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- Startups - Rob Hayes of First Round Capital - TWiST #249

1:00-2:15 Welcome everyone, with me today is Rob Hayes of First Round Capital. 2:15-4:00 Thank you to eMinutes for sponsoring the show. If you&#39 ...

What's Unfolding For Shares of First Capital Realty Inc. (TSX:FCR)

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 First Capital Realty Inc. (TSX:FCR) 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.

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of First Capital Realty Inc. (TSX:FCR) is 7507.  The lower the ERP5 rank, the more undervalued a company is thought to be. The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of First Capital Realty Inc. (TSX:FCR) is 8055.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

A Deep Dive into The Numbers For First Capital Realty Inc. (TSX:FCR)

. 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.  This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC.  The higher the ratio, the better as a higher score indicates a more stable return on invested capital.

We can now take a quick look at some historical stock price index data. First Capital Realty Inc. (TSX:FCR) presently has a 10 month price index of 0.96250. 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 0.95822, the 24 month is 1.22581, and the 36 month is 1.23764. Narrowing in a bit closer, the 5 month price index is 1.02923, the 3 month is 1.03848, and the 1 month is currently 1.01628.