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Today we are spotlighting shares of SunPower Corporation (NasdaqGS:SPWR) and looking at how the firm stacks up in terms of valuation by the numbers. One of the most important ratios to look at when weighing an investment decision is the Return on Equity of the company. At the time of writing SunPower Corporation has an ROE of 3.886471. With ROE, Investors can see if they’re getting a good return on their money, while a company can evaluate how efficiently they’re utilizing shareholder’s equity.

The stock market can be an exciting yet scary place for investors who are just starting out. Individual investors who decide to manage their own portfolios may need to hit the books and be ready to take a comprehensive approach. There is no lack of information about investing in the stock market, but figuring out where to start can be difficult. Setting up goals and defining the investment plan can help start the investor down the right path. As many seasoned investors know, there can be times when nothing seems to be going right. Keeping a clear head and focusing on the relevant information can help the investor stay steady when the going gets tough.

Drilling down into some additional metrics, we note that SunPower Corporation (NasdaqGS:SPWR) has a Price to Book ratio of -5.321171. 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 -2.043668, and a current Price to Earnings ratio of -1.369152. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

After a recent scan, we can see that SunPower Corporation (NasdaqGS:SPWR) has a Shareholder Yield of -0.010848 and a Shareholder Yield (Mebane Faber) of 1.08413. 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.

The Return on Invested Capital (aka ROIC) for SunPower Corporation (NasdaqGS:SPWR) is -0.390748. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of SunPower Corporation (NasdaqGS:SPWR) is 1.883752. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of SunPower Corporation (NasdaqGS:SPWR) is -0.023639.

The Earnings to Price yield of SunPower Corporation NasdaqGS:SPWR is -0.730379. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for SunPower Corporation NasdaqGS:SPWR is -0.308903. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for SunPower Corporation (NasdaqGS:SPWR) is -0.034506.

SunPower Corporation (NasdaqGS:SPWR) currently has a Montier C-score of 1.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

At the time of writing, SunPower Corporation (NasdaqGS:SPWR) has a Piotroski F-Score of 4. 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.

Shifting gears, we can see that SunPower Corporation (NasdaqGS:SPWR) has a Q.i. Value of 89.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

**Volatility**

Watching some historical volatility numbers on shares of SunPower Corporation (NasdaqGS:SPWR), we can see that the 12 month volatility is presently 54.427200. The 6 month volatility is 55.453700, and the 3 month is spotted at 43.078100. 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.

One of the most important factors that investors look at when examining stocks is the consistency of earnings results. When the quarterly earnings report is released, investors watch closely to see if the company is performing up to expectations. A company that fails to meet projections may see large price swings following the report. Of course one bad quarter may not signal trouble, but a company that continually disappoints during earnings season may need to be further examined to help figure out what is going on. Experienced investors will closely watch stock price movements before and after earnings events in order to gain a truer understanding of how the market is reacting to the reports.

Placing Century Aluminum Company (NasdaqGS:CENX) shares under the microscope we note that the firm has a current Return on Equity of -0.086854. Simply put, this ratio determines how well the firm uses investment funds to generate profit. This ratio is often considered “the mother of all ratios” as it often reveals how well a company is operating.

Investors will be trying to gauge which way stock market momentum will shift as we head into the close of the calendar year. Some may be of the mindset that the bears will be taking over shortly. Others may be super bullish and ready for the market to make a further run higher. Trying to predict which way the tide will shift is no easy task. Being prepared for any situation that arises is a god way to combat the uncertainty that always follows the market. Being prepared can help the investor make quick, tough decisions when the time comes. Many investors may have already figured out that holding onto losers for too long can be damaging for the portfolio. They may have also realized that holding onto winners too long can also have negative effects. Finding that perfect buy/sell balance can end up being the difference between a good portfolio and a great one.

In additiona to ROE, investors might also take into consideration some other ratios. 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 Century Aluminum Company (NasdaqGS:CENX) is -0.041856. 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 Return on Invested Capital (aka ROIC) for Century Aluminum Company (NasdaqGS:CENX) is -0.047869. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Century Aluminum Company (NasdaqGS:CENX) is 1.775230. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Century Aluminum Company (NasdaqGS:CENX) is 0.014585.

After a recent scan, we can see that Century Aluminum Company (NasdaqGS:CENX) has a Shareholder Yield of -0.003493 and a Shareholder Yield (Mebane Faber) of -0.03561. 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.

**Quant Scores**

Checking in on some valuation rankings, Century Aluminum Company (NasdaqGS:CENX) has a Value Composite score of 51. 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 57.

Investors may be interested in viewing the Gross Margin score on shares of Century Aluminum Company (NasdaqGS:CENX). The name currently has a score of 59.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

Century Aluminum Company (NasdaqGS:CENX) has a current MF Rank of 13166. 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.

Century Aluminum Company (NasdaqGS:CENX) has a current ERP5 Rank of 12357. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

**Price Index & Volatility**

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Century Aluminum Company (NasdaqGS:CENX) is 62.855600. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Century Aluminum Company (NasdaqGS:CENX) is 49.287300. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 65.492400.

As soon as an individual decides what they want out of their investments, they can start formulating the best way to accomplish those goals. The time horizon for each investor may be different. Fluctuations in the financial markets can have a big effect on shorter-term investments. Investors that need a certain amount of money in a shorter amount of time may be looking to develop a stock market strategy with a bit less risk involved. On the other end of the spectrum, a younger investor with a longer time horizon might be able to search for stocks with a higher potential for growth that may involve much more risk. The volatility of today’s markets can test the nerves of any investor. Understanding volatility and market fluctuations can help the investor gauge their risk tolerance in the markets.

We can now take a quick look at some historical stock price index data. Century Aluminum Company (NasdaqGS:CENX) presently has a 10 month price index of 0.53232. 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 0.47803, the 24 month is 0.68311, and the 36 month is 1.30758. Narrowing in a bit closer, the 5 month price index is 1.05300, the 3 month is 1.06651, and the 1 month is currently 1.15404.

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