GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK
Goal Acquisitions Corp (NAS:PUCK)
Not Rated
[5]$ 9.75
GF Score: 24/100Market Cap: $ 323 Mil
Industry: Financial Services - Diversified Financial Services
GF Value Rank
Rank: 0 /10CurrentIndustry MedianHistorical Median
PE RatioLoss40.83Loss
Forward P/EN/A11.38N/A
PB Ratio1.251.33N/A
PS RatioN/A3.57N/A
P/FCFN/A9.33N/A
Shiller P/EN/A15.37N/A
PEG RatioN/A1.34N/A
Valuation Analysis
Current% of Price
NCAV-0.03-0
Tangible Book7.7780
Price9.75
Dividend & Ownership
Dividend Yield (TTM) %N/A
Dividend Yield (Forward) %N/A
Dividend Payout RatioN/A
Dividend Growth (5Y) %N/A
Yield on Cost (5Y) %N/A
Continuous Div. since0
Insider Ownership %N/A
Institution Ownership %5.72
Financial Strength
Rank: 8 /10CurrentIndustry MedianHistorical Median
Cash-to-Debt0.03No Debt0.15
Equity-to-Asset0.990.920.54
Interest CoverageNo DebtNo DebtNo Debt
Piotroski F-ScoreN/A30
Profitability Rank
Rank: 2 /10CurrentIndustry MedianHistorical Median
Operating Margin %0.002.430.00
Net Margin %0.005.200.00
ROE %-0.490.05-0.99
ROA %-0.49-0.18-0.98
ROC (Joel Greenblatt) %-325.48-318.75-1565.69
Growth Rank(* per share data)
Rank: 0 /1010-Yr5-Yr1-Yr
Revenue Growth %N/AN/AN/A
EBITDA Growth %N/AN/AN/A
Oprt. Income Growth %N/AN/AN/A
EPS w/o NRI Growth %N/AN/AN/A
FCF Growth %N/AN/AN/A
Book Value Growth %N/AN/AN/A
Momentum Rank
Rank: 0 /10CurrentIndustry MedianHistorical Median
5-Day RSI39.9337.23N/A
9-Day RSI38.5739.81N/A
14-Day RSI41.0743.17N/A
6-1M Momentum %0.100.51N/A
12-1M Momentum %1.451.03N/A
Quarterly
Nov20Mar21Jun21Sep21Dec21
Revenue----------
Net Income--0.30-0.54-0.16-0.88
EPS--0.02-0.07-0.02-0.12
Revenue YoY %----------
Net Income YoY %----------
EPS YoY %----------
Free Cash Flow---0.94-0.06-0.14-0.08
Cash & Equiv.0.030.240.170.040.01
Current Assets0.031.120.650.490.45
Short-Term Debt & CLO0.010.180.180.180.24
Current Liabilities0.030.180.370.321.09
Total Liabilities0.030.490.830.731.47
Stockholders Equity0.02259.39258.85258.69257.81
Warning Signs
SEVERESloan Ratio: Poor quality of earnings
Good Signs
GOODFinancial Strength: Strong Financial Strength
As of 05-20-2022
* All financial numbers are in millions except for per share data, ratios and percentage change.
%GainSP500
1W-0.31-0.73
1M-0.41-12.49
3M0.21-10.03
6M-0.31-16.39
YTD0.21-17.75
1Y1.04-3.96
3Y--12.66
5Y--12.26
10Y--13.75
9.83
0.12
9.59
190113
95056.5
2012201320142015201620172018201920202021CurrentPerformance
--------------------9.83Highest Stock Price
--------------------9.58Lowest Stock Price
--------------------323Market Cap
------------------29.833.2Shares Outstanding-Diluted
----------------N/AN/AAt LossPE Ratio
--------------------1.25PB Ratio
----------------------PS Ratio
---------------------202.39EV-to-EBITDA
----------------20202021TTMPer Share Data
----------------------Revenue per Share
-------------------0.18-0.20Earnings per Share
-------------------0.04-0.06Free Cash Flow per Share
----------------------Dividends per Share
------------------7.777.77Tangible Book per Share
----------------------Median PS Value
----------------------Graham Number
----------------20202021TTMIncome Statement
----------------------Revenue
----------------------Gross Profit
----------------------Gross Margin %
------------------1.601.60Total Operating Expense
-------------------1.60-1.60Operating Income
----------------------Operating Margin %
-------------------1.28-1.28Net Income
----------------------Net Margin %
-------------------1.60-1.60EBIT
-------------------1.60-1.60EBITDA
-------------------0.99-0.49ROE %
-------------------0.98-0.49ROA %
----------------20202021Dec21Balance Sheet
----------------0.030.010.01Cash & Equivalents
----------------0.26259.28259.28Total Assets
----------------0.110.240.24Short-Term Debt & CLO
----------------------Long-Term Debt & CLO
----------------0.241.471.47Total Liabilities
----------------0.02257.81257.81Total Stockholders Equity
----------------0.02257.81257.81Total Equity
----------------20202021TTMCashflow Statement
-------------------1.23-1.23Cash Flow from Operations
-------------------258.75-258.75Cash Flow from Investing
------------------259.96259.90Cash Flow from Financing
-------------------0.02-0.07Net Change in Cash
------------------0.010.01Ending Cash Position
----------------------Capital Expenditure
-------------------1.23-1.23Free Cash Flow
Competitor
TickerCompanyMarket Cap
($M)
PE RatioGF Score
/100
Financial
Strength /10
Profitability
Rank /10
GF Value
Rank /10
Growth
Rank /10
Momentum
Rank /10
NYSE:RKTARocket Internet Growth Opportunities Corp32540.502291000
NAS:PUCKGoal Acquisitions Corp323At Loss2482000
NAS:LFACLF Capital Acquisition Corp II323At Loss1841000
NAS:PEGRProject Energy Reimagined Acquisition Corp322N/A1951000
NYSE:ACAQAthena Consumer Acquisition Corp321N/A1951000
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Financial Strength[2] (Quarterly data, as of Dec. 2021) : Good (8/10)

