Semtech Corporation (NasdaqGS:SMTC): How Does This Stock Score in Terms of Value?

Checking in on some valuation rankings, Semtech Corporation (NasdaqGS:SMTC) has a Value Composite score of 68. 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 69. 

At times, investors may be prone to making impulsive or irrational decisions when it comes to the stock market. Finding a way to leave emotions out of important investing decisions can greatly assist the investor in achieving their goals. Investors who stay committed to a plan may be able to fight off emotional urges when certain situations arise. Investors may find it useful to rebalance the portfolio as opposed to chasing market performance when adjustments need to be made. Making sure the stock portfolio is aligned to suit the goals of the individual investor may play an important role in being able to consistently sustain profits well into the future.

In taking a look at some other notable technicals, Semtech Corporation (NasdaqGS:SMTC)’s ROIC is 0.260129. The ROIC 5 year average is 0.205835 and the ROIC Quality ratio is 4.612550. 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.

We also note that Semtech Corporation (NasdaqGS:SMTC) has a Shareholder Yield of -0.007434 and a Shareholder Yield (Mebane Faber) of -0.00309. 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.

Semtech Corporation (NasdaqGS:SMTC) has a current MF Rank of 6459. 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.

We can now take a quick look at some historical stock price index data. Semtech Corporation (NasdaqGS:SMTC) presently has a 10 month price index of 1.13561. 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 1.14258, the 24 month is 1.33490, and the 36 month is 2.12742. Narrowing in a bit closer, the 5 month price index is 1.30203, the 3 month is 1.20406, and the 1 month is currently 1.09325.

Individual investors often have a lot to deal with when surveying the stock market landscape. Choosing stocks based on recent performance may not work out as well as planned. Stocks that were winners last year, last month, or even last week, may not be winners next week, next month, or next year. Digging into the fundamentals can help the investor see what stocks are set up for future success. Taking multiple approaches when viewing a certain security may help the investor put the puzzle together and see the bigger picture. Staying current on economic data can also help the investor obtain a broader sense of what is driving present market conditions.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements.  The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth.  The C-Score of Semtech Corporation (NasdaqGS:SMTC) is 3.00000.  The score ranges on a scale of -1 to 6.  If the score is -1, then there is not enough information to determine the C-Score.  If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.

Volatility

Watching some historical volatility numbers on shares of Semtech Corporation (NasdaqGS:SMTC), we can see that the 12 month volatility is presently 44.593500. The 6 month volatility is 41.054300, and the 3 month is spotted at 38.709400. 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. 

Piotroski F-Score

At the time of writing, Semtech Corporation (NasdaqGS:SMTC) has a Piotroski F-Score of 5. 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.

When it comes to setting up a winning stock portfolio, many investors will select a wide variety of securities in order to minimize risk. This may include choosing a mix of small cap, large cap, value, and growth stocks. Many investors will also include foreign stocks in the portfolio as well. Once the portfolio is set up, investors may realize that they need to rebalance from time to time. Investors may find it extremely helpful to stay up to date and know exactly what holdings they have. When hard earned investing dollars are at stake, individuals may be best served to monitor the portfolio closely at all times. Putting in the extra time and effort to acquire stock market knowledge may help the investor become better prepared for the long haul. 

P/B

Semtech Corporation (NasdaqGS:SMTC) has a Price to Book ratio of 5.203449. 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 25.759294, and a current Price to Earnings ratio of 81.240492. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

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