Albemarle Corporation (NYSE:ALB) has a current MF Rank of 6016. The Magic Formula was developed by hedge fund manager Joel Greenblatt, the intention of the formula is to locate high quality companies that are trading at an attractive price.
One of the most famous sayings in the share market is “buy low, sell high”. This may seem like an oversimplified statement, but there are many inexperienced investors who frequently do the complete opposite. Many investors may be considering too closely at stocks that have been on the rise, and they might not be checking on the underlying fundamental data. They may be hoping to ride the wave higher, but may end up shaking their heads. On the flip side, many investors may hold onto stocks for far too long after they have slipped drastically. Waiting for a bounce that may never come can cause frustration and plenty of second guessing. Successful investors are typically able to uncover stocks that are undervalued at a certain price. This may take a lot of practice and dedication, but it may do wonders for the health of the portfolio.
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow. The FCF Growth of Albemarle Corporation (NYSE:ALB) is -0.833712. Free cash flow (FCF) is the cash produced by the enterprise minus capital expenditure. This cash is what a enterprise uses to meet its financial obligations, such as making payments on debt or to pay out dividends.
The Free Cash Flow Score (FCF Score) is a useful mechanism in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow. The FCF Score of Albemarle Corporation (NYSE:ALB) is -0.211789. Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.
The Return on Invested Capital (aka ROIC) for Albemarle Corporation (NYSE:ALB) is 0.124054. The Return on Invested Capital is a ratio that determines whether a enterprise is profitable or not. It tells investors how well a enterprise is turning their capital into profits. The ROIC is determined by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is determined by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a mechanism in evaluating the quality of a enterprise’s ROIC over the timeframe of five years. The ROIC Quality of Albemarle Corporation (NYSE:ALB) is 2.670896. This is determined by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is determined using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Albemarle Corporation (NYSE:ALB) is 0.126494.
Shareholder Yield
The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a enterprise through a combination of dividends, share repurchases and debt reduction. The Shareholder Yield of Albemarle Corporation (NYSE:ALB) is 0.032209. This percentage is determined by adding the dividend yield plus the percentage of shares repurchased. Dividends are a common way that companies distribute cash to their shareholders. Similarly, cash repurchases and a reduction of debt can boost the shareholder value, too. Another way to figure out the effectiveness of a enterprise’s distributions is by considering at the Shareholder yield (Mebane Faber). The Shareholder Yield (Mebane Faber) of Albemarle Corporation NYSE:ALB is 0.06169. This number is determined by considering at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.
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Investors have the ability to approach the share market from various angles. This may include using technical analysis, fundamental analysis, or a combination or the two. Investors watching the technical levels may be trying to chart patterns and unveil trends in equity price movement. Investors tracking the fundamentals may be considering closely at many nonstandard factors. They may be focused on industry performance, earnings estimates, dividend payouts, and different factors. They might also be gazing how the enterprise is run, and trying to determine the true value of the enterprise. Keeping track of all the data may seem overwhelming, but it may assist give a required jolt to the portfolio.
The Value Composite One (VC1) is a method that investors use to figure out a enterprise’s value. The VC1 of Albemarle Corporation (NYSE:ALB) is 50. A enterprise with a value of 0 is thought to be an undervalued enterprise, while a enterprise with a value of 100 is considered an overvalued enterprise. The VC1 is determined 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 determined with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Albemarle Corporation (NYSE:ALB) is 42.
Investors may be interested in studying the Gross Margin score on shares of Albemarle Corporation (NYSE:ALB). The name right now has a score of 44.00000. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.
ERP5 Rank
The ERP5 Rank is an investment mechanism that analysts use to unveil undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Albemarle Corporation (NYSE:ALB) is 7448. The lower the ERP5 rank, the more undervalued a enterprise is thought to be.
C-Score - Montier
Albemarle Corporation (NYSE:ALB) right now has a Montier C-score of 3.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to sum the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing different current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.
F Score
At the time of writing, Albemarle Corporation (NYSE:ALB) has a Piotroski F-Score of 6. The F-Score may assist unveil companies with strengthening balance sheets. The score may also be used to locate the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the enterprise 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 different end, a stock with a score from 0-2 would be viewed as weak.
Value investors may be scanning the shelves for bargain stocks. They may be considering to locate those shares that haven’t been doing a whole lot and are being generally overlooked by the investing world. Value investors may be searching for stocks with lower price to earnings ratios that possess higher dividend yields. Investors considering for growth stocks may be willing to shell out a little more for a stock that has the possibility of increasing earnings per share at a quicker pace. Some investors may favor one category of stocks over another, but they may are required to find a combination at some point. As markets tend to move in cycles, it may be paramount to align the portfolio to the category that is best positioned to make consistent gains in the future.