0
1
2
3
4
5
6
7
8
9

Cash-to-Debt : 0.03

Cash-to-Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. A high ratio indicates that a company is better able to pay back its debt, and is thus able to take on more debt if necessary.


Equity-to-Asset : 0.99

Equity-to-Asset ratio is calculated as total stockholders equity divided by its total assets. Equity-to-Asset ratio can vary greatly across different industries, as they have different capital structure. A company with smaller Equity-to-Asset ratio (more leveraged) may have higher ROE % because of the leverage.


Debt-to-Equity : 0.00

A high Debt-to-Equity ratio generally means that a company has been aggressive in financing its growth with debt.


Piotroski F-Score : N/A

The Piotroski F-Score is used to determine the strength of a firm's financial position, with 9 being the best and 0 being the worst.


WACC : 0.00% vs ROIC : -0.62%

The weighted average cost of capital (WACC) is the rate that a company is expected to pay on average to all its security holders to finance its assets. Return on invested capital (ROIC) measures how well a company generates cash flow relative to the capital it has invested in its business.


Dividend Yield : 0.00%

Dividend yield is a way to measure how much cash flow you are getting for each dollar invested in an equity position.

GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Profitability[3] (Annual data, as of Dec. 2021) : Poor (2/10)

0
1
2
3
4
5
6
7
8
9

Revenue : $0 Mil vs Net Income : $-1 Mil

Revenue is the amount of money that a company actually receives during a specific period, including discounts and deductions for returned merchandise. Net Income is a company's total profit. Net income is calculated by taking revenues and adjusting for the cost of doing business, depreciation, interest, taxes and other expenses.


Cash & Equivalents : $0 Mil vs Long-Term Debt* : $0 Mil

Cash & equivalents are the most liquid assets on the balance sheet. Cash equivalents are assets that are readily convertible into cash. Long-Term Debt* consists of loans and obligations lasting over one year.


Operating Margin % : 0.00%

Operating margin % measures how much profit a company makes on a dollar of sales. Operating Margin % is calculated as Operating Income divided by Revenue.


