Regal Hotels International Holdings Limited (SEHK:78): How Does This Stock Rank Value-Wise?

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The Value Composite score of Regal Hotels International Holdings Limited (SEHK:78) is 22.  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 Regal Hotels International Holdings Limited (SEHK:78) is 18.

Trying to project the day to day short-term movements of the stock market may be all but impossible. Stocks have the tendency to make sudden moves on even the slightest bit of news or for apparently no reason at all. The daily trader may be looking to capitalize on swings or momentum, but the long-term investor may be searching for stability and consistency over a sustained period of time. During trading sessions, stock movements can seem like a popularity contest from time to time. Even after careful study, there may be no logical reason for a particular stock move. Riding out the waves of uncertainty may not be easy, but having a full-proof plan for when markets erode may just be the savior. Having the patience to wait out abnormal moves may help evade the mistake of letting go too soon out of panic. 

Technicals at a Glance
In taking a look at some other notable technicals, Regal Hotels International Holdings Limited (SEHK:78)’s ROIC is 0.024545. The ROIC 5 year average is 0.029964 and the ROIC Quality ratio is 1.961821. 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 Regal Hotels International Holdings Limited (SEHK:78) is 0.008432.  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 Regal Hotels International Holdings Limited (SEHK:78) has a Shareholder Yield of 0.028653 and a Shareholder Yield (Mebane Faber) of -0.39006. 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.

Regal Hotels International Holdings Limited (SEHK:78) has a current MF Rank of 9205. 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. Regal Hotels International Holdings Limited (SEHK:78) presently has a 10 month price index of 1.55140. 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 1.72917, the 24 month is 1.47495, and the 36 month is 1.42887. Narrowing in a bit closer, the 5 month price index is 1.53488, the 3 month is 1.29666, and the 1 month is currently 0.93400.

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 Regal Hotels International Holdings Limited (SEHK:78) 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.

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