Investors may be tracking shares of Clayton Williams Energy, Inc. (NYSE:CWEI). The company has a current EV (Enterprise Value) of 2759603. Enterprise Value measures the total value of a specific company. EV may often be used as a more comprehensive alternative to simply tracking the market cap of a firm. Enterprise Value is often used by value investors to help spot undervalued companies. EV is generally thought to be a more accurate calculation of total company value due to the inclusion of debt obligations.
Investors may also be narrowing in on the MF Rank (Magic Formula) on shares of Clayton Williams Energy, Inc. (NYSE:CWEI). Presently, Clayton Williams Energy, Inc. has an MF Rank of 12430. The Magic Formula was devised by hedge fund manager Joel Greenblatt. The formula was detailed in his book “The Little Book That Beats the Market”. The goal of the formula is to identify high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to help spot the undervalued quality stocks. The MF Rank combines the two ratios providing a ranking. Typically, companies with the lowest combined rank may be the higher quality selections.
Market investors may be zooming in on shares of Clayton Williams Energy, Inc. (NYSE:CWEI). The company presently has a Gross Margin (Marx) ratio of 0.050526. Robert Novy-Marx has provided investors with insights on finding high-quality value stocks. Marx pointed to a high gross income ratio defining the quality of a company. Clayton Williams Energy, Inc. has a Gross Margin score of 47. The Gross Margin score lands between 1 and 100 where a score of 1 would be seen as good, and a score of 100 would be considered bad. This score is based on the Gross Margin stability and growth over the previous 8 years.
Dedicated investors are constantly positioning themselves for the next great trading opportunity. Spotting value in the stock market may require a lot of hard work and dedication. Investors are constantly reviewing every bit of information available. This may include keeping close watch on fundamental and technical data. Clayton Williams Energy, Inc. (NYSE:CWEI) has a current Value Composite Score of 90. 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.
Following the ROIC (Return on Invested Capital) numbers, Clayton Williams Energy, Inc. (NYSE:CWEI)’s ROIC is -0.129777. The ROIC 5 year average is 0.04106 and the ROIC Quality ratio is 3.749631. 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.