A Look Behind What’s Driving First Vanadium Corp. (TSXV:FVAN)’ Earnings

Date: Oct 12, 2018

Here we will take a look at several key ratios for First Vanadium Corp. (TSXV:FVAN), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the firm’s net asset value per share to it’s current price.  This is helpful in determining how the market values the company compared to it’s actual worth.  The Book to Market value of First Vanadium Corp. currently stands at 0.062125.

In terms of EBITDA Yield, First Vanadium Corp. (TSXV:FVAN) currently has a value of . This value is derived by dividing EBITDA by Enterprise Value.

First Vanadium Corp. (TSXV:FVAN) presently has a current ratio of 18.44. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for First Vanadium Corp. TSXV:FVAN is 16.096551.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for First Vanadium Corp. (TSXV:FVAN) is -66.246532.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for First Vanadium Corp. (TSXV:FVAN) is -38.561978. This ratio is found by taking the current share price and dividing by earnings per share.

Looking at some ROIC (Return on Invested Capital) numbers, First Vanadium Corp. (TSXV:FVAN)’s ROIC is -0.977463. The ROIC 5 year average is -1.672828 and the ROIC Quality ratio is -2.963551. 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.

Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of First Vanadium Corp. (TSXV:FVAN) is -2.662409.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of First Vanadium Corp. (TSXV:FVAN) is -0.995519.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

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 First Vanadium Corp. (TSXV:FVAN) is 69.00000.  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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