SFK Construction Holdings Limited (SEHK:1447): A Look at the Company’s Profitability

Looking at some ROIC (Return on Invested Capital) numbers, SFK Construction Holdings Limited (SEHK:1447)’s ROIC Quality Score is 2.843814. 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.

Investors might be trying to figure out how to play the stock market at current levels. The optimist may see much more upward action in the future while the pessimist may be waiting for the impending disaster. Buying into the market at these levels will no doubt come with a bit of caution. Even at these levels, there may still be some good buys. The average individual investor may need to spend a little more time doing the homework, but it may pay off handsomely if the stock market decides to break out higher. As companies start to report quarterly earnings, investors will be watching to see what types of trends emerge. A generally upbeat earnings season may give the bulls more strength to breakout and continue the charge higher into the later stages of the year.

We can now take a quick look at some historical stock price index data. SFK Construction Holdings Limited (SEHK:1447) presently has a 10 month price index of 1.78856. 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 1.64509, the 24 month is 3.33475, and the 36 month is 3.33475. Narrowing in a bit closer, the 5 month price index is 1.29783, the 3 month is 1.16721, and the 1 month is currently 1.17123.

SFK Construction Holdings Limited (SEHK:1447) has a Price to Book ratio of 3.028230. 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 11.052848, and a current Price to Earnings ratio of 12.909679. 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, SFK Construction Holdings Limited (SEHK:1447) has a Value Composite score of 24. 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 15.

Watching some historical volatility numbers on shares of SFK Construction Holdings Limited (SEHK:1447), we can see that the 12 month volatility is presently 43.985600. The 6 month volatility is 42.466200, and the 3 month is spotted at 37.480900. 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. 

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 SFK Construction Holdings Limited (SEHK:1447) is 14.00000. 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.

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