July 8, 2019 at 8:51 am

Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH)’s ROIC Quality Hits 8.201061


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 Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) is 2.264387.  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 Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) is 3.736553.  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.

Shifting gears, we can see that Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) has a Q.i. Value of 21.00000. 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.

Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) has a current MF Rank of 4622. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks. Sportsman’s Warehouse Holdings, Inc. has a current ERP5 Rank of 4070. 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.

Valuation Scores

At the time of writing, Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) has a Piotroski F-Score of 4. 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.

Sportsman’s Warehouse Holdings, Inc. has an M-score Beneish of -1.670052. This M-score model was developed by Messod Beneish in order to detect manipulation of financial statements. The score uses a combination of eight different variables. The specifics of the variables and formula can be found in the Beneish paper “The Detection of Earnings Manipulation”.

Investors may be interested in viewing the Gross Margin score on shares of Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH). The name currently has a score of 22.00000. 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.

Watching some historical volatility numbers on shares of Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH), we can see that the 12 month volatility is presently 42.288100. The 6 month volatility is 41.672500, and the 3 month is spotted at 40.304800. 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.

We can now take a quick look at some historical stock price index data. Sportsman’s Warehouse Holdings, Inc. (NasdaqGS:SPWH) presently has a 10 month price index of 0.72870. 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 0.81044, the 24 month is 0.78908, and the 36 month is 0.47185. Narrowing in a bit closer, the 5 month price index is 0.79057, the 3 month is 0.82318, and the 1 month is currently 1.20057.