Investors may want to shift their focus to some Return on Invested Capital (ROIC) data for Sears Holdings Corporation (NASDAQ:SHLD). ROIC is a metric that can be used to gauge the efficiency of a certain company at allocating controlled capital into investments that are profitable. ROIC has the ability to give a good sense of how a company is using its money to generate returns. ROIC may offer the clearest picture of just how efficient a company is at using its capital. Sears Holdings Corporation presently has an ROIC of -0.60871. The current ROIC 5 year average is -0.030837 and the ROIC Quality ratio is currently 1.12171.
Checking on another financial indicator, Sears Holdings Corporation (NASDAQ:SHLD) has an EV (Enterprise Value) of 5575042. EV represents the complete economic value of a given company. EV is considered to measure the theoretical takeover price if a company was to be acquired. EV takes into account more than just the outstanding equity. Debt and cash can have a big impact on a firm’s Enterprise Value. Although two companies may have a similar market cap, they may have widely different EV values.
Value Investors may be looking to track the Magic Formula Rank or MF Rank for Sears Holdings Corporation (NASDAQ:SHLD). After a recent check, Sears Holdings Corporation has a MF Rank of 15292. The Magic Formula was developed by Joel Greenblatt in his publication “The Little Book That Beats the Market”. Greenblatt’s formula helps spot stocks that are priced attractively with a high earnings yield, or solid reported profits compared to the market value of the company. To identify opportunities in the equity market, investors may be checking for stocks that have the lowest combined MF Rank.
Individual investors are often tracking multiple metrics in an attempt to maximize profits. Sears Holdings Corporation (NASDAQ:SHLD) currently has a Gross Margin (Marx) ratio of 0.462494. 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. Sears Holdings Corporation has a Gross Margin score of 3. 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.
Equity investors are always trying to find the next great stock pick. Uncovering the next winner to stuff the portfolio may entail very hard work and market dedication. Analyzing the vast sea of information about public companies can be a daunting task. Many sharp investors will approach the equity markets from multiple angles. This may include keeping close tabs on fundamental and technical data. Sears Holdings Corporation (NASDAQ:SHLD) has a present Value Composite Score of 77. This score lands 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.