Checking on the Magic Formula Rank For Schweitzer-Mauduit International, Inc. (NYSE:SWM), H.B. Fuller Company (NYSE:FUL)

Schweitzer-Mauduit International, Inc. (NYSE:SWM) has a current MF Rank of 3006. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to uncover high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.

Investors may be doing a mid-year review of the portfolio. They may be gazing to see what adjustments are required to be made for the second half of the year. Maybe there were some great performers that don’t need much attention. There may also be some not so great performers that are required to be looked at a little bit closer. As the next earnings reports become available, investors will be able to scrutinize the numbers. Investors may be tracking sell-side expert projections heading into earnings. Analysts will frequently update their numbers as the earnings date formulas.

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 Schweitzer-Mauduit International, Inc. (NYSE:SWM) is -0.16.  Free cash flow (FCF) is the cash produced by the firm minus capital expenditure.  This cash is what a firm 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 resource 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 Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 0.56.  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 Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 0.21.  The Return on Invested Capital is a ratio that determines whether a firm is profitable or not.  It tells investors how well a firm 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 resource in evaluating the quality of a firm’s ROIC over the stage of five years.  The ROIC Quality of Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 7.97.  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 Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 0.23.

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a firm through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 0.06.  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 accelerate the shareholder value, too.  Another way to understand the effectiveness of a firm’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Schweitzer-Mauduit International, Inc. NYSE:SWM is 0.13.  This number is determined by gazing at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The Value Composite One (VC1) is a method that investors use to understand a firm’s value.  The VC1 of Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 20.  A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm.  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 Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 13.

Investors may be interested in studying the Gross Margin score on shares of Schweitzer-Mauduit International, Inc. (NYSE:SWM). The name right now has a score of 31. 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 resource that analysts use to locate undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Schweitzer-Mauduit International, Inc. (NYSE:SWM) is 2421. The lower the ERP5 rank, the more undervalued a firm is thought to be.

C-Score – Montier

Schweitzer-Mauduit International, Inc. (NYSE:SWM) right now has a Montier C-score of 1. 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 alternate current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

F Score

At the time of writing, Schweitzer-Mauduit International, Inc. (NYSE:SWM) has a Piotroski F-Score of 5. The F-Score may aid locate companies with strengthening balance sheets. The score may also be used to uncover the weak performers. Joseph Piotroski developed the F-Score which employs nine nonstandard variables based on the firm 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 alternate end, a stock with a score from 0-2 would be viewed as weak.

Investors are always striving to discover the next great stock to add to the portfolio. Finding that next winner may involve some dedicated diligence work and perseverance. Sorting through the immense amount of information about public companies can be a chore. Many farsighted investors will attack the equity markets from many various angles. This may encompass keeping close tabs on fundamental and technical data. This may also include monitoring expert opinions and tracking institutional transactions.

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The MF Rank developed by hedge fund manager Joel Greenblatt, is intended uncover high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. H.B. Fuller Company (NYSE:FUL) has a current MF Rank of 6325.

Investors may be gazing for solid stocks to add to the portfolio. Sometimes, investors may single out to go against the grain and try something that nobody else is doing. This typically comes with plenty of time and diligence work examining those appealing stocks. Digging into the fundamentals as well as tracking technical levels can aid separate the winners from the losers. Investors who are able to keep the imperative temperament may be able to cope with market volatility and get positioned to take advantage of any opportunity that presents itself. 

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 H.B. Fuller Company (NYSE:FUL) is -0.23.  Free cash flow (FCF) is the cash produced by the firm minus capital expenditure.  This cash is what a firm 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 resource 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 H.B. Fuller Company (NYSE:FUL) is 0.43.  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.

Investors may be interested in studying the Gross Margin score on shares of H.B. Fuller Company (NYSE:FUL). The name right now has a score of 34. 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.

The Return on Invested Capital (aka ROIC) for H.B. Fuller Company (NYSE:FUL) is 0.16.  The Return on Invested Capital is a ratio that determines whether a firm is profitable or not.  It tells investors how well a firm 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 resource in evaluating the quality of a firm’s ROIC over the stage of five years.  The ROIC Quality of H.B. Fuller Company (NYSE:FUL) is 2.90.  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 H.B. Fuller Company (NYSE:FUL) is 0.16.

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a firm through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of H.B. Fuller Company (NYSE:FUL) is 0.01.  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 accelerate the shareholder value, too.  Another way to understand the effectiveness of a firm’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of H.B. Fuller Company NYSE:FUL is -0.72.  This number is determined by gazing at the measure of the dividend yield plus percentage of sales repurchased and net debt repaid yield.

The Value Composite One (VC1) is a method that investors use to understand a firm’s value.  The VC1 of H.B. Fuller Company (NYSE:FUL) is 33.  A firm with a value of 0 is thought to be an undervalued firm, while a firm with a value of 100 is considered an overvalued firm.  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 H.B. Fuller Company (NYSE:FUL) is 31.

Key Ratios

H.B. Fuller Company (NYSE:FUL) currently has a current ratio of 2.25. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply determined by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain firm to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the firm may be more capable of paying back its obligations.

H.B. Fuller Company (NYSE:FUL)’s Leverage Ratio was recently noted as 0.73. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a firm is relative to the amount of debt on the balance sheet. This ratio is frequently viewed as one quantify of the financial health of a company.

The Price to book ratio is the current equity price of a firm divided by the book value per share.  The Price to Book ratio for H.B. Fuller Company NYSE:FUL is 1.93.  A lower price to book ratio implies that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a firm’s value.  The Price to Cash Flow for H.B. Fuller Company (NYSE:FUL) is 12.33.  This ratio is determined by dividing the market value of a firm by cash from operating activities.  Additionally, the price to earnings ratio is another sought-after way for analysts and investors to understand a firm’s profitability.  The price to earnings ratio for H.B. Fuller Company (NYSE:FUL) is 17.82. This ratio is found by taking the current equity price and dividing by EPS.

Investors frequently should look into make decisions on what to do with stocks that have unperformed. Maybe things didn’t pan out the right way, even after combing through the numbers. Sometimes it may be uncomfortable to let go of a stock that isn’t up to par. Knowing when to cut a loser from the portfolio can be a helpful skill for the individual investor. On the flip side, investors may should look into decide whether to sell a winner. There may be occasions when a stock goes through the roof without any notice. The tricky part may be figuring out whether to cash in, or keep riding the wave. Heading into the next few quarters, investors will be trying to make sure they have all the bases covered. 

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