Agilent Technologies, Inc. (NYSE:A) Efficiency in Focus: A Look at the Numbers

Looking at some ROIC (Return on Invested Capital) numbers, Agilent Technologies, Inc. (NYSE:A)’s ROIC Quality Score is 3.328736. ROIC is a profitability ratio that measures the return that an investment generates for those providing capital. ROIC helps show how efficient a firm is at turning capital into profits.  This formula is calculated by 5 year average Return on Invested Capital (ROIC) / Standard Deviation of the 5 year ROIC.  The higher the ratio, the better as a higher score indicates a more stable return on invested capital.

Investors will be closely tracking stock market movements over the next few months. As we break into the second part of the year, many will be researching what they did right and what they did wrong in the first half. Recent market action may have investors questioning if a major pullback is on the horizon, or if momentum will turn back to the upside. Investors will have to determine if any tweaks will need to be made to the portfolio. If the economic data continues to display optimism, investors may be able to confidently make some moves to help bolster returns. Over the next few quarters, investors will be hoping that modest gains can turn into major gains.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks. The Price Range of Agilent Technologies, Inc. (NYSE:A) over the past 52 weeks is 1.000000. The 52-week range can be found in the stock’s quote summary.

FCF
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Agilent Technologies, Inc. (NYSE:A) is -0.390332.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Agilent Technologies, Inc. (NYSE:A) is 0.334470.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

GM 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 Agilent Technologies, Inc. (NYSE:A) is 33.00000.  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.

FCF
Free Cash Flow Growth (FCF Growth) is the free cash flow of the current year minus the free cash flow from the previous year, divided by last year’s free cash flow.  The FCF Growth of Agilent Technologies, Inc. (NYSE:A) is -0.390332.  Free cash flow (FCF) is the cash produced by the company minus capital expenditure.  This cash is what a company uses to meet its financial obligations, such as making payments on debt or to pay out dividends.  The Free Cash Flow Score (FCF Score) is a helpful tool in calculating the free cash flow growth with free cash flow stability – this gives investors the overall quality of the free cash flow.  The FCF Score of Agilent Technologies, Inc. (NYSE:A) is 0.334470.  Experts say the higher the value, the better, as it means that the free cash flow is high, or the variability of free cash flow is low or both.

Rank

The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Agilent Technologies, Inc. (NYSE:A) is 6016.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Value
The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Agilent Technologies, Inc. (NYSE:A) is 64.  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 Agilent Technologies, Inc. (NYSE:A) is 55.

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.  

By Journal Contributor