Quant Ratios & Signals in Focus For Beacon Roofing Supply, Inc. (NasdaqGS:BECN) as QIV Moves to 35

Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has a Q.i. Value of 35. 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.

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Checking in on some valuation rankings, Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has a Value Composite score of 27. 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 35.

Watching some historical volatility numbers on shares of Beacon Roofing Supply, Inc. (NasdaqGS:BECN), we can see that the 12 month volatility is presently 46.0003. The 6 month volatility is 45.2459, and the 3 month is spotted at 56.6838. 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.

Beacon Roofing Supply, Inc. (NasdaqGS:BECN) has a current ERP5 Rank of 4574. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.

Investors will be closely watching which way market momentum will shift as we cruise into the back half of the year. Earnest investors will most likely be pouring over the latest earnings reports trying to spot buying opportunities. Many investors will pay especially close attention to companies that have posted large surprise factors over the past quarter. As the dust settles, investors might be monitoring stock price activity following the earning release in order to set up a plan for trading around the next earnings season.    

We can now take a quick look at some historical stock price index data. Beacon Roofing Supply, Inc. (NasdaqGS:BECN) presently has a 10 month price index of 1.24528. 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 0.88858, the 24 month is 0.7211, and the 36 month is 0.85592. Narrowing in a bit closer, the 5 month price index is 0.93646, the 3 month is 1.04206, and the 1 month is currently 1.1415.

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There are many different tools to determine whether a company is profitable or not. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for Beacon Roofing Supply, Inc. (NasdaqGS:BECN) is -0.003251. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.

Return on Invested Capital (ROIC), ROIC Quality, ROIC 5 Year Average

The Return on Invested Capital (aka ROIC) for Beacon Roofing Supply, Inc. (NasdaqGS:BECN) is 0.139362. 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 Beacon Roofing Supply, Inc. (NasdaqGS:BECN) is 11.655274. 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 Beacon Roofing Supply, Inc. (NasdaqGS:BECN) is 0.275744.

FCF Yield 5yr Avg

The FCF Yield 5yr Average is calculated by taking the five year average free cash flow of a company, and dividing it by the current enterprise value. Enterprise Value is calculated by taking the market capitalization plus debt, minority interest and preferred shares, minus total cash and cash equivalents. The average FCF of a company is determined by looking at the cash generated by operations of the company. The Free Cash Flow Yield 5 Year Average of Beacon Roofing Supply, Inc. (NasdaqGS:BECN) is 0.018528.

Gross Margin score

Investors may be interested in viewing the Gross Margin score on shares of Beacon Roofing Supply, Inc. (NasdaqGS:BECN). The name currently has a score of 32. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.

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