Kirkland’s, Inc. (NasdaqGS:KIRK) Value Score in Focus

Taking a look at valuation rankings for Kirkland’s, Inc. (NasdaqGS:KIRK), we see that the stock has a Value Composite score of 6. 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 14.

The amount of financial information available to individual investors these days is staggering. Accumulating intelligence in the stock market is much easier to do than ever before. All the advances in technology have allowed regular investors to access information with relative ease. Making sense of all the various data can be overwhelming, but plowing through the data may create a solid foundation to start enhancing profits in the market. With so many investing options, traders and investors need to construct a plan that works specifically for them. Becoming educated about the stock market before tackling the beast might assist the individual investor in many ways. Studying how markets and prices move may help the investor decide which way is the best way to go. Understanding the difficulties and possible pitfalls that investors generally fall prey to, can go a long way in helping even before the first trade is ever made. As most investors know, the markets and economic landscapes are constantly changing. This requires the investor to be in tip top mental shape in order to confront tough buy or sell decisions when the time comes.

In taking a look at some other notable technicals, Kirkland’s, Inc. (NasdaqGS:KIRK)’s ROIC is 0.081432. The ROIC 5 year average is 0.241017 and the ROIC Quality ratio is 6.398488. 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.

The Q.i. Value of Kirkland’s, Inc. (NasdaqGS:KIRK) is 9.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value.  Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents.  The average FCF of a company is determined by looking at the cash generated by operations of the company.  The Free Cash Flow Yield 5 Year Average of Kirkland’s, Inc. (NasdaqGS:KIRK) is 0.080070. 

Shareholder Yield
We also note that Kirkland’s, Inc. (NasdaqGS:KIRK) has a Shareholder Yield of -0.008235 and a Shareholder Yield (Mebane Faber) of -0.00757. 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.

MF Rank
Kirkland’s, Inc. (NasdaqGS:KIRK) has a current MF Rank of 4717. 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 aquick look at some historical stock price index data. Kirkland’s, Inc. (NasdaqGS:KIRK) presently has a 10 month price index of 0.81832. 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 0.90008, the 24 month is 0.49955, and the 36 month is 0.73913. Narrowing in a bit closer, the 5 month price index is 0.91118, the 3 month is 1.17249, and the 1 month is currently 1.27356.

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