Jardine Matheson Holdings Limited (SGX:J36)’s Magic Formula Rank stands at 8687. 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.

Stock market investing can sometimes be a wild ride. High volatility stocks may seem to constantly going haywire. Finding a comfortable balance between stomach turning stocks and low volatility stable stocks may be the way to go. Building confidence in the stock portfolio may come with some trial and error for the individual investor. Many people will rely on others to actively manage their money, but there are always those who prefer to have a hand in every aspect of their hard earned cash. Staying on top of the markets may seem impossible sometimes. There is always something happening, and keeping the pulse on market movements may be quite a struggle. Applying the proper amount of time to dedicate for stock research might just be the difference between buying that next big winner or getting stuck with a big loser.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Jardine Matheson Holdings Limited (SGX:J36) is 12. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Jardine Matheson Holdings Limited (SGX:J36) is 29.

Shifting gears, we can see that Jardine Matheson Holdings Limited (SGX:J36) has a Q.i. Value of 26.00000. 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.

Watching some historical volatility numbers on shares of Jardine Matheson Holdings Limited (SGX:J36), we can see that the 12 month volatility is presently 16.594900. The 6 month volatility is 21.724800, and the 3 month is spotted at 24.626200. 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.

Investors may be interested in viewing the Gross Margin score on shares of Jardine Matheson Holdings Limited (SGX:J36). The name currently has a score of 14.00000. 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.

At the time of writing, Jardine Matheson Holdings Limited (SGX:J36) 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.

**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 Jardine Matheson Holdings Limited (SGX:J36) is 16.594900. 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 Jardine Matheson Holdings Limited (SGX:J36) is 24.626200. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 21.724800.

**Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average**

The Return on Invested Capital (aka ROIC) for Jardine Matheson Holdings Limited (SGX:J36) is 0.051631. 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 Jardine Matheson Holdings Limited (SGX:J36) is 6.549265. 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 Jardine Matheson Holdings Limited (SGX:J36) is 0.062383.

There are many different tools to determine whether a company is profitable or not. 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 Jardine Matheson Holdings Limited (SGX:J36) is 0.033035. 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.

Investors may be trying to decide if stocks will make new highs before the year is out, and whether or not the bull market will celebrate its 9th anniversary next year. The tricky part is prognosticating the short term picture. Investors may not be comfortable enough to go all in, but they may not want to get bearish given the solid economic backdrop. Will there be a big breakout given the strength of earnings and economic growth? Will investors just become numb to the headlines and decide to focus on the positive economic picture? It is always wise to remember that the market can have a correction at any time for any reason. If the political landscape gets even more dysfunctional, then it may be enough of a driver to spur a correction.