Fiserv, Inc. (NasdaqGS:FISV)’s Magic Formula Rank stands at 4058. 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.
Under recent market conditions, it may be quite difficult to be overly bearish. Most signs seem to be pointing in the right direction as investors keep concentrating on superior returns from the stock market. At this point in time, investors may have to make the tough decision whether to be fully invested in the stock market, or keep some cash handy on the sidelines. As we have seen, there will be a few days or weeks where market action may spur some second guessing, but the bulls seem they are still going to keep running. Many investors may be crafting plans for when the good times inevitably come to an end. Being prepared for market changes may help weather the storm when it comes.
The Value Composite One (VC1) is a method that investors use to determine a company’s value. The VC1 of Fiserv, Inc. (NasdaqGS:FISV) is 63. A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company. The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings. Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield. The Value Composite Two of Fiserv, Inc. (NasdaqGS:FISV) is 52.
Shifting gears, we can see that Fiserv, Inc. (NasdaqGS:FISV) has a Q.i. Value of 43.00000. The Q.i. Value ranks companies using four ratios. These ratios consist of EBITDA Yield, FCF Yield, Liquidity, and Earnings Yield. The purpose of the Q.i. Value is to help identify companies that are the most undervalued. Typically, the lower the value, the more undervalued the company tends to be.
Watching some historical volatility numbers on shares of Fiserv, Inc. (NasdaqGS:FISV), we can see that the 12 month volatility is presently 17.307400. The 6 month volatility is 19.762700, and the 3 month is spotted at 24.768500. Following volatility data can help measure how much the stock price has fluctuated over the specified time period. Although past volatility action may help project future stock volatility, it may also be vastly different when taking into account other factors that may be driving price action during the measured time period.
Investors may be interested in viewing the Gross Margin score on shares of Fiserv, Inc. (NasdaqGS:FISV). The name currently has a score of 11.00000. 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.
At the time of writing, Fiserv, Inc. (NasdaqGS:FISV) has a Piotroski F-Score of 7. The F-Score may help discover companies with strengthening balance sheets. The score may also be used to spot the weak performers. Joseph Piotroski developed the F-Score which employs nine different variables based on the company financial statement. A single point is assigned to each test that a stock passes. Typically, a stock scoring an 8 or 9 would be seen as strong. On the other end, a stock with a score from 0-2 would be viewed as weak.
Volatility
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 Fiserv, Inc. (NasdaqGS:FISV) is 17.307400. 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 Fiserv, Inc. (NasdaqGS:FISV) is 24.768500. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 19.762700.
Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average
The Return on Invested Capital (aka ROIC) for Fiserv, Inc. (NasdaqGS:FISV) is 1.292517. 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 Fiserv, Inc. (NasdaqGS:FISV) is 10.110111. 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 Fiserv, Inc. (NasdaqGS:FISV) is 1.733596.
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 Fiserv, Inc. (NasdaqGS:FISV) is 0.141877. 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.
Investors may be doing a portfolio evaluation as we head into the second half of the calendar year. Assessing results from the first half may help identify what went right, and what went wrong. Many investors may have missed the charge, and they keep hoping for stocks to retreat to go on a buying spree. Gaining a solid grasp on the markets may take years to truly figure out. Combining technical analysis and tracking fundamentals may provide a large boost of confidence to the investor. Being able to sift through the countless chatter may take some perseverance and extreme focus. Creating a winning portfolio might only be a few sharp trades away.