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Cano Health (Cano Health) Predictability Rank


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What is Cano Health Predictability Rank?

Not Rated

Warren Buffett said many times that the companies he likes are:

1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.

It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.

GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.

Cano Health Predictability Rank Calculation

In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.

Our study may be subject to these biases and assumptions:

Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.

The correlation between business predictability and investment returns of a company is showed below.

Correlation Between Business Predictability and Investment Returns

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%1.1%3.1%


















For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.

Predictability Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-Star (non-predictable)Average among all
% Out of All 2403 Stocks 3.3% 2.9% 3.7% 3.3% 3.3% 3.7% 3.3% 76.3% 100%
% that are in Loss (10y) 3% 10% 8% 9% 11% 18% 16% 45% 37%
Average Gain (10y) 364.6% 330.9% 278.0% 235.1% 243.5% 227.8% 154.8% 100.0% 138.1%
Median Gain (10y) 238.5% 193.5% 171.0% 159.0% 132.5% 113.5% 87.0% 13.0% 39.0%
Maximum Gainer 2228.0% 2547.0% 2452.0% 2852.0% 2432.0% 1892.0% 1807.0% 11483.0% 11483.0%
Maximum Loser -82.0% -53.0% -67.0% -100.0% -83.0% -100.0% -78.0% -100.0% -100.0%
Annualized Average Gain 15.4% 14.6% 13.2% 12.0% 12.2% 11.7% 9.1% 6.7% 8.4%
Annualized Median Gain 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
















For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank

Also read:

Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety

Cano Health Predictability Rank Related Terms

Thank you for viewing the detailed overview of Cano Health's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Cano Health (Cano Health) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Cano Health Inc (OTCPK:CANOQ) » Definitions » Predictability Rank
Comparable Companies
CCEL NVOS CCM PHCI AIH ATIP CLRD SNDA VLXC AMS HCA SAU:4013 SZSE:300015 HKSE:06618 XTER:FRE BKK:BDMS XKLS:5225 BSP:RDOR3 XTER:FME UHS
Traded in Other Exchanges
N/A
Address
9725 NW 117th Avenue, Suite 200, Miami, FL, USA, 33178
Website
https://www.canohealth.com
Cano Health Inc operates value-based primary care centers and supports affiliated medical practices that specialize in primary care for seniors in Florida, Texas, Nevada, and Puerto Rico.
Executives
Elliot Cooperstone director, 10 percent owner C/O CANO HEALTH, INC., 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Eladio Gil officer: Interim CFO 9725 NW 17TH AVENUE, SUITE 200, MIAMI FL 33178
Robert Camerlinck officer: Chief Operating Officer 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Richard Aguilar officer: Chief Clinical Officer 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Mark D. Kent officer: Interim CEO 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
David J Armstrong officer: See Remarks 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Brian D Koppy officer: Chief Financial Officer 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Lewis Gold director 1235 SPANISH RIVER ROAD, BOCA RATON FL 33432
Marlow Hernandez director, officer: See Remarks 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Solomon D Trujillo director 1000 NICOLLET MALL, TPS-3255, MINNEAPOLIS MN 55403
Alan Muney director 48 MONROE TURNPIKE, TRUMBULL CT 06611
Kim M Rivera director 601 HAWAII ST, EL SEGUNDO CA 90245
Itc Rumba, Llc 10 percent owner 444 MADISON AVENUE, 35TH FLOOR, NEW YORK NY 10022
Jacqueline Guichelaar director C/O CANO HEALTH, INC., 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178
Angel L Morales director C/O CANO HEALTH, INC., 9725 NW 117TH AVENUE, SUITE 200, MIAMI FL 33178