letting go of an underperforming portfolio loser. The emotional attachment to a stock can cause the investor to hold onto a stock for way too long. Maybe the stock was thoroughly researched, but it just keeps going lower. Being able to cut the ties instead of waiting for a bounce back may be beneficial for portfolio health in the long run.