Does Pfizer Inc. (NYSE:PFE) or The Walt Disney Company (NYSE:DIS) Have Solid Quant Signals?

Investors having Pfizer Inc. (NYSE:PFE) on their watchlists might want to take a look into the Gross Margin Score of the company. Pfizer Inc. currently has a score of 2.00000. This score is obtained 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 viewed as positive, and a score of 100 would be seen as a negative result.  The score of 2.00000 for Pfizer Inc. indicates additional indicators should be examined to determine value.

In addition to gross margins, investors might also take into consideration some other ratios. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Pfizer Inc. (NYSE:PFE) is 0.064914. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The Return on Invested Capital (aka ROIC) for Pfizer Inc. (NYSE:PFE) is 0.403780. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of Pfizer Inc. (NYSE:PFE) is 24.304845. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of Pfizer Inc. (NYSE:PFE) is 0.297306.

After a recent scan, we can see that Pfizer Inc. (NYSE:PFE) has a Shareholder Yield of 0.065196 and a Shareholder Yield (Mebane Faber) of 0.10909. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

Quant Scores

Checking in on some valuation rankings, Pfizer Inc. (NYSE:PFE) has a Value Composite score of 50. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 39.

Pfizer Inc. (NYSE:PFE) has a current MF Rank of 3563. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot 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.

Pfizer Inc. (NYSE:PFE) has a current ERP5 Rank of 4781. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Price Index & Volatility

Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of Pfizer Inc. (NYSE:PFE) is 20.340400. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of Pfizer Inc. (NYSE:PFE) is 23.653800. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 23.011900.

We can now take a quick look at some historical stock price index data. Pfizer Inc. (NYSE:PFE) presently has a 10 month price index of 1.18324. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.16375, the 24 month is 1.26682, and the 36 month is 1.52640. Narrowing in a bit closer, the 5 month price index is 0.97147, the 3 month is 0.96381, and the 1 month is currently 0.97146.

Here will take a quick scan of Earnings Yield information on shares of The Walt Disney Company (NYSE:DIS). Currently, the Earnings to Price (Yield) is 0.064237, Earnings Yield is 0.073587, and Earnings Yield 5 year average is 0.063768. Earnings yield provides a way for investors to help measure returns. Investors may choose to compare the earnings yield of stocks to money market instruments, treasuries, or bonds. The firm will look to it’s next scheduled report date to try to improve on these numbers.

At the time of writing, The Walt Disney Company (NYSE:DIS) has a Piotroski F-Score of 6. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company 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 other end, a stock with a score from 0-2 would be viewed as weak.

Shifting gears, we can see that The Walt Disney Company (NYSE:DIS) has a Q.i. Value of 25.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.

Volatility

Watching some historical volatility numbers on shares of The Walt Disney Company (NYSE:DIS), we can see that the 12 month volatility is presently 18.729400. The 6 month volatility is 21.682200, and the 3 month is spotted at 20.834700. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.

Further, we can look at some other ratios and financial indicators in order to get an idea of the company’s valuation. The Walt Disney Company (NYSE:DIS) presently has a current ratio of 1.00. 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 calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of The Walt Disney Company (NYSE:DIS) is 0.037987.

One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for The Walt Disney Company (NYSE:DIS) is 0.112172. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

The M-Score, conceived by accounting professor Messod Beneish, is a model for detecting whether a company has manipulated their earnings numbers or not. The Walt Disney Company (NYSE:DIS) has an M-Score of -2.556114. The M-Score is based on 8 different variables: Days’ sales in receivables index, Gross Margin Index, Asset Quality Index, Sales Growth Index, Depreciation Index, Sales, General and Administrative expenses Index, Leverage Index and Total Accruals to Total Assets. A score higher than -1.78 is an indicator that the company might be manipulating their numbers.

The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of The Walt Disney Company (NYSE:DIS) is 43. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated 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 calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of The Walt Disney Company (NYSE:DIS) is 37.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price. The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital. The MF Rank of The Walt Disney Company (NYSE:DIS) is 2813. A company with a low rank is considered a good company to invest in. The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.

The Earnings to Price yield of The Walt Disney Company NYSE:DIS is 0.064237. This is calculated by taking the earnings per share and dividing it by the last closing share price. This is one of the most popular methods investors use to evaluate a company’s financial performance. Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company. The Earnings Yield for The Walt Disney Company NYSE:DIS is 0.073587. Earnings Yield helps investors measure the return on investment for a given company. Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value. The Earnings Yield Five Year average for The Walt Disney Company (NYSE:DIS) is 0.063768.

Price Index

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of The Walt Disney Company (NYSE:DIS) for last month was 1.01679. This is calculated by taking the current share price and dividing by the share price one month ago. If the ratio is greater than 1, then that means there has been an increase in price over the month. If the ratio is less than 1, then we can determine that there has been a decrease in price. Similarly, investors look up the share price over 12 month periods. The Price Index 12m for The Walt Disney Company (NYSE:DIS) is 1.12553.

Price Range 52 Weeks

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of The Walt Disney Company (NYSE:DIS) over the past 52 weeks is 0.963000. The 52-week range can be found in the stock’s quote summary.