Company Background Information
Stock Rating
Outperform : Expect to do better than market return; has upside/cheap vs target price. Usually a buy call.
Market perform : Expect to be on neutral, can be +- 3% to 5% either way. Usually a hold call.
Underperform : Expect to do worse than market return; has downside/expensive vs target price. If fundamentals change a sell call.
Screenshot of BursaMarketPlace
Price Momentum : Herding behaviour in the market often results in the buying of stocks with strong mid- and long-term momentum. By leveraging this phenomenon, while at the same time exploiting the rebound of depressed stocks in the short term, investors can profit from price momentum in both ways.
Valuation : This Alpha Factor will be particularly useful to investors who believe in a “value investing” strategy. Value investing fundamentally involves buying undervalued stocks and selling overvalued stocks. Value investors look for opportunities in undervalued stocks which may not have recently been favoured by the market despite strong profitability or cash flows. Value investors believe that the market should eventually realise the real value of these companies. This Factor measures a combination of cash flows and the earnings, sales and book values of a share to identify undervalued shares.
Historical Growth : This Alpha Factor Companies with higher expected growth potential than their industry peers are given a higher premium by the market. Growth strategies look for companies with high future growth by studying historical growth. This factor measures earnings growth, sales growth and cash flow growth.
Capital Efficiency : Companies that focus on maximising shareholders’ value and reducing their cost of capital can benefit shareholders. These companies tend to enjoy higher returns.
Earnings Quality : Companies with stable earnings and strong management competency are often rewarded with a higher share price for their ability to bring shareholders stable cash flows. The competitiveness of a company and the operation capability of its management are reflected in profitability, operational efficiency and earnings quality. An additional tab at the top of the page allows you to display results for companies alphabetically, rather than by AlphaFactor rank.
Profitability
Earnings Per Share (EPS) : The portion of a company's profit allocated to each outstanding share of common stock. The higher it is the more profitable.
Dividends Per Share (DPS) : The the sum of declared dividends for every ordinary share issued. Dividends are a form of profit distribution to the shareholder. Having a growing dividend per share can be a sign that the company's management believes that the growth can be sustained. The higher it is the more profitable.
Dividend Yield (DY) : A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
Leverage
Debt/Equity Ratio (DE) : Measures the ratio between amount of interest bearing debt and the amount of shareholders equity. Defined as the ratio of total – long-term and short-term – debt to total assets and can be interpreted as the proportion of a company’s assets that are financed by debt.
Management Efficiency
Return On Capital Employed (ROCE) : A financial ratio that measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates more efficient use of capital. ROCE should be higher than the company’s capital cost; otherwise it indicates that the company is not employing its capital effectively and is not generating shareholder value.
Return on Equity (ROE) : The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
Valuation
Price Earnings Ratio (PER) : Computed by dividing the market price by its earnings per share (EPS). It gives a quick idea how quickly an investor can get back his money in the form of earnings after buying the shares. This ratio is tricky to understand but as a general rule PER is only applicable if the share has very stable EPS. Also the low and high range is provided as a guide of buying a particular share (worst in the high end of the past ranges).
Stock Rating
Outperform : Expect to do better than market return; has upside/cheap vs target price. Usually a buy call.
Market perform : Expect to be on neutral, can be +- 3% to 5% either way. Usually a hold call.
Underperform : Expect to do worse than market return; has downside/expensive vs target price. If fundamentals change a sell call.
Screenshot of BursaMarketPlace
Price Momentum : Herding behaviour in the market often results in the buying of stocks with strong mid- and long-term momentum. By leveraging this phenomenon, while at the same time exploiting the rebound of depressed stocks in the short term, investors can profit from price momentum in both ways.
Valuation : This Alpha Factor will be particularly useful to investors who believe in a “value investing” strategy. Value investing fundamentally involves buying undervalued stocks and selling overvalued stocks. Value investors look for opportunities in undervalued stocks which may not have recently been favoured by the market despite strong profitability or cash flows. Value investors believe that the market should eventually realise the real value of these companies. This Factor measures a combination of cash flows and the earnings, sales and book values of a share to identify undervalued shares.
Historical Growth : This Alpha Factor Companies with higher expected growth potential than their industry peers are given a higher premium by the market. Growth strategies look for companies with high future growth by studying historical growth. This factor measures earnings growth, sales growth and cash flow growth.
Capital Efficiency : Companies that focus on maximising shareholders’ value and reducing their cost of capital can benefit shareholders. These companies tend to enjoy higher returns.
Earnings Quality : Companies with stable earnings and strong management competency are often rewarded with a higher share price for their ability to bring shareholders stable cash flows. The competitiveness of a company and the operation capability of its management are reflected in profitability, operational efficiency and earnings quality. An additional tab at the top of the page allows you to display results for companies alphabetically, rather than by AlphaFactor rank.
Profitability
Earnings Per Share (EPS) : The portion of a company's profit allocated to each outstanding share of common stock. The higher it is the more profitable.
Dividends Per Share (DPS) : The the sum of declared dividends for every ordinary share issued. Dividends are a form of profit distribution to the shareholder. Having a growing dividend per share can be a sign that the company's management believes that the growth can be sustained. The higher it is the more profitable.
Dividend Yield (DY) : A financial ratio that indicates how much a company pays out in dividends each year relative to its share price.
Leverage
Debt/Equity Ratio (DE) : Measures the ratio between amount of interest bearing debt and the amount of shareholders equity. Defined as the ratio of total – long-term and short-term – debt to total assets and can be interpreted as the proportion of a company’s assets that are financed by debt.
Management Efficiency
Return On Capital Employed (ROCE) : A financial ratio that measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates more efficient use of capital. ROCE should be higher than the company’s capital cost; otherwise it indicates that the company is not employing its capital effectively and is not generating shareholder value.
Return on Equity (ROE) : The amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
Valuation
Price Earnings Ratio (PER) : Computed by dividing the market price by its earnings per share (EPS). It gives a quick idea how quickly an investor can get back his money in the form of earnings after buying the shares. This ratio is tricky to understand but as a general rule PER is only applicable if the share has very stable EPS. Also the low and high range is provided as a guide of buying a particular share (worst in the high end of the past ranges).
