Stocks in Focus: Magic Formula Update on Dalata Hotel Group plc (ISE:DHG), Envestnet, Inc. (NYSE:ENV)

Dalata Hotel Group plc (ISE:DHG) has a current MF Rank of 6300. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to detect 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 alterations have 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 have 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 broker projections heading into earnings. Analysts will frequently 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 Dalata Hotel Group plc (ISE:DHG) is -22.05.  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 gizmo 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 Dalata Hotel Group plc (ISE:DHG) is -14.48.  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 Dalata Hotel Group plc (ISE:DHG) is 0.08.  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 gizmo in evaluating the quality of a enterprise’s ROIC over the timeframe of five years.  The ROIC Quality of Dalata Hotel Group plc (ISE:DHG) is 1.04.  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 Dalata Hotel Group plc (ISE:DHG) is 0.08.

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 Dalata Hotel Group plc (ISE:DHG) 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 jolt the shareholder value, too.  Another way to figure out the effectiveness of a enterprise’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Dalata Hotel Group plc ISE:DHG is -0.02.  This number is determined by gazing at the calculate 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 enterprise’s value.  The VC1 of Dalata Hotel Group plc (ISE:DHG) is 25.  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 Dalata Hotel Group plc (ISE:DHG) is 24.

Investors may be interested in gazing the Gross Margin score on shares of Dalata Hotel Group plc (ISE:DHG). The name right now has a score of 57. 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 gizmo that analysts use to detect undervalued companies. The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC. The ERP5 of Dalata Hotel Group plc (ISE:DHG) is 5368. The lower the ERP5 rank, the more undervalued a enterprise is thought to be.

C-Score – Montier

Dalata Hotel Group plc (ISE:DHG) right now has a Montier C-score of 2. 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 nonstandard current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

F Score

At the time of writing, Dalata Hotel Group plc (ISE:DHG) has a Piotroski F-Score of 7. The F-Score may aid detect companies with strengthening balance sheets. The score may also be used to detect 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 nonstandard 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 intelligent 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 broker opinions and tracking institutional transactions.

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The MF Rank developed by hedge fund manager Joel Greenblatt, is intended detect 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. Envestnet, Inc. (NYSE:ENV) has a current MF Rank of 7488.

Investors may be gazing 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 needed 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 Envestnet, Inc. (NYSE:ENV) is 1.43.  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 gizmo 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 Envestnet, Inc. (NYSE:ENV) is 1.63.  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 gazing the Gross Margin score on shares of Envestnet, Inc. (NYSE:ENV). The name right now has a score of 35. 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 Envestnet, Inc. (NYSE:ENV) is 0.27.  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 gizmo in evaluating the quality of a enterprise’s ROIC over the timeframe of five years.  The ROIC Quality of Envestnet, Inc. (NYSE:ENV) is 3.15.  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 Envestnet, Inc. (NYSE:ENV) is 0.18.

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 Envestnet, Inc. (NYSE:ENV) is -0.03.  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 jolt the shareholder value, too.  Another way to figure out the effectiveness of a enterprise’s distributions is by gazing at the Shareholder yield (Mebane Faber).  The Shareholder Yield (Mebane Faber) of Envestnet, Inc. NYSE:ENV is -0.11.  This number is determined by gazing at the calculate 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 enterprise’s value.  The VC1 of Envestnet, Inc. (NYSE:ENV) is 66.  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 Envestnet, Inc. (NYSE:ENV) is 69.

Key Ratios

Envestnet, Inc. (NYSE:ENV) right now has a current ratio of 0.72. 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 enterprise to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the enterprise may be more capable of paying back its obligations.

Envestnet, Inc. (NYSE:ENV)’s Leverage Ratio was recently noted as 0.45. This ratio is determined by dividing total debt by total assets plus total assets previous year, divided by two. The leverage of a enterprise is relative to the amount of debt on the balance sheet. This ratio is frequently viewed as one sum of the financial health of a outfit.

The Price to book ratio is the current stock price of a enterprise divided by the book value per share.  The Price to Book ratio for Envestnet, Inc. NYSE:ENV is 4.76.  A lower price to book ratio shows that the stock might be undervalued.  Similarly, Price to cash flow ratio is another useful ratio in determining a enterprise’s value.  The Price to Cash Flow for Envestnet, Inc. (NYSE:ENV) is 20.19.  This ratio is determined by dividing the market value of a enterprise by cash from operating activities.  Additionally, the price to earnings ratio is another sought-after way for analysts and investors to figure out a enterprise’s profitability.  The price to earnings ratio for Envestnet, Inc. (NYSE:ENV) is 105.11. This ratio is found by taking the current stock 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 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 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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