IDEC Corporation (TSE:6652): Drilling into the Technicals

Looking at some ROIC (Return on Invested Capital) numbers, IDEC Corporation (TSE:6652)’s ROIC Quality Score is 2.930939. 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.

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

We can now take a quick look at some historical stock price index data. IDEC Corporation (TSE:6652) presently has a 10 month price index of 1.99073. 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 2.13691, the 24 month is 2.18352, and the 36 month is 2.18123. Narrowing in a bit closer, the 5 month price index is 1.58003, the 3 month is 1.22521, and the 1 month is currently 1.02297.

Ratios
IDEC Corporation (TSE:6652) has a Price to Book ratio of 1.729986. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of , and a current Price to Earnings ratio of 14.238104. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Checking in on some valuation rankings, IDEC Corporation (TSE:6652) has a Value Composite score of 40. 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 34.

Watching some historical volatility numbers on shares of IDEC Corporation (TSE:6652), we can see that the 12 month volatility is presently 37.119900. The 6 month volatility is 41.055900, and the 3 month is spotted at 36.937000. 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. 

Score
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of IDEC Corporation (TSE:6652) is 20.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

By Journal Contributor