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How to understand Enzo Biochem Inc. (NYSE: ENZ)?

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We are going to take a deep look at Enzo Biochem Inc. (NYSE: ENZ) to get a better view of the company and its prevailing status, as well as the prospect it may offer for investors. Today’s prime focus will be a fundamental assessment of the equity from top to bottom.

As such, let’s begin with the top line, i.e. revenue trends. Last quarter, the firm saw its overall revenue come at $27.09M. That represents a change in revenues, on a quarterly/yearly basis, of 0.02%. If it is translated into sequential terms, the firm witnessed sales grow by 0.03% from quarter to quarter.

It’s important to track the top line data. There’s no better way to compute the end market’s reception of a firms products. But no one wins without bottom line performance, which is what is required to look at next. Enzo Biochem Inc. (NYSE: ENZ) is intriguing when segregated to its core data. The cost of selling goods in preceding quarter was $14.92M, resulting in a gross basic income of $12.17M. For shareholders, provided the total diluted due shares of 46.37M, this means earnings per share of $(). Note, this assesses with a consensus analyst projection of $-0.01 in EPS for its next quarterly report.

Given that data, now is the time to turn to a thorough glance across analyst projections for the firm going forward. At present, analysts have a consensus average recommendation of Buy. This is grounded on a total of 1 analyst. While we don’t recommend taking analyst calls as face value strategies for action in a portfolio, we do consider it is vital to note where consensus is on an equity to understand what basic assumptions are possibly already discounted into the pricing of shares. As far as price targets, market analysts have an average target of $12.00. In addition, for next year, estimates of a fiscal year forecast is 0.04 in total EPS. On a median price to earnings ratio, that outlook results in a valuation of $286.00 times earnings.

For Enzo Biochem Inc. (NYSE: ENZ), the firm presently holds around $62.63M in cash. That cash is balanced against around $390,000 in total current liabilities. The firm’s debt is $falling, while total assets are $106.58M balanced by total liablities of $18.02M. The free cash flow last quarter was $203,000, representing a net change in cash of $200,000. On a net operating level, the cash flow was about $938,000.

Let’s take a look at the technical analysis. The Barchart Technical Opinion rating is a 64% Sell with a Strengthening short term outlook on maintaining the current direction. Longer term, the trend strength is Average. Long term indicators mostly agree with the trend. The market is approaching oversold territory. Be watchful of a trend reversal.

We will apprise the interesting story of Enzo Biochem Inc. (NYSE: ENZ) as new events transpire.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

I graduated from UCSD with a degree in Journalism. With more than 5 years of experience in freelance journalism, my forte is covering stock fundamentals.

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Ford Motor Company (F) finding value is an unloved sector

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Our task today will be to comprehensively evaluate recent data for Ford Motor Company (F) to determine whether or not we have something approaching a “value” in the market.

In the most basic sense, the “value investing” methodology really has its roots in the college textbook “Security Analysis”, which was published six decades ago by Graham and Dodd. But today, the term “value investing” is generally applied to any approach that focuses first and foremost on the concept of valuation, seeking out viable companies that are “cheap” based on various measures.

In this case, the company’s forward price-to-earnings ratio — perhaps the most common default measure of valuation — is currently at 7.92. That’s based on estimates looking for earnings of 0.48 coming up the pike in the company’s next financial report card.

That said, we all know that the forward data on a stock like this requires faith in those making projections: the analysts. Currently, the forward projections are driven by a group of 20 analysts. And, naturally, no one knows if those 20 folks are way off base for some reason. It’s happened before. That’s why some investing legends only trust the trailing earnings data.

In this case, that valuation ration is sitting right at 12.67.

However, to get a real sense of how this measures up, we will need to dig deeper. Benjamin Graham, the legendary value investor and one of the authors of the seminal text mentioned above, commonly relied on a simple formula for more aggressive investments: Current assets should be at least 1½ times current liabilities, debt should not be more than 110% of net current assets, there should be some level of dividend payments, and the Price-to-book-value ratio should be less than 120% of net tangible assets.

With that in mind, let’s see how Ford Motor Company (F) stacks up to this challenge.

First off, the company’s current ratio (the ration of current assets to current liabilities) is sitting at 1.20. Remember, according to Graham, that should be at least 1.5. Next, we can see debt-to-equity at 451.22. In addition, if you search the company’s recent dividend rate, you will get 0.60. How about price-to-book ratio? Right now, it clocks in at 1.48.

That should speak to what Graham might say if he came across this stock at its current price. But there are certainly other factors involved in the concept of value in today’s market that should be appreciated.

For example, Ford Motor Company (F) has managed to generate a return on its assets of 0.80%. That has been achieved through operating margins of 2.03%. Naturally, in the most basic sense, the concept of value is rooted in an ability to generate returns on invested capital. It is fundamentally about gaining access to the machine that has demonstrated its capability to generate those returns, and to do so for a price that is beneath what it is truly worth.

