Oceania Healthcare Limited (NZSE:OCA) EBITDA Yield & Shareholder Return Update – Lenox Ledger

The EBITDA Yield is a great way to determine a companys profitability. This number is calculated by dividing a companys earnings before interest, taxes, depreciation and amortization by the companys 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 EBITDA Yield for Oceania Healthcare Limited (NZSE:OCA) is 1.78%.

Another useful indicator to assist in detmining rank is the ERP5 Rank. This is an investment tool that analysts use to discover undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Oceania Healthcare Limited (NZSE:OCA) is 12175. The lower the ERP5 rank, the more undervalued a company is thought to be.

Looking further, the MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.

The MF Rank of Oceania Healthcare Limited (NZSE:OCA) is 10148. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, The Little Book that Beats the Market.

Piotroski F-Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firms financial strength. The score helps determine if a companys stock is valuable or not. The Piotroski F-Score of Oceania Healthcare Limited (NZSE:OCA) is 5. A score of nine indicates a high value stock, while a score of one indicates a low value stock.

The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

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 Oceania Healthcare Limited (NZSE:OCA) is 25. 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.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Oceania Healthcare Limited (NZSE:OCA) for last month was 1.06329. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month.

If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for Oceania Healthcare Limited (NZSE:OCA) is 1.06329.

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Oceania Healthcare Limited (NZSE:OCA) EBITDA Yield & Shareholder Return Update - Lenox Ledger