Actuant Corporation (NYSE:ATU): A Look at the Company’s Profitability

The ROIC Quality of Actuant Corporation (NYSE:ATU) is 8.916945.  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 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.  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.  

Active investors are constantly weighing risk and return when trading in the stock market. Every investor has to evaluate their risk appetite at some point. The amount of risk an investor is willing to take on can have a large impact on expected future returns. Some people may be much more comfortable with riskier investments than others. This can greatly vary from one person to the next. Once the individual investor is comfortable with the amount of money on the table, they should be able to spend their energies focused on finding a winning strategy. Finding a winning strategy may involve many different aspects of stock research. Following a plan may help investors plow through downturns in the markets, and being able to change the plan when things aren’t working can also be a help to longer-term portfolio health.

We can now take a quick look at some historical stock price index data. Actuant Corporation (NYSE:ATU) presently has a 10 month price index of 1.06508. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.05356, the 24 month is 1.25599, and the 36 month is 0.75076. Narrowing in a bit closer, the 5 month price index is 0.94605, the 3 month is 0.90257, and the 1 month is currently 1.02505.

Ratios
Actuant Corporation (NYSE:ATU) has a Price to Book ratio of 2.564103. This ratio is calculated by dividing the current share price by the book value per share. Investors may use Price to Book to display how the market portrays the value of a stock. Checking in on some other ratios, the company has a Price to Cash Flow ratio of 15.571126, and a current Price to Earnings ratio of 29.338355. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

Checking in on some valuation rankings, Actuant Corporation (NYSE:ATU) has a Value Composite score of 44. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 52.

Watching some historical volatility numbers on shares of Actuant Corporation (NYSE:ATU), we can see that the 12 month volatility is presently 30.916900. The 6 month volatility is 30.751600, and the 3 month is spotted at 33.819000. 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. 

Score
The Gross Margin Score is calculated by looking at the Gross Margin and the overall stability of the company over the course of 8 years. The score is a number between one and one hundred (1 being best and 100 being the worst). The Gross Margin Score of Actuant Corporation (NYSE:ATU) is 11.00000. The more stable the company, the lower the score. If a company is less stable over the course of time, they will have a higher score.

By Journal Contributor