Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
47/100RyuScore 47 out of 100, Average
47
Average. Green Dot Corporation scores higher than 42% of the 2,291 companies Ryufin scores.
Carried by return on capital and cycle position, held back by valuation and return on new capital.
Financial Services median 63 · all companies 54
Valuation
26% of the score
6median 50
Green Dot Corporation is valued at 52.6x its operating profit, including debt: a very rich multiple.
60x
50x
35x
25x
18x
12x
8x
52.6x
Full points at 8x or less, none from 60xfull points
Return on capital
18% of the score
100median 23
Customers and suppliers fund the business: it runs on no capital of its own.
Return on new capital
16% of the score
0median 33
Over 6 years yearly profit fell by 22 cents for every dollar earned. It did so while using less capital than before.
-5%
12%
-22%
None at minus 5 cents, full points from 12 centsfull points
Capital allocation
14% of the score
74median 63
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
Share countUp 0.5% a year over 5 years: new shares
56
5%
-3%
0.5%
0 pointsfull points
Assets against salesAssets grew 7.8% a year, sales 11%
100
12%
-2%
-2.9%
0 pointsfull points
Cycle position
12% of the score
100median 63
Today's operating margin of 0.7% is 0.15x its normal 4.3%: near a trough. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
2x
1.5x
1x
0.7x
0.2x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 0.7%
Balance sheet
8% of the score
6median 50
What the debt weighs against the profit that has to carry it.
Interest coverOperating profit covers interest 2x
6
1.5x
12x
2.1x
0 pointsfull points
Earnings quality
6% of the score
81median 90
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
AccrualsCash ran ahead of profit by 4.2% of assets
81
8%
0%
-8%
-4.2%
0 pointsfull points
How the RyuScore works
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.