Perhaps the final measure that speaks to this idea is what investors currently have to pay for the company’s sales. In this case, the company’s price-to-sales ratio currently clocks in at 0.31.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Castle Brands Inc. (ROX) beta you simply cannot ignore

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Our task today will be to comprehensively evaluate recent data for Castle Brands Inc. (ROX) to determine whether or not we have something approaching a “value” in the market.

In the most basic sense, the “value investing” methodology really has its roots in the college textbook “Security Analysis”, which was published six decades ago by Graham and Dodd. But today, the term “value investing” is generally applied to any approach that focuses first and foremost on the concept of valuation, seeking out viable companies that are “cheap” based on various measures.

In this case, the company’s forward price-to-earnings ratio — perhaps the most common default measure of valuation — is currently at 61.00. That’s based on estimates looking for earnings of 0 coming up the pike in the company’s next financial report card.

That said, we all know that the forward data on a stock like this requires faith in those making projections: the analysts. Currently, the forward projections are driven by a group of 1 analysts. And, naturally, no one knows if those 1 folks are way off base for some reason. It’s happened before. That’s why some investing legends only trust the trailing earnings data.

In this case, that valuation ration is sitting right at -203.33.

However, to get a real sense of how this measures up, we will need to dig deeper. Benjamin Graham, the legendary value investor and one of the authors of the seminal text mentioned above, commonly relied on a simple formula for more aggressive investments: Current assets should be at least 1½ times current liabilities, debt should not be more than 110% of net current assets, there should be some level of dividend payments, and the Price-to-book-value ratio should be less than 120% of net tangible assets.

With that in mind, let’s see how Castle Brands Inc stacks up to this challenge.

First off, the company’s current ratio (the ration of current assets to current liabilities) is sitting at 3.06. Remember, according to Graham, that should be at least 1.5. Next, we can see debt-to-equity at 822.46. In addition, if you search the company’s recent dividend rate, you will get N/A. How about price-to-book ratio? Right now, it clocks in at 110.91.

That should speak to what Graham might say if he came across this stock at its current price. But there are certainly other factors involved in the concept of value in today’s market that should be appreciated.

For example, Castle Brands Inc. (ROX) has managed to generate a return on its assets of 2.48%. That has been achieved through operating margins of 2.87%. Naturally, in the most basic sense, the concept of value is rooted in an ability to generate returns on invested capital. It is fundamentally about gaining access to the machine that has demonstrated its capability to generate those returns, and to do so for a price that is beneath what it is truly worth.

Perhaps the final measure that speaks to this idea is what investors currently have to pay for the company’s sales. In this case, the company’s price-to-sales ratio currently clocks in at 2.72.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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Tesla, Inc. (TSLA) beta you simply cannot ignore

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Our task today will be to comprehensively evaluate recent data for Tesla, Inc. (TSLA) to determine whether or not we have something approaching a “value” in the market.

In the most basic sense, the “value investing” methodology really has its roots in the college textbook “Security Analysis”, which was published six decades ago by Graham and Dodd. But today, the term “value investing” is generally applied to any approach that focuses first and foremost on the concept of valuation, seeking out viable companies that are “cheap” based on various measures.

In this case, the company’s forward price-to-earnings ratio — perhaps the most common default measure of valuation — is currently at -171.95. That’s based on estimates looking for earnings of -1.7 coming up the pike in the company’s next financial report card.

That said, we all know that the forward data on a stock like this requires faith in those making projections: the analysts. Currently, the forward projections are driven by a group of 19 analysts. And, naturally, no one knows if those 19 folks are way off base for some reason. It’s happened before. That’s why some investing legends only trust the trailing earnings data.

In this case, that valuation ration is sitting right at -69.46.

However, to get a real sense of how this measures up, we will need to dig deeper. Benjamin Graham, the legendary value investor and one of the authors of the seminal text mentioned above, commonly relied on a simple formula for more aggressive investments: Current assets should be at least 1½ times current liabilities, debt should not be more than 110% of net current assets, there should be some level of dividend payments, and the Price-to-book-value ratio should be less than 120% of net tangible assets.

With that in mind, let’s see how Tesla, Inc stacks up to this challenge.

First off, the company’s current ratio (the ration of current assets to current liabilities) is sitting at 0.97. Remember, according to Graham, that should be at least 1.5. Next, we can see debt-to-equity at 145.20. In addition, if you search the company’s recent dividend rate, you will get N/A. How about price-to-book ratio? Right now, it clocks in at 11.01.

That should speak to what Graham might say if he came across this stock at its current price. But there are certainly other factors involved in the concept of value in today’s market that should be appreciated.

For example, Tesla, Inc. (TSLA) has managed to generate a return on its assets of -2.10%. That has been achieved through operating margins of -6.33%. Naturally, in the most basic sense, the concept of value is rooted in an ability to generate returns on invested capital. It is fundamentally about gaining access to the machine that has demonstrated its capability to generate those returns, and to do so for a price that is beneath what it is truly worth.

Perhaps the final measure that speaks to this idea is what investors currently have to pay for the company’s sales. In this case, the company’s price-to-sales ratio currently clocks in at 5.59.

 

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of argusjournal.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please click HERE

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