EPS without NRI : $-0.12

Earnings Per Share without Non-Recurring Items is the amount of earnings without non-recurring items per outstanding share of the company's stock. In calculating earnings per share without non-recurring items, the dividends of preferred stocks and Non Operating Income need to subtracted from the total net income first.


Dividends per Share : $0.00

Dividends per Share is the amount of dividends that the shareholders of a company receive on a per-share basis. It is calculated using the total dividends paid out to shareholders over one fiscal year and the number of shares outstanding.


Free Cash Flow per Share : $-0.00

Free Cash flow per Share is the amount of Free cash flow per outstanding share of the company's stock.

GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Valuation (Quarterly data, as of Dec. 2021)

These valuation metrics should give you a sense of reasonable prices, but be careful with them. Always seek to understand why a valuation is changing over time.


Valuation Chart (Current stock price : $9.75)


PE Ratio without NRI : At Loss

The price-to-earnings ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than regular PE Ratio.


PB Ratio : 0.00

The price-to-book ratio measures the valuation of the stock relative to the underlying asset of the company.


PS Ratio : 0.00

The price-to-sales ratio is a valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.


Price-to-Free-Cash-Flow : 0.00

Price-to-free-cash-flow is very similar to the valuation metric of price-to-operating-cash-flow but is considered a more exact measure, owing to the fact that it uses free cash flow, which subtracts capital expenditures from a company's total operating cash flow, thereby reflecting the actual cash flow available to fund non-asset-related growth.


EV-to-EBIT : 0.00

Enterprise value of a company divided by its trailing 12 months earnings before interest and taxes (EBIT).

GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Valuation Bands

In these charts the 10-year valuation bands of the price-to-earnings ratio (PE Ratio), price-to-book ratio (PB Ratio), price-to-sales ratio (PS Ratio) and price-to-operating-cash-flow ratio (POCF) are drawn together with the historical stock prices. For example, the upper line of the PE band is where the stock price would have been if it were always traded at the maximum PE ratio of the past 10 years. The lower line of the PE band is where the stock price would have been if it were always traded at the lowest PE ratio of the past 10 years. It is always better if the stock price is close to the lower line, which indicates a lower valuation.


Historical Price and PE Band


Historical Price and PS Band


Historical Price and PB Band


Historical Price and Price-to-Operating-Cash-Flow (POCF) Band

GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Warning Signs

GuruFocus conducted a thorough checkup using a checklist of 32 items that cover the areas of financial strength, profitability, growth, and valuation of each company. The purpose of Warning Signs is to warn you that the company may have red flags in certain areas, helping to avoid overlooking them. These warning signs do not necessarily mean you should not invest in the stock. But you should be aware of them before you invest.


Severe Warning Signs

Sloan Ratio : Poor quality of earnings

When Sloan Ratio (99.78)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

Good Signs

Financial Strength : Strong Financial Strength

Goal Acquisitions Corp shows strong financial strength.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Competitive Comparison


5 Year Price Change Comparison


Financial Strength

CompanyFinancial StrengthCash-to-DebtEquity-to-AssetDebt-to-EquityInterest CoveragePiotroski F-ScoreAltman Z-ScoreBeneish M-ScoreWACC %ROIC %
NYSE:PONDAngel Pond Holdings Corp9/10No Debt0.920.00No DebtN/A0.000.000.00-0.59
NYSE:RKTARocket Internet Growth Opportunities Corp9/10No Debt0.930.00No DebtN/A0.000.000.00-0.18
NAS:PUCKGoal Acquisitions Corp8/100.030.990.00No DebtN/A0.000.000.00-0.62
NAS:GSAQGlobal Synergy Acquisition Corp7/10No Debt0.920.000.00N/A0.000.000.00-0.47
NYSE:ACAQAthena Consumer Acquisition Corp5/10N/A0.140.00No DebtN/A0.000.000.00-2.13
NAS:IOACInnovative International Acquisition Corp5/10No Debt0.940.00No DebtN/A0.000.000.00-2.56
NAS:NCACNewcourt Acquisition Corp5/100.11-0.25-1.67No DebtN/A0.000.000.00-23.28
NAS:PEGRProject Energy Reimagined Acquisition Corp5/100.00-0.05-7.56No DebtN/A0.000.000.00-5.16
NAS:LFACLF Capital Acquisition Corp II4/100.000.000.00No Debt00.000.000.000.00
XAMS:ODYSYOdyssey Acquisition SA2/100.000.000.000.00N/A0.000.000.000.00

