Stock Survey: Tracking These Shares: Marsh & McLennan Companies, Inc. (NYSE:MMC), Roper Technologies, Inc. (NYSE:ROP)

Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The Volatility 12m of Marsh & McLennan Companies, Inc. (NYSE:MMC) is 18.429400.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Marsh & McLennan Companies, Inc. (NYSE:MMC) is 16.361600.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 20.308100.

Many individuals strive to expand their wealth by investing in the stock market. There are countless factors that come in to play when analyzing which stocks to invest in. Along with all the tangible information provided by publically traded companies, there are plenty of intangibles. It is fairly easy to comb through the balance sheet to find out detailed performance numbers, but it can be extremely difficult to measure other aspects such as competitive advantage, reputation, and leadership competency. Sometimes all the rational calculations will point to a buy, but there may be other influences that may not support the case and will need to be addressed. Investors who are willing to go the extra mile when conducting stock research may find that crucial decisions become a little bit less strenuous down the road.

We can now take a quick look at some historical stock price index data. Marsh & McLennan Companies, Inc. (NYSE:MMC) presently has a 10 month price index of 1.16007. 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 1.13812, the 24 month is 1.32151, and the 36 month is 1.57626. Narrowing in a bit closer, the 5 month price index is 1.10983, the 3 month is 1.13048, and the 1 month is currently 1.01642.

At the time of writing, Marsh & McLennan Companies, Inc. (NYSE:MMC) has a Piotroski F-Score of 6. 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.

Investors may be interested in viewing the Gross Margin score on shares of Marsh & McLennan Companies, Inc. (NYSE:MMC). The name currently has a score of 1.00000. 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. The Q.i. Value of Marsh & McLennan Companies, Inc. is 33.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Marsh & McLennan Companies, Inc. (NYSE:MMC) is 3187.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Marsh & McLennan Companies, Inc. (NYSE:MMC) is 5036.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Marsh & McLennan Companies, Inc. (NYSE:MMC) over the past 52 weeks is 0.977000.  The 52-week range can be found in the stock’s quote summary. 

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 Marsh & McLennan Companies, Inc. (NYSE:MMC) is 0.233685.  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 Marsh & McLennan Companies, Inc. is 0.835702.  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.

Investors are typically trying to find solid stocks to add to the portfolio. When it comes to stock picking, there is no magic formula. There are various techniques that may provide better outcomes than others, but it’s how these techniques are put together and applied that can make all the difference. One of the keys to successful investing is the proper use of information. Everyone can see the vast amount of data that is available on publically traded companies. Being able to interpret the data could end up being the most important factor when it comes to successfully selecting stocks to buy. Taking the time to investigate a particular stock that looks attractive can be a smart move. Investors may be better served to not just jump on the hot stock of the day, but employ analysis that may help uncover some buried information. Good stocks are indeed out there, it may just take some time to figure out which ones they are.

The 12 month volatility of Roper Technologies, Inc. (NYSE:ROP) is 18.967400.  This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized.  Stock volatility is a percentage that indicates whether a stock is a desirable purchase.  Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year.  The lower the number, a company is thought to have low volatility.  The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months.  The Volatility 3m of Roper Technologies, Inc. (NYSE:ROP) is 14.344100.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 25.492700.

Sharp investors typically realize that stock returns can fluctuate, and the periods of extreme ups and downs can sometimes be quite long. It can be very difficult to predict when a big market downturn will occur. However, investors who have a plan in place will often find themselves in a better position than those who do not. Investors following an individual plan can include some preparation for the unknown. The plan may involve specific criteria, and it may be uniquely tailored to suit the individual’s goals. When markets get choppy, it can be tempting for the individual investor to go into survival mode. Some of the best stock buying opportunities will present themselves during a lengthy period of decline. Being ready to pounce on these opportunities might end up being a huge benefit to the investor when the time comes.

At the time of writing, Roper Technologies, Inc. (NYSE:ROP) has a Piotroski F-Score of 7. 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.

Investors may be interested in viewing the Gross Margin score on shares of Roper Technologies, Inc. (NYSE:ROP). The name currently has a score of 23.00000. 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. The Q.i. Value of Roper Technologies, Inc. is 44.00000.  The Q.i. Value is a helpful tool in determining if a company is undervalued or not.  The Q.i. Value is calculated using the following ratios: EBITDA Yield, Earnings Yield, FCF Yield, and Liquidity.  The lower the Q.i. value, the more undervalued the company is thought to be.

The MF Rank (aka the Magic Formula) is a formula that pinpoints a valuable company trading at a good price.  The formula is calculated by looking at companies that have a high earnings yield as well as a high return on invested capital.  The MF Rank of Roper Technologies, Inc. (NYSE:ROP) is 4357.  A company with a low rank is considered a good company to invest in.  The Magic Formula was introduced in a book written by Joel Greenblatt, entitled, “The Little Book that Beats the Market”.  The ERP5 Rank is an investment tool that analysts use to discover undervalued companies.  The ERP5 looks at the Price to Book ratio, Earnings Yield, ROIC and 5 year average ROIC.  The ERP5 of Roper Technologies, Inc. (NYSE:ROP) is 4952.  The lower the ERP5 rank, the more undervalued a company is thought to be.

Some of the best financial predictions are formed by using a variety of financial tools. The Price Range 52 Weeks is one of the tools that investors use to determine the lowest and highest price at which a stock has traded in the previous 52 weeks.  The Price Range of Roper Technologies, Inc. (NYSE:ROP) over the past 52 weeks is 0.998000.  The 52-week range can be found in the stock’s quote summary. 

We can now take a quick look at some historical stock price index data. Roper Technologies, Inc. (NYSE:ROP) presently has a 10 month price index of 1.29092. 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 1.27247, the 24 month is 1.65683, and the 36 month is 1.97826. Narrowing in a bit closer, the 5 month price index is 1.23340, the 3 month is 1.27164, and the 1 month is currently 1.06140.

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 Roper Technologies, Inc. (NYSE:ROP) is 0.461776.  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 Roper Technologies, Inc. is 0.990724.  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.

Top notch investors are usually adept at filtering through the constant financial headlines. Now more than ever, there is an unprecedented amount of news and data regarding publically traded companies. Most of the focus is typically on the short-term and it tends to focus around near-term forecasts. Although more information is probably a good thing when looking at the bigger picture, being able to zoom in on the proper information can be quite a challenge. Tuning out all the unnecessary noise isn’t easy, but it may help the investor make better decisions. Constantly switching investments based on the headlines of the day may end up leaving the investor wondering what went wrong. Analyzing the right information can be an essential part of any solid stock investing plan.