Does Ingenico Group – GCS (ENXTPA:ING)’s Valuation Match Investor Expectations?

Ingenico Group – GCS (ENXTPA:ING) has a current MF Rank of 2441. 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.

Investors may be interested in viewing the Gross Margin score on shares of Ingenico Group – GCS (ENXTPA:ING). The name currently has a score of 25.00000. 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.

There are many different tools to determine whether a company is profitable or not. 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 Ingenico Group – GCS (ENXTPA:ING) is 0.061902. 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 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 Ingenico Group – GCS (ENXTPA:ING) is 4. 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.

Further, we can see that Ingenico Group – GCS (ENXTPA:ING) has a Shareholder Yield of 0.005723 and a Shareholder Yield (Mebane Faber) of -0.20442. 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.

Checking in on some valuation rankings, Ingenico Group – GCS (ENXTPA:ING) has a Value Composite score of 38. 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 36.

Volatility/PI
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 Ingenico Group – GCS (ENXTPA:ING) is 30.472000. 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 Ingenico Group – GCS (ENXTPA:ING) is 47.000900. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 36.763100.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Ingenico Group – GCS (ENXTPA:ING) for last month was 1.08157. 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 Ingenico Group – GCS (ENXTPA:ING) is 0.91375.

The Price to book ratio is the current share price of a company divided by the book value per share. The Price to Book ratio for Ingenico Group – GCS ENXTPA:ING is 2.458134. A lower price to book ratio indicates that the stock might be undervalued. Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value. The Price to Cash Flow for Ingenico Group – GCS (ENXTPA:ING) is 13.302844. This ratio is calculated by dividing the market value of a company by cash from operating activities. Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability. The price to earnings ratio for Ingenico Group – GCS (ENXTPA:ING) is 17.667840. This ratio is found by taking the current share price and dividing by earnings per share.

Looking at some ROIC (Return on Invested Capital) numbers, Ingenico Group – GCS (ENXTPA:ING)’s ROIC is 1.212418. The ROIC 5 year average is 0.433033 and the ROIC Quality ratio is 10.624070. 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.

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 Ingenico Group – GCS (ENXTPA:ING) is -0.104508. Free cash flow (FCF) is the cash produced by the company minus capital expenditure. This cash is what a company 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 helpful tool 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 Ingenico Group – GCS (ENXTPA:ING) is 0.604198. 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.