Quant Signal Rundown for Ensco plc (NYSE:ESV) Shares

In order to determine if a company is fairly valued, we can look at a number of different ratios and metrics. First off we’ll take a look at the Price to Cash Flow ratio of Ensco plc (NYSE:ESV). The firm currently has a P/CF ratio of 9.181180.

This is the current Price divided by Cash Flow Per Share for the trailing twelve months. Cash Flow is defined as Income After Taxes minus Preferred Dividends and General Partner Distributions plus Depreciation, Depletion and Amortization.

Investors seeking value in the stock market may be eyeing the Magic Formula Rank or MF Rank for Ensco plc (NYSE:ESV). Presently, the company has a MF Rank of 11420. The Magic Formula was devised and made popular by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps find stocks that are priced attractively with a high earnings yield, or strong reported profits in comparison to the market value of the company. To spot opportunities in the market, investors may be searching for stocks that have the lowest combined MF Rank.

Currently, Ensco plc (NYSE:ESV)’s ROIC is0.003696. The ROIC 5 year average is 0.103747 and the ROIC Quality ratio is 3.248726. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a company is at turning capital into profits. ROIC may be a good measure to view when examining whether or not a company is able to invest wisely. ROIC may also be an important metric for the value investor who is trying to determine the company’s moat. Ensco plc (NYSE:ESV) has a current Value Composite Score of 48. Using a scale from 0 to 100, a lower score would represent an undervalued company and a higher score would indicate an expensive or overvalued company. This ranking was developed by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.

Market watchers may also be following some quality ratios for Ensco plc (NYSE:ESV). Currently, the company has a Gross Margin (Marx) ratio of 0.35. This calculation is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, Ensco plc has a Gross Margin score of 41.00000. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative.

The Price Index is a ratio that indicates the return of a share price over a past period. The price index of Ensco plc (NYSE:ESV) for last month was 1.17279. 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 Ensco plc (NYSE:ESV) is 0.65983.

The C-Score is a system developed by James Montier that helps determine whether a company is involved in falsifying their financial statements. The C-Score is calculated by a variety of items, including a growing difference in net income verse cash flow, increasing days outstanding, growing days sales of inventory, increasing assets to sales, declines in depreciation, and high total asset growth. The C-Score of Ensco plc (NYSE:ESV) is 3.00000. The score ranges on a scale of -1 to 6. If the score is -1, then there is not enough information to determine the C-Score. If the number is at zero (0) then there is no evidence of fraudulent book cooking, whereas a number of 6 indicates a high likelihood of fraudulent activity. The C-Score assists investors in assessing the likelihood of a company cheating in the books.