What Are The Quant Signals Telling Us About Morgan Sindall Group plc (LSE:MGNS)

Here we will take a look at several key ratios for Morgan Sindall Group plc (LSE:MGNS), starting with the Book to Market (BTM) ratio. Value investors seek stocks with high BTMs for their portfolios.  The ratio is a comparison of the firm’s net asset value per share to it’s current price.  This is helpful in determining how the market values the company compared to it’s actual worth.  The Book to Market value of Morgan Sindall Group plc currently stands at 0.475677. 

In terms of EBITDA Yield, Morgan Sindall Group plc (LSE:MGNS) currently has a value of 0.089464. This value is derived by dividing EBITDA by Enterprise Value.

Morgan Sindall Group plc (LSE:MGNS) presently has a current ratio of 1.00. The current ratio, also known as the working capital ratio, is a liquidity ratio that displays the proportion of current assets of a business relative to the current liabilities. The ratio is simply calculated by dividing current liabilities by current assets. The ratio may be used to provide an idea of the ability of a certain company to pay back its liabilities with assets. Typically, the higher the current ratio the better, as the company may be more capable of paying back its obligations.

The Price to book ratio is the current share price of a company divided by the book value per share.  The Price to Book ratio for Morgan Sindall Group plc LSE:MGNS is 2.102266.  A lower price to book ratio indicates that the stock might be undervalued.  Similarly, Price to cash flow ratio is another helpful ratio in determining a company’s value.  The Price to Cash Flow for Morgan Sindall Group plc (LSE:MGNS) is 5.977603.  This ratio is calculated by dividing the market value of a company by cash from operating activities.  Additionally, the price to earnings ratio is another popular way for analysts and investors to determine a company’s profitability.  The price to earnings ratio for Morgan Sindall Group plc (LSE:MGNS) is 14.026516. This ratio is found by taking the current share price and dividing by earnings per share.

Looking at some ROIC (Return on Invested Capital) numbers, Morgan Sindall Group plc (LSE:MGNS)’s ROIC is 0.458569. The ROIC 5 year average is 0.254424 and the ROIC Quality ratio is 2.571895. 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. 

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 Morgan Sindall Group plc (LSE:MGNS) is 6.341514.  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 Morgan Sindall Group plc (LSE:MGNS) is 4.810369.  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.

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 Morgan Sindall Group plc (LSE:MGNS) is 15.00000.  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.

At the time of writing, Morgan Sindall Group plc (LSE:MGNS) has a Piotroski F-Score of 8. 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 Morgan Sindall Group plc (LSE:MGNS) has a Q.i. Value of 10.00000. 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 Morgan Sindall Group plc (LSE:MGNS), we can see that the 12 month volatility is presently 26.418600. The 6 month volatility is 22.414200, and the 3 month is spotted at 21.786500. 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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