Let’s take a look at some current ROIC (Return on Invested Capital) information for GI Dynamics, Inc. (ASX:GID). ROIC is a widely used financial metric that gauges how efficient a company is with earning cash flow through invested capital. A typical ROIC calculation divides operating income, adjusted for its tax rate, by total debt plus shareholder equity minus cash. The aim of the ROIC calculation is to show how much new cash is generated from capital investments. After a recent check, GI Dynamics, Inc.’s ROIC is -6.830236. The ROIC 5 year average is -4.056672 and the ROIC Quality ratio is at -2.455348.
Investors may also be tracking some quality ratios for GI Dynamics, Inc. (ASX:GID). Presently, the company has a Gross Margin (Marx) ratio of -0.188635. This number 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, GI Dynamics, Inc. has a Gross Margin score of 1. 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.
Value Investors may be keeping an eye on the Magic Formula Rank or MF Rank for GI Dynamics, Inc. (ASX:GID). Currently, GI Dynamics, Inc. has a MF Rank of 17639. The Magic Formula was created and popularized by Joel Greenblatt in his book “The Little Book That Beats the Market”. Greenblatt’s formula helps identify stocks that are priced attractively with a high earnings yield, or solid reported profits compared to the market value of the company. To spot opportunities in the equity market, investors may be checking for stocks that have the lowest combined MF Rank.
Investors are constantly trying to spot the next great stock to own. Choosing the next winner to pad the portfolio may involve very hard work and a touch of market magic. Analyzing the sea of information about public companies can be a scary task. Many sharp investors will approach the equity markets from many different angles. This may include keeping close tabs on fundamental and technical data. GI Dynamics, Inc. (ASX:GID) has a present Value Composite score of 90. This score falls on a scale from 0 to 100 where a lower score would indicate an undervalued company and a higher score would indicate an overvalued company. This ranking was created 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.
Investors may be looking to track many different company financial indicators to perform stock evaluation. GI Dynamics, Inc. (ASX:GID) currently has an EV or Enterprise Value of 2202. The EV is used to show how the market assigns value to a company as a whole. EV is essentially a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Monitoring EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.