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Rockwell Medical (FRA:RWMA) GF Value Rank : 7 (As of May. 05, 2024)


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What is Rockwell Medical GF Value Rank?

Rockwell Medical has the GF Value Rank of 7.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison of Rockwell Medical's GF Value Rank

For the Drug Manufacturers - Specialty & Generic subindustry, Rockwell Medical's GF Value Rank, along with its competitors' market caps and GF Value Rank 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.


Rockwell Medical's GF Value Rank Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Rockwell Medical's GF Value Rank distribution charts can be found below:

* The bar in red indicates where Rockwell Medical's GF Value Rank falls into.



Rockwell Medical GF Value Rank Related Terms

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Rockwell Medical (FRA:RWMA) Business Description

Traded in Other Exchanges
Address
30142 S. Wixom Road, Wixom, MI, USA, 48393
Rockwell Medical Inc is a healthcare company that develops, manufactures, commercializes, and distributes a portfolio of hemodialysis products for dialysis providers. Rockwell Medical's mission is to provide dialysis clinics and patients with the highest quality products supported by the best customer service in the industry. It is focused on innovative, long-term growth strategies that enhance products, processes, and people, enabling the company to deliver exceptional value to the healthcare system and provide a positive impact on the lives of hemodialysis patients.

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