Taking a Second Look at Empire State Realty OP, L.P. (ARCA:ESBA) Shares

Empire State Realty OP, L.P. (ARCA:ESBA)’s Magic Formula Rank stands at 9401.  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.
When conducting stock analysis, investors have a wide array of various classifications to choose from. Growth stocks generally have the potential to produce above average profit growth and revenues. These types of stocks tend to expand quicker than the economy as a whole. Investors also have the option of adding cyclical stocks to the portfolio. Cyclicals are generally companies whose earnings and sales are highly correlated with that of the overall economy. When the economy is doing well, cyclical stocks may be more in favor. Investors may decide to go in another direction when the economy is dragging. When an economic downturn is underway, investors may choose to select defensive stocks. These types of stocks generally stand up well during down periods based on their insulation from the business cycle. Investors also have the option of purchasing foreign stocks to help add some diversity to the portfolio.

The Value Composite One (VC1) is a method that investors use to determine a company’s value.  The VC1 of Empire State Realty OP, L.P. (ARCA:ESBA) is 59.  A company with a value of 0 is thought to be an undervalued company, while a company with a value of 100 is considered an overvalued company.  The VC1 is calculated using the price to book value, price to sales, EBITDA to EV, price to cash flow, and price to earnings.  Similarly, the Value Composite Two (VC2) is calculated with the same ratios, but adds the Shareholder Yield.  The Value Composite Two of Empire State Realty OP, L.P. (ARCA:ESBA) is 52.

Shifting gears, we can see that Empire State Realty OP, L.P. (ARCA:ESBA) has a Q.i. Value of 31.00000. 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 Empire State Realty OP, L.P. (ARCA:ESBA), we can see that the 12 month volatility is presently 22.363100. The 6 month volatility is 20.788800, and the 3 month is spotted at 23.331300. 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. 

Investors may be interested in viewing the Gross Margin score on shares of Empire State Realty OP, L.P. (ARCA:ESBA). The name currently has a score of 44.00000. 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.

At the time of writing, Empire State Realty OP, L.P. (ARCA:ESBA) 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.

Volatility

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 Empire State Realty OP, L.P. (ARCA:ESBA) is 22.363100.  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 Empire State Realty OP, L.P. (ARCA:ESBA) is 23.331300.  The Volatility 6m is the same, except measured over the course of six months.  The Volatility 6m is 20.788800.

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

The Return on Invested Capital (aka ROIC) for Empire State Realty OP, L.P. (ARCA:ESBA) is 0.062660. 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 Empire State Realty OP, L.P. (ARCA:ESBA) is . 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 Empire State Realty OP, L.P. (ARCA:ESBA) is .

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 Empire State Realty OP, L.P. (ARCA:ESBA) is 0.028585.  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.

Once the investor has calculated risk and decided on a suitable time horizon, they may be wondering how to best start doing research on particular stocks and the market in general. Working from the top and filtering down, investors may start by studying the overall economy, specific industries, and other markets. Economic trends can have an influence on company earnings, and it is generally beneficial to be aware of what is going on locally and around the globe. Individual investors may decide that they want to start from the bottom and work their way up. This may involve studying specific stocks and looking for ones that are strong, cheap, and solidly performing on the earnings front. Some individuals will combine both methods with the goal of understanding all aspects that could possibly affect the stock market.