Mohanram G-Score is a financial indicator developed by professor Partha Mohanram to help investors find the best investment opportunities in the growth stocks. Companies have higher G-score tends to generate higher return. According to his study, the best growth stocks that have a G-Score greater than 6 tend to beat the market, while those with a G-Score lower than 1 tend to have negative absolute returns.
Thus, the zones of discrimination were as such:
Good or high score = 6, 7, 8
Bad or low score = 0, 1
Innovotech has an G-score of 7. It is a good or high score, which tends to beat the market.
The historical rank and industry rank for Innovotech's Mohanram G-Score or its related term are showing as below:
TSXV:IOT'
s Mohanram G-Score Range Over the Past 10 Years
Min: 2 Med: 5 Max: 7
Current: 7
During the past 13 years, the highest Piotroski G-score of Innovotech was 7. The lowest was 2. And the median was 5.
Innovotech Mohanram G-Score Historical Data
The historical data trend for Innovotech's Mohanram G-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Innovotech's Mohanram G-Score
For the Biotechnology subindustry, Innovotech's Mohanram G-Score, along with its competitors' market caps and Mohanram G-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Innovotech's Mohanram G-Score Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Innovotech's Mohanram G-Score distribution charts can be found below:
* The bar in red indicates where Innovotech's Mohanram G-Score falls into.
The calculation of the Mohanram G-score consists of eight criteria. Assign one point for each criterion met, then add up all the points to get the G-Score.
Profitability
Question 1. Return on Assets (ROA)
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. It measures how well a company uses its asset to generate earnings.
Score 1 if ROA > ROA Industry Median, 0 otherwise.
Score 1 if CAPEX Intensity > CAPEX Intensity Industry Median, 0 otherwise.
Question 8. Advertising Expenditure Intensity
Advertising Expenditure Intensity is calcualted by Advertising Expenditure divided by the beginning Total Assets. Note that Advertising Expenditure is not reported as a seperate line item for many companies, thus Selling, General, & Admin. Expense is used in this calculation.
Score 1 if Advertising Expenditure Intensity > Advertising Expenditure Intensity Industry Median, 0 otherwise.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Note that all the Industry Median used for comparison in his original research, are substituted with Sector Median due to the limitation of data within certain countries.
Good or high score = 6, 7, 8
Bad or low score = 0, 1
Innovotech has an G-score of 7. It is a good or high score, which tends to beat the market.
Partha Mohanram is the John H. Watson Chair in Value Investing at Rotman and the Acting Vice-Dean of Research Strategy and Resources.
In 2000, he wrote a research paper called "Separating Winners from Losers Among Low Book-to-Market Stocks Using Financial Statement Analysis".
This paper tests whether a strategy based on financial statement analysis of low book-to-market (growth) stocks is successful in differentiating between winners and losers in terms of future stock performance. Based on the research, a strategy based on buying high G-score (6, 7 or 8) firms and shorting low G-score (0 or 1) firms consistently earns significant excess returns. Further, the results do not support a risk based explanation for the book-to-market effect as the strategy returns positive returns in all years, and firms that ex-ante appear less risky have better future returns.
To conclude, one can use a modified fundamental analysis strategy (G-score) to identify mispricing and earn substantial abnormal returns.
Innovotech Mohanram G-Score Related Terms
Thank you for viewing the detailed overview of Innovotech's Mohanram G-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Innovotech Inc is a Canada-based company that provides solutions to client biofilm problems through its biofilm contract research department. The core activities of the company are sales of its products, conducting contract research for outside customers, and research and development to identify products for future commercialization. The products of the company include human and fungal biofilm susceptibility tests, a seed treatment designed to combat bacterial and fungal diseases, and an assay used in growing microbial biofilms for research purposes. Geographically, the firm has a business presence in the United States, Canada, and the Rest of the world of which the majority of the revenue is derived from the United States.
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