MF Rank in Focus For These Stocks: Castings P.L.C. (LSE:CGS), USA Technologies, Inc. (NasdaqGM:USAT)

Castings P.L.C. (LSE:CGS) has a current MF Rank of 5868. 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 studying to see what alterations 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 sometimes update their numbers as the earnings date ways.

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 Castings P.L.C. (LSE:CGS) is -0.86.  Free cash flow (FCF) is the cash produced by the outfit minus capital expenditure.  This cash is what a outfit 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 Castings P.L.C. (LSE:CGS) is -0.09.  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 Castings P.L.C. (LSE:CGS) is 0.10.  The Return on Invested Capital is a ratio that determines whether a outfit is profitable or not.  It tells investors how well a outfit 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 outfit’s ROIC over the stage of five years.  The ROIC Quality of Castings P.L.C. (LSE:CGS) 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 Castings P.L.C. (LSE:CGS) is 0.18.

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a outfit through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of Castings P.L.C. (LSE:CGS) is 0.04.  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 figure out the effectiveness of a outfit’s distributions is by studying at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Castings P.L.C. LSE:CGS is 0.04.  This number is determined by studying at the quantify 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 figure out a outfit’s value.  The VC1 of Castings P.L.C. (LSE:CGS) is 29.  A outfit with a value of 0 is thought to be an undervalued outfit, while a outfit with a value of 100 is considered an overvalued outfit.  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 Castings P.L.C. (LSE:CGS) is 24.

Investors may be interested in looking the Gross Margin score on shares of Castings P.L.C. (LSE:CGS). The name presently has a score of 21. 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 Castings P.L.C. (LSE:CGS) is 4423. The lower the ERP5 rank, the more undervalued a outfit is thought to be.

C-Score – Montier

Castings P.L.C. (LSE:CGS) presently 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 measure 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, Castings P.L.C. (LSE:CGS) has a Piotroski F-Score of 5. The F-Score may aid unveil 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 other variables based on the outfit 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 bring to light 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 smooth 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.

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. USA Technologies, Inc. (NasdaqGM:USAT) has a current MF Rank of 10728.

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Investors may be studying for solid stocks to add to the portfolio. Sometimes, investors may opt for 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 vital 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 USA Technologies, Inc. (NasdaqGM:USAT) is -0.82.  Free cash flow (FCF) is the cash produced by the outfit minus capital expenditure.  This cash is what a outfit 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 USA Technologies, Inc. (NasdaqGM:USAT) is 2.17.  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 looking the Gross Margin score on shares of USA Technologies, Inc. (NasdaqGM:USAT). The name presently has a score of 39. 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 USA Technologies, Inc. (NasdaqGM:USAT) is 0.04.  The Return on Invested Capital is a ratio that determines whether a outfit is profitable or not.  It tells investors how well a outfit 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 outfit’s ROIC over the stage of five years.  The ROIC Quality of USA Technologies, Inc. (NasdaqGM:USAT) is 1.21.  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 USA Technologies, Inc. (NasdaqGM:USAT) is 0.01.

Shareholder Yield

The Shareholder Yield is a way that investors can see how much money shareholders are receiving from a outfit through a combination of dividends, share repurchases and debt reduction.  The Shareholder Yield of USA Technologies, Inc. (NasdaqGM:USAT) is -0.33.  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 figure out the effectiveness of a outfit’s distributions is by studying at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of USA Technologies, Inc. NasdaqGM:USAT is -0.23.  This number is determined by studying at the quantify 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 figure out a outfit’s value.  The VC1 of USA Technologies, Inc. (NasdaqGM:USAT) is 64.  A outfit with a value of 0 is thought to be an undervalued outfit, while a outfit with a value of 100 is considered an overvalued outfit.  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 USA Technologies, Inc. (NasdaqGM:USAT) is 72.

Key Ratios

USA Technologies, Inc. (NasdaqGM:USAT) at present has a current ratio of 1.34. 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 outfit to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the outfit may be more capable of paying back its obligations.

USA Technologies, Inc. (NasdaqGM:USAT)’s Leverage Ratio was recently noted as 0.27. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a outfit is relative to the amount of debt on the balance sheet. This ratio is sometimes viewed as one sum of the financial health of a enterprise.

The Price to book ratio is the current equity price of a outfit divided by the book value per share.  The Price to Book ratio for USA Technologies, Inc. NasdaqGM:USAT is 2.34.  A lower price to book ratio signals that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a outfit’s value.  The Price to Cash Flow for USA Technologies, Inc. (NasdaqGM:USAT) is 42.49.  This ratio is determined by dividing the market value of a outfit by cash from operating activities.  Additionally, the price to earnings ratio is another leading way for analysts and investors to figure out a outfit’s profitability.  The price to earnings ratio for USA Technologies, Inc. (NasdaqGM:USAT) is -22.01. This ratio is found by taking the current equity price and dividing by EPS.

Investors sometimes are required to 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 challenging 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 are required to 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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