Invesco Ltd. (NYSE:IVZ) and Teleflex Incorporated (NYSE:TFX) Quant Signals Showing FCF Score at Notable Levels

Invesco Ltd. (NYSE:IVZ) has a Value Composite score of 11. Developed by James O’Shaughnessy, the VC score uses six valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, price to sales and shareholder yield.  The VC score 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. Removing the sixth ratio (shareholder yield) we can view the Value Composite 1 score which is currently sitting at 17. 

There are many different tools to determine whether a company is profitable or not. One popular ratio is the “Return on Assets” (aka ROA). This score shows how profitable a company is relative to its total assets. The Return on Assets for Invesco Ltd. (NYSE:IVZ) is 0.027876. 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.

Looking at some ROIC (Return on Invested Capital) numbers, Invesco Ltd. (NYSE:IVZ)’s ROIC is 0.074466. The ROIC 5 year average is 0.127272 and the ROIC Quality ratio is 7.502056. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.

The Current Ratio of Invesco Ltd. (NYSE:IVZ) is 8.22. The Current Ratio is used by investors to determine whether a company can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities. A high current ratio indicates that the company might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.

The Leverage Ratio of Invesco Ltd. (NYSE:IVZ) is 0.243740. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

Piotroski F Score

The Piotroski F-Score is a scoring system between 1-9 that determines a firm’s financial strength. The score helps determine if a company’s stock is valuable or not. The Piotroski F-Score of Invesco Ltd. (NYSE:IVZ) is 2. A score of nine indicates a high value stock, while a score of one indicates a low value stock. The score is calculated by the return on assets (ROA), Cash flow return on assets (CFROA), change in return of assets, and quality of earnings. It is also calculated by a change in gearing or leverage, liquidity, and change in shares in issue. The score is also determined by change in gross margin and change in asset turnover.

Volatility/C Score

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 Invesco Ltd. (NYSE:IVZ) is 31.542800. 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 Invesco Ltd. (NYSE:IVZ) is 26.360700. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 30.108000.

Invesco Ltd. (NYSE:IVZ) currently has a Montier C-score of 0.00000. 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 calculate 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 other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

In terms of EBITDA Yield, Invesco Ltd. (NYSE:IVZ) currently has a value of 0.104528. This value is derived by dividing EBITDA by Enterprise Value.

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 Teleflex Incorporated (NYSE:TFX) stands at 0.030045.  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 Teleflex Incorporated (NYSE:TFX) is 0.022026.  Further, the Earnings to Price yield of Teleflex Incorporated NYSE:TFX is 0.014600.  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.

After a recent scan, we can see that Teleflex Incorporated (NYSE:TFX) has a Shareholder Yield of -0.016161 and a Shareholder Yield (Mebane Faber) of -0.01041. 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.

The Return on Invested Capital (aka ROIC) for Teleflex Incorporated (NYSE:TFX) is 0.452141. 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 Teleflex Incorporated (NYSE:TFX) is 8.650293. 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 Teleflex Incorporated (NYSE:TFX) is 0.379334.

Ratios

The Current Ratio of Teleflex Incorporated (NYSE:TFX) is 2.12. The Current Ratio is used by investors to determine whether a company can pay short term and long term debts. The current ratio looks at all the liquid and non-liquid assets compared to the company’s total current liabilities. A high current ratio indicates that the company might have trouble managing their working capital. A low current ratio (when the current liabilities are higher than the current assets) indicates that the company may have trouble paying their short term obligations.
Gross Margin Score

The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Teleflex Incorporated (NYSE:TFX) is 16.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.
Leverage Ratio

The Leverage Ratio of Teleflex Incorporated (NYSE:TFX) is 0.346535. Leverage ratio is the total debt of a company divided by total assets of the current and past year divided by two. Companies take on debt to finance their day to day operations. The leverage ratio can measure how much of a company’s capital comes from debt. With this ratio, investors can better estimate how well a company will be able to pay their long and short term financial obligations.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Teleflex Incorporated (NYSE:TFX) for last month was 1.04656. 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 Teleflex Incorporated (NYSE:TFX) is 1.12894.