Pulling Back the Curtain on CorVel Corporation (NasdaqGS:CRVL)’s Quant Signals

Today we are spotlighting shares of CorVel Corporation (NasdaqGS:CRVL) and looking at how the firm stacks up in terms of valuation by the numbers.  One of the most important ratios to look at when weighing an investment decision is the Return on Equity of the company.  At the time of writing CorVel Corporation has an ROE of 0.218042. With ROE, Investors can see if they’re getting a good return on their money, while a company can evaluate how efficiently they’re utilizing shareholder’s equity. 

Drilling down into some additional metrics, we note that CorVel Corporation (NasdaqGS:CRVL) has a Price to Book ratio of 7.048670. 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 16.763717, and a current Price to Earnings ratio of 32.327052. The P/E ratio is one of the most common ratios used for figuring out whether a company is overvalued or undervalued.

After a recent scan, we can see that CorVel Corporation (NasdaqGS:CRVL) has a Shareholder Yield of 0.043012 and a Shareholder Yield (Mebane Faber) of 0.03334. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.

The Return on Invested Capital (aka ROIC) for CorVel Corporation (NasdaqGS:CRVL) is 0.444448.  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 CorVel Corporation (NasdaqGS:CRVL) is 16.278418.  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 CorVel Corporation (NasdaqGS:CRVL) is 0.543622.

The Earnings to Price yield of CorVel Corporation NasdaqGS:CRVL is 0.030934.  This is calculated by taking the earnings per share and dividing it by the last closing share price.  This is one of the most popular methods investors use to evaluate a company’s financial performance.  Earnings Yield is calculated by taking the operating income or earnings before interest and taxes (EBIT) and dividing it by the Enterprise Value of the company.  The Earnings Yield for CorVel Corporation NasdaqGS:CRVL is 0.048408.  Earnings Yield helps investors measure the return on investment for a given company.  Similarly, the Earnings Yield Five Year Average is the five year average operating income or EBIT divided by the current enterprise value.  The Earnings Yield Five Year average for CorVel Corporation (NasdaqGS:CRVL) is 0.045301.

CorVel Corporation (NasdaqGS:CRVL) currently has a Montier C-score of 3.00000. This indicator was developed by James Montier in an attempt to identify firms that were cooking the books in order to appear better on paper. The score ranges from zero to six where a 0 would indicate no evidence of book cooking, and a 6 would indicate a high likelihood. A C-score of -1 would indicate that there is not enough information available to calculate the score. Montier used six inputs in the calculation. These inputs included a growing difference between net income and cash flow from operations, increasing receivable days, growing day’s sales of inventory, increasing other current assets, decrease in depreciation relative to gross property plant and equipment, and high total asset growth.

At the time of writing, CorVel Corporation (NasdaqGS:CRVL) has a Piotroski F-Score of 5. 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.

Shifting gears, we can see that CorVel Corporation (NasdaqGS:CRVL) has a Q.i. Value of 34.00000. 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.

Volatility

Watching some historical volatility numbers on shares of CorVel Corporation (NasdaqGS:CRVL), we can see that the 12 month volatility is presently 21.834500. The 6 month volatility is 26.958400, and the 3 month is spotted at 31.690800. 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. 

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