Saturday, November 22, 2008

The Ultimate MFI Stock!

I found yesterday the perfect MFI stock. Drumroll please....

MicroFinancial Incorporated. Why is this the perfect stock, you may ask? The ticker symbol is MFI! Sounds like a sign from the big guy himself, and I am not talking about Greenblatt. I looked at the ratios, and they technically don't qualify as the ROIC is too low per the formula. But that is all due to receivables, not exactly a capital-intensive part of the formula. Heck, they also pay a nice dividend.



mfi
+ Operating Income After Depreciation 10.99
- Minority Interest - Income Account -
= Income for Calculation 10.99

Market Cap Yahoo 34,770

Share Price 2.48
+ Market Cap Calc 34.77
+ Preferred Capital -
+ Debt in Current Liabilities -
+ Long-Term Debt 41.20

Cash and Short-Term Investments 19.91
- Excess Cash 19.91
= Enterprise Value 56.06






+ Property Plant and Equipment - Net 0.82
+ Receivables 89.80
+ Inventories -
+ Other Current Assests -
+ Working Cash -
- Accounts Payable 1.40
- Current Liabilities - Other -
= Invested Capital 89.22

Earnings Yield 20%

ROIC 12%

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