The financial health of Minds Machines
In investing, knowing which numbers you should pay attention to and which you should discard is half the battle. Honing in on the measures that tell us what’s really going on can save us a lot of time and pain. It also allows us to move faster than the competition.
At Stockopedia, we strive to identify these key measures. One of the most useful we have found so far is Piotroski’s F-Score - and the F-Score has good news for shareholders of micro cap high flyer Minds Machines (LON:MMX), which operates in the Technology sector. The Company operates in the domain name industry, providing end-to-end domain services.
GET MORE DATA-DRIVEN INSIGHTS INTO LON:MMX »
Minds Machines (LON:MMX): recent performance
For the six months ended 30 June 2019, Minds Machines Group Ltd revenues increased 40% to $7.4M
Why the Piotroski F-Score matters
Followers of renowned accounting professor Joseph Piotroski are well aware of the checklist that made him famous in 2002. Piotroski is behind the F-Score: a simple indicator to highlight neglected stocks with improving prospects.
What's good about the F-Score is that it is essentially an entire quality and fundamental momentum screen in a single number, succinctly summing up the financial health trend of a company. Applying it as a filter on top of almost any strategy can help to increase returns and reduce risk.
Minds Machines's F-Score: what does it mean?
Minds Machines scores 8 out of a possible 9. In his landmark academic paper "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers", Piotroksi showed that by investing in companies scoring 8 or 9 by these measures over a 20-year test period through to 1996, investor returns could be increased by an astounding 7.5% each year.
Find more high-quality stocks
This F-Score suggests Minds Machines is a promising investment candidate and is worthy of further research - but it is only a first step. Higher F-Score stocks often trade at a premium compared to other stocks. Investors like to pay up for quality but it's important not to pay too much. We suggest checking the various value factor measures for Minds Machines on the group's StockReport.
For years, the Stockopedia team have been poring over studies to see what works in investing. That's how we found the F-Score, but that's not all we've found... So take a two-week free trial today to see how Stockopedia can help you to build a better portfolio.