Profitability

CompanyProfitability RankOperating
Margin %
Net Margin %ROE %ROA %Price-to-Free-Cash-FlowROC (Joel Greenblatt) %3-Year Revenue Growth %3-Year EBITDA Growth %3-Year EPS w/o NRI Growth %
NAS:GSAQGlobal Synergy Acquisition Corp2/100.000.003.503.210.002554.340.000.000.00
NAS:PUCKGoal Acquisitions Corp2/100.000.00-0.49-0.490.00-325.480.000.000.00
NYSE:PONDAngel Pond Holdings Corp1/100.000.001.611.470.00-162.730.000.000.00
NYSE:ACAQAthena Consumer Acquisition Corp1/100.000.00-8.70-2.130.000.000.000.000.00
NAS:IOACInnovative International Acquisition Corp1/100.000.00-2.68-2.520.00-5271.930.000.000.00
NAS:LFACLF Capital Acquisition Corp II1/100.000.000.000.000.000.000.000.000.00
NAS:NCACNewcourt Acquisition Corp1/100.000.000.00-31.400.000.000.000.000.00
XAMS:ODYSYOdyssey Acquisition SA1/100.000.000.000.000.000.000.000.000.00
NAS:PEGRProject Energy Reimagined Acquisition Corp1/100.000.000.00-6.790.000.000.000.000.00
NYSE:RKTARocket Internet Growth Opportunities Corp1/100.000.004.844.450.00-239.080.000.000.00

Valuation

CompanyPE RatioPB RatioPS RatioPrice-to-Intrinsic-Value-Projected-FCFPrice-to-Intrinsic-Value-DCF (Earnings Based)Price-to-Median-PS-ValuePrice-to-Peter-Lynch-Fair-ValuePrice-to-Graham-NumberEarnings Yield (Joel Greenblatt) %Forward Rate of Return (Yacktman) %
NYSE:PONDAngel Pond Holdings CorpAt Loss1.360.000.000.000.000.000.00-0.610.00
NAS:PUCKGoal Acquisitions CorpAt Loss1.250.000.000.000.000.000.00-0.490.00
NAS:IOACInnovative International Acquisition CorpAt Loss1.450.000.000.000.000.000.00-0.940.00
NAS:LFACLF Capital Acquisition Corp IIAt Loss0.000.000.000.000.000.000.000.000.00
NAS:GSAQGlobal Synergy Acquisition Corp38.121.330.000.000.000.000.001.502.840.00
NYSE:RKTARocket Internet Growth Opportunities Corp40.501.300.000.000.000.000.001.53-0.100.00
NYSE:ACAQAthena Consumer Acquisition CorpN/A10050.050.000.000.000.000.000.000.000.00
NAS:NCACNewcourt Acquisition CorpN/A0.000.000.000.000.000.000.000.000.00
XAMS:ODYSYOdyssey Acquisition SAN/A0.0060.740.000.000.000.000.000.000.00
NAS:PEGRProject Energy Reimagined Acquisition CorpN/A0.000.000.000.000.000.000.000.000.00
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Peter Lynch Chart[4]

GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Per Share Data


Per Share Data

Dec20
Dec21
TTM Fiscal Period
--
-0.05
-0.05
EBITDA per Share
--
-0.05
-0.05
EBIT per Share
--
-0.18
-0.20
Earnings per Share (Diluted)
--
-0.18
-0.20
EPS without NRI
--
-0.04
-0.06
Free Cash Flow per Share
--
-0.04
-0.06
Operating Cash Flow per Share
--
--
-- Cash per Share
--
7.77
7.77
Book Value per Share
--
7.77
7.77
Tangible Book per Share
--
0.01
0.01
Total Debt per Share

