Checking in on shares of Dawson Geophysical Company (NASDAQ:DWSN), the stock currently has a Value Composite Score of 61. Using a scale from 0 to 100, a score near zero would indicate an undervalued company and a higher score would signal an expensive or overvalued company. This ranking was created by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.
Equity investors are typically tracking multiple financial indicators to help identify market opportunities. Dawson Geophysical Company (NASDAQ:DWSN) has a current EV or Enterprise Value of 65562. The EV displays how the market assigns value to a firm as a whole. EV is generally a modification of market cap, as it incorporates debt and cash for assessing a firm’s valuation. Tracking EV may help when comparing companies with different capital structures. EV can help investors gain a truer sense of whether a company is undervalued or not.
Dawson Geophysical Company (NASDAQ:DWSN) has a current Gross Margin (Marx) ratio of 0.039353. This number is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Looking further, Dawson Geophysical Company has a Gross Margin score of 50. This score is based on the Gross Margin (Marx) metric using a scale from 1 to 100 where a 1 would be seen as positive, and a 100 would be viewed as negative.
Investors might be taking note of Return on Invested Capital (ROIC) data for Dawson Geophysical Company (NASDAQ:DWSN). ROIC is a financial metric that measures how efficient a company is with earning cash flow through invested capital. A typical ROIC formula divides operating income, adjusted for its tax rate, by total debt plus shareholder equity minus cash. The goal of the ROIC calculation is to display how much new cash is generated from capital investments. Presently, Dawson Geophysical Company’s ROIC is -0.412174. The ROIC 5 year average is -0.025645 and the ROIC Quality ratio is at 1.671747.
Dawson Geophysical Company (NASDAQ:DWSN) has an MF Rank (Magic Formula) of 15591. Hedge fund manager Joel Greenblatt developed the Magic Formula which was introduced in his book “The Little Book That Beats the Market”. Greenblatt was focused on a method for identifying bargains when purchasing company stock. This included spotting companies that earn more relative to the stock price, or companies with a high earnings yield. The Magic Formula may help identify strong, healthy companies. The MF is calculated using earnings yield and ROIC ratios. In general, investors may be looking for stocks with the lowest combined MF Rank.