July 8, 2019 at 1:50 pm

Courting the Quant Signals For Nucleus Financial Group Plc (AIM:NUC)


Checking in on some valuation rankings, Nucleus Financial Group Plc (AIM:NUC) has a Value Composite score of 62. 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 53.

Nucleus Financial Group Plc (AIM:NUC) has an ERP5 rank of 6696. 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 lower the ERP5 rank, the more undervalued a company is thought to be.


Watching some historical volatility numbers on shares of Nucleus Financial Group Plc (AIM:NUC), we can see that the 12 month volatility is presently 0.000000. The 6 month volatility is 24.940900, and the 3 month is spotted at 24.686300. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

We can now take a quick look at some historical stock price index data. Nucleus Financial Group Plc (AIM:NUC) presently has a 10 month price index of 0.89810. 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 0.79123, the 24 month is 0.79123, and the 36 month is 0.79123. Narrowing in a bit closer, the 5 month price index is 1.12973, the 3 month is 1.00320, and the 1 month is currently 0.90887.

Valuation Ratios

Looking at some ROIC (Return on Invested Capital) numbers, Nucleus Financial Group Plc (AIM:NUC)’s ROIC is 0.358895. The ROIC 5 year average is 0.272628 and the ROIC Quality ratio is 0.562895. 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. In terms of EBITDA Yield, Nucleus Financial Group Plc (AIM:NUC) currently has a value of 0.045063. This value is derived by dividing EBITDA by Enterprise Value.

The Price to Book ratio (Current share price / Book value per share) is a good valuation measure you can use to find undervalued investment ideas. A low Price to Book could indicate that the shares are undervalued in their industry. Generally speaking a P/B ratio under 1 is considered low and is best used in relation to asset-heavy firms. At the time of writing Nucleus Financial Group Plc (AIM:NUC) has a price to book ratio of 8.015652.

The Leverage Ratio of Nucleus Financial Group Plc (AIM:NUC) is 0.003106. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

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 Nucleus Financial Group Plc (AIM:NUC) is 0.165225. 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.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Nucleus Financial Group Plc (AIM:NUC) 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 Nucleus Financial Group Plc (AIM:NUC) is 53.

At the time of writing, Nucleus Financial Group Plc (AIM:NUC) has a Piotroski F-Score of 3. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Nucleus Financial Group Plc AIM:NUC is 8.015652. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Nucleus Financial Group Plc (AIM:NUC) is 25.539294. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Nucleus Financial Group Plc (AIM:NUC) is 29.448589. This ratio is found by taking the current share price and dividing by earnings per share.