Ratios

Dec20
Dec21
TTM Fiscal Period
--
-0.99
-0.49
ROE %
--
-0.98
-0.49
ROA %
--
-0.99
-0.49
Return-on-Tangible-Equity
--
-0.98
-0.49
Return-on-Tangible-Asset
--
-1,566
-325
ROC (Joel Greenblatt) %
--
-1.24
-0.62
ROCE %
--
-1.23
-0.62
ROIC %
--
--
-- Effective Interest Rate on Debt %
4.42
0.00
0.00
Debt-to-Equity
0.09
0.99
0.99
Equity-to-Asset
0.40
0.00
0.00
Debt-to-Asset
0.91
0.01
0.01
Liabilities-to-Assets
* All financial numbers are in millions except for per share data, ratios and percentage change. When Return-on-Tangible-Equity displays Neg. E, it means the the tangible equity is negative.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Financial Statement

Income Statement

Dec20
Dec21
TTM Fiscal Period
--
1.60
1.60
Other Operating Expense
--
1.60
1.60
Total Operating Expense
--
-1.60
-1.60
Operating Income
--
0.03
0.03
  Interest Income
--
0.03
0.03
Net Interest Income
--
0.29
0.29
Other Income (Expense)
--
-1.28
-1.28
Pre-Tax Income
--
-1.28
-1.28
Net Income (Continuing Operations)
--
-1.28
-1.28
Net Income
--
-0.18
-0.17
EPS (Basic)
--
-0.18
-0.20
EPS (Diluted)
--
29.80
33.20
Shares Outstanding (Diluted Average)
--
-1.60
-1.60
EBIT
--
-1.60
-1.60
EBITDA
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Financial Statement

Cashflow Statement

Dec20
Dec21
TTM Fiscal Period
--
-1.28
-1.28
Net Income From Continuing Operations
--
-0.49
-0.49
  Change In Prepaid Assets
--
0.86
--   Change In Payables And Accrued Expense
--
0.37
0.37
Change In Working Capital
--
-0.32
-0.32
Cash Flow from Others
--
-1.23
-1.23
Cash Flow from Operations
--
-259
-259
Cash Flow from Investing
--
254
254
Issuance of Stock
--
0.13
0.13
  Issuance of Debt
--
--
--   Payments of Debt
--
0.13
0.13
Net Issuance of Debt
--
6.25
6.20
Other Financing
--
260
260
Cash Flow from Financing
--
0.03
0.08
Beginning Cash Position
--
-0.02
-0.07
Net Change in Cash
--
0.01
0.01
Ending Cash Position
--
-1.23
-1.23
Free Cash Flow
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Financial Satement

Balance Sheet

Dec20
Dec21
TTM Fiscal Period
0.03
0.01
0.01
  Cash And Cash Equivalents
0.03
0.01
0.01
Cash, Cash Equivalents, Marketable Securities
0.24
0.44
0.44
Other Current Assets
0.26
0.45
0.45
Total Current Assets
--
259
259
Other Long Term Assets
--
259
259
Total Long-Term Assets
0.26
259
259
Total Assets
0.13
0.86
0.86
  Current Accrued Expense
0.13
0.86
0.86
Accounts Payable & Accrued Expense
0.11
0.24
0.24
  Short-Term Debt
0.11
0.24
0.24
Short-Term Debt & Capital Lease Obligation
--
-0.00
-0.00
Other Current Liabilities
0.24
1.09
1.09
Total Current Liabilities
--
--
--   Long-Term Debt
--
--
-- Long-Term Debt & Capital Lease Obligation
4.42
0.00
0.00
Debt-to-Equity
--
0.37
0.37
Other Long-Term Liabilities
--
0.37
0.37
Total Long-Term Liabilities
0.24
1.47
1.47
Total Liabilities
0.00
259
259
Common Stock
-0.00
-1.28
-1.28
Retained Earnings
0.02
0.34
0.34
Additional Paid-In Capital
--
0.00
0.00
Other Stockholders Equity
0.02
258
258
Total Stockholders Equity
0.02
258
258
Total Equity
0.09
0.99
0.99
Equity-to-Asset
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Valuation Ratios

