Integral Technologies, Inc. (OTCPK:ITKG) Quant Signal & Valuation Review

Here we will take a look into some valuation metrics for Integral Technologies, Inc. OTCPK:ITKG shares.

Price-To-Cash-Flow-Ratio is a term that indicates the degree of cash flow valuation of the enterprise in the securities market. It is derived from the P/E – Price Earnings Ratio, in which the profit is replaced by cash flow. Unlike P/E, the ratio isn’t affected by the chosen depreciation methods, making it suitable for geographic comparison.  Integral Technologies, Inc. currently has a P/CF ratio of -5.731383.


Watching some historical volatility numbers on shares of Integral Technologies, Inc. (OTCPK:ITKG), we can see that the 12 month volatility is presently 110.077500. The 6 month volatility is 117.035900, and the 3 month is spotted at 120.438500. 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. 

We can now take a quick look at some historical stock price index data. Integral Technologies, Inc. (OTCPK:ITKG) presently has a 10 month price index of 0.96604. 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 0.46545, the 24 month is 0.13653, and the 36 month is 0.11636. Narrowing in a bit closer, the 5 month price index is 1.32815, the 3 month is 1.06667, and the 1 month is currently 1.12750.

Valuation Ratios

Looking at some ROIC (Return on Invested Capital) numbers, Integral Technologies, Inc. (OTCPK:ITKG)’s ROIC is -37.974026. The ROIC 5 year average is -182.400000 and the ROIC Quality ratio is 0.678941. 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.  In terms of EBITDA Yield, Integral Technologies, Inc. (OTCPK:ITKG) currently has a value of -0.348409. This value is derived by dividing EBITDA by Enterprise Value.

The Price to Book ratio (Current share price / Book value per share) is a good valuation measure you can use to find undervalued investment ideas.  A low Price to Book could indicate that the shares are undervalued in their industry.  Generally speaking a P/B ratio under 1 is considered low and is best used in relation to asset-heavy firms.  At the time of writing Integral Technologies, Inc. (OTCPK:ITKG) has a price to book ratio of -1.929376.

The Leverage Ratio of Integral Technologies, Inc. (OTCPK:ITKG) is 6.365123. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

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 Integral Technologies, Inc. (OTCPK:ITKG) is -17.058824.  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.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Integral Technologies, Inc. (OTCPK:ITKG) is 100.  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 Integral Technologies, Inc. (OTCPK:ITKG) is 100.

At the time of writing, Integral Technologies, Inc. (OTCPK:ITKG) has a Piotroski F-Score of 2. 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.
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 Integral Technologies, Inc. OTCPK:ITKG is -1.929376.  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 Integral Technologies, Inc. (OTCPK:ITKG) is -5.731383.  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 Integral Technologies, Inc. (OTCPK:ITKG) is -2.071862. This ratio is found by taking the current share price and dividing by earnings per share.

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