ZEON Corp (4205) recently came up on the Quant Investing screener’s weekly list of companies with improving fundamentals which means it has an improving Piotroski F-Score.
Over the past week ZEON Corp (4205) F-Score increased from 5 to 7.
What is the Piotroski F-Score?
The Piotroski F-Score is a ranking system based on the following nine ratios and indicators:
Profitability
1. Return on assets (ROA)
2. Cash flow return on assets (CFROA)
3. Change in return on assets
4. Quality of earnings (accrual)
Funding
5. Change in gearing or leverage
6. Change in working capital (liquidity)
7. Change in shares in issue
Efficiency
8. Change in gross margin
9. Change in asset turnover
An F-Score of 8 or 9 is good whereas 0 or 1 is bad.
Research has shown that you should avoid companies with a bad F-Score!
More information on the Piotroski F-Score
You can read more about the Piotroski F-Score here:
This academic can help you make better investment decisions – Piotroski F-Score
Can the Piotroski F-Score also improve your investment strategy?
ZEON Corp (4205) is also undervalued
Apart from ZEON Corp having good fundamental momentum it is also undervalued in terms of the following valuation ratios:
- Qi Value ranking of: 8 (Top 8% ranked of all companies)
- Value Composite 1 ranking of: 14 (Top 14% rank of all companies)
- Earnings Yield (EBIT to EV) of: 11.2%
- EBITDA Yield (EBITDA to EV) of: 17.5%
- Dividend Yield of: 1.6%
(Click on the ratio to get more information)
ZEON Corp’s (4205) stock price momentum
ZEON Corp’s stock price momentum (Price Index) is as follows:
- Price Index 3 months (current stock price / stock price 3 months ago): 1.0
- Price Index 6 months (current stock price / stock price 6 months ago): 1.2
- Price Index 12 months (current stock price / stock price 12 months ago): 0.9
Momentum or Price Index is calculated as the current stock price minus the price in the past, for example 3 months ago. A price index value greater than one tells you by how much the price is up over either 3, 6 , or 12 months.
More information on momentum
You can read more on why momentum is a great indicator to increase your returns here:
Stock price momentum back test
10 myths about momentum investing, squashed
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