Valuation Ratios

Dec20
Dec21
TTM Fiscal Period
N/A
N/A
At Loss PE Ratio
N/A
N/A
At Loss PE Ratio without NRI

Valuation and Quality

Dec20
Dec21
TTM Fiscal Period
--
-0.04
-0.04
Net Cash per Share
--
-0.03
-0.03
Net Current Asset Value
--
-0.04
-0.04
Net-Net Working Capital
0.39
981
1.00
Scaled Net Operating Assets
--
99.78
-- Sloan Ratio %
1.10
0.41
0.41
Current Ratio
1.10
0.41
0.41
Quick Ratio
0.12
0.01
0.01
Cash Ratio
No Debt
No Debt
No Debt Interest Coverage
--
7.18
7.25
Shares Outstanding (Basic Average)
--
33.16
33.16
Shares Outstanding (EOP)
04/15/22
  Filing Date
04/15/22
  Restated Filing Date
* All financial numbers are in millions except for per share data, ratios and percentage change.
GuruFocus Manual of Stocks™  |  May 20, 2022
Goal Acquisitions Corp (NAS:PUCK)
www.gurufocus.com/stock/NAS:PUCK

Explanation

1. Predictability Rank

GuruFocus Predictability Rank is a proprietary ranking of the consistency of a business. We rank the predictability of companies based on the consistency of their revenue per share and EBITDA (earnings before interest, tax, depreciation and amortization) per share over the past 10 fiscal years. Our study found that there is a strong correlation between the stock performance and the predictability of a business. Over the long term, companies with higher predictability also have better stock performance.

The rank is from 1-star to 5-star, with 5-star as the best.

2. Financial Strength

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

  1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
  2. Debt to revenue ratio. The lower, the better.
  3. Altman Z-Score.

The rank is from 1 to 10, with 10 as the highest.

A Financial Strength rank of 8 or above indicates good financial strength; between 4-7 indicates fair financial strength; 3 or below means poor financial strength.

3. Profitability Rank

GuruFocus Profitability Rank indicates how profitable a company is and how likely it is that the company's business will stay that way. It is based on these factors:

  1. Operating Margin %.
  2. Piotroski F-Score.
  3. Trend of the Operating Margin percentage (five-year average). A company with an uptrend in profit margin will have a higher rank.
  4. Consistency of the profitability.
  5. Predictability Rank.

The rank is from 1 to 10, with 10 as the highest.

A Profitability Rank of 8 or above indicates good profitability; between 4-7 indicates fair profitability; 3 or below means poor profitability.

4. Peter Lynch Chart

In Peter Lynch's excellent book, "One Up on Wall Street," he used many charts to illustrate the valuation of stocks. “A quick way to tell if a stock is overpriced is to compare the price line to the earnings line. If you bought familiar growth companies – such as Shoney’s, The Limited, or Marriott – when the stock price fell well below the earnings line, and sold them when the stock price rose dramatically above it, the chances are you’d do pretty well.”

The original Peter Lynch Chart does have limitations due to the right side price scale is pre-set at 15 times the earnings scale on the left side. When the stock price and earnings line coincide, the price-to-earnings ratio is always 15 times. Instead of using the fixed PE Ratio of 15, our approach is using 15-year historical median PE without NRI Ratio for each stock.

The Peter Lynch Chart with earnings line at median PE without NRI ratio works well for the companies with steady growth and earnings trends, or the stalwarts, as coined by Lynch. These companies tend to be found in sectors such as consumer staples, healthcare, and utilities, where the consumption of the product or service is relatively independent of economic conditions. It does not work well with the sectors that are cyclical: industrials, chemicals, durable goods, and so forth.

5. GF Value

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 evaluations:

  1. Possible Value Trap, Think Twice
  2. Significantly Overvalued
  3. Modestly Overvalued
  4. Fairly Valued
  5. Modestly Undervalued
  6. Significantly Undervalued
There is only a sufficient margin of safety when the stock is undervalued.

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