Mining Precious Gems
Page 5
dividend yield of greater than 2 along with good Quarterly growth numbers.
4) Good Return Ratios with healthy dividend yield
Summary: Companies with good multi-year Fundamental Return Ratios
along with a healthy dividend yield.
Return on equity > 10 AND
Return on equity preceding year > 10 AND
Average return on equity 3Years > 10 AND
Average return on equity 5Years > 10 AND
Average return on equity 7Years > 10 AND
Average return on equity 10Years > 10 AND
Return on equity 5years growth > 10 AND
Dividend yield > 2
Highlights: This screen uses a comparison logic to screen for stocks with a
dividend yield of greater than 2 along with good multi-year averages of
ROE above 10.
5) Misc Value parameters with good Dividend
Summary: Companies with good Fundamental Value, l ow d
ebt a
nd h
ealthy
dividend.
Return on equity > 20 AND
Dividend Payout Ratio > 20 AND
Debt to equity >0 AND
Debt to equity < 1 AND
Dividend yield > 2 AND
PEG Ratio < 1
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
dividend yield of greater than 2 along Debt/Equity < 1 and PEG < 1 and
ROE above 20
Cash Flow Gems
These screens l ook f or stocks w
ith a
c
ompel ing a
nd consistent Cash f lows.
Ultimately it is present and future cash flows that differentiate and provide
sustainability to a business. Without consistent cash flows, a company
could head into a debt-trap disaster and even go bust! Hence, Cash flow
and working capital management is a prime gauge of management
efficiency and quality.
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1) Good Cash flow Value
Summary: Companies with healthy Cash flow status and available at good
value.
Cash end of last year > Cash beginning of last year AND
Operating cash flow 3years > Operating cash flow 5years AND
Investing cash flow 3years > Investing cash flow 5years AND
Free cash flow last year > 0 AND
Net cash flow last year > 0 AND
PEG Ratio < 1
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
increasing Cash flow situation and Free Cash Flow above 0, available at
PEG below 1
2) Good Cash flow Growth
Summary: Companies with healthy Cash flow status and good Quarterly
growth numbers.
Cash end of last year > Cash beginning of last year AND
Operating cash flow 3years > Operating cash flow 5years AND
Investing cash flow 3years > Investing cash flow 5years AND
Free cash flow last year > 0 AND
Net cash flow last year > 0 AND
YOY Quarterly sales growth > 10 AND
YOY Quarterly profit growth > 10 AND
QoQ Profits > 0 AND
QoQ Sales > 0
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
increasing Cash flow situation and Free Cash Flow above 0, with healthy
Quarterly growth rate in Sales/Profits.
3) Good Cash flow with Return Ratio
Summary: Companies with healthy Cash flow status and good Return
Ratios.
Cash end of last year > Cash beginning of last year AND
Operating cash flow 3years > Operating cash flow 5years AND
Investing cash flow 3years > Investing cash flow 5years AND
Free cash flow last year > 0 AND
Net cash flow last year > 0 AND
Return on Equity > 15 AND
Return on capital employed > 15 AND
Return on invested capital > 15
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
increasing Cash flow situation and Free Cash Flow above 0, with healthy
ROE/ROCE/ROIC of above 15 on a yearly basis.
4) Increasing Cash flow over years
Summary: Companies with compounding Cash flow parameters
Net cash flow last year > Operating cash flow 3years AND
Operating cash flow 3years > Operating cash flow 5years AND
Operating cash flow 5years > Operating cash flow 7years AND
Operating cash flow 7years > Operating cash flow 10years AND
Investing cash flow 3years > Investing cash flow 5years AND
Investing cash flow 5years > Investing cash flow 7years AND
Investing cash flow 7years > Investing cash flow 10years AND
Net cash flow last year > Investing cash flow 3years
Highlights: This screen uses a comparison logic to screen for stocks with a
multi-year compounding in their Cash Flows.
Versatile - Combo scans
These screens look for stocks with a holistic diverse set of parameters.
Companies that cross this barrier could be looked at as high potential
stocks that prospectively could return very good and safe return yield.
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1) Versatile companies - Screen 1
Summary: Companies that show strong growth in Profits/Margins available
at reasonable PEG Ratio
Profit after tax > 1.1* Profit after tax last year AND
Profit after tax > 1.1 * Profit after tax preceding year AND
Profit after tax latest quarter > 1.1 * Profit after tax preceding quarter AND
Profit after tax latest quarter > 1.1 * Profit after tax preceding year quarter AND
Net profit > 1.15 * Net Profit last year AND
Net profit > 1.1 * Net Profit preceding year AND
Net Profit latest quarter > 1.1 * Net Profit preceding quarter AND
Net Profit latest quarter > 1.1 * Net Profit preceding year quarter AND
NPM latest quarter > NPM preceding quarter AND
YOY Quarterly profit growth > 20 AND
QoQ Profits > 20 AND
OPM > OPM last year AND
OPM > OPM preceding year AND
OPM latest quarter > OPM preceding quarter AND
OPM latest quarter > OPM preceding year quarter AND
Profit growth > Profit growth 3Years AND
Debt to equity < 1 and
PEG Ratio < 1.5
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of Profit growth, Operating Margin growth and reasonable
valuation with PEG below 1.5
2) Versatile Companies - Screen 2
Summary: Companies that show strong growth in Sales/Profits available at
reasonable PEG Ratio
Sales growth >10 AND
Sales growth 3Years >10 AND
Sales growth 5Years >10 AND
Sales growth 7Years >10 AND
Sales g
rowth 10Years >10 AND
YOY Quarterly sales growth >10 AND
Profit growth >10 AND
Profit growth 3Years >10 AND
Profit growth 5Years >10 AND
Profit growth 7Years >10 AND
Profit growth 10Years >10 AND
YOY Quarterly profit growth >10 AND
QoQ Sales > 10 AND
QoQ Profits > 10 AND
Profit after tax > 10 AND
Profit after tax last year > 10 AND
Profit after tax preceding year > 10 AND
Profit after tax latest quarter > 10 AND
Profit after tax preceding year quarter AND
Average Earnings 5Year > 10 AND
Average Earnings 10Year > 10 AND
Net profit > 10 AND
Net Profit last year > 10 AND
Net Profit preceding year > 10 AND
Net Profit latest quarter > 10 AND
PEG Ratio < 1.5
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of Profit growth, Revenue growth and reasonable valuation
with PEG below 1.5
3) Versatile Companies - Screen 3
Summary: Companies that show strong growth o
n m
ultiple parameters a
nd
available at reasonable value.
Earnings yield > 10 AND
((Sales growth > Sales growth 3Years AND OPM > OPM 5Year) AND
(Return on equity > Average return on equity 3Years AND Return on equity >
Average return on equity 5Years)) AND
Return on capital employed > 20 and
YOY Quarterly sales growth > 10 and
YOY Quarterly profit growth > 15 and
Piotroski score >= 7 and
PEG Ratio < 1.5
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of Profit growth, Revenue growth, ROE growth with a
reasonable valuation with PEG below 1.5.
4) Versatile Companies - Screen 4
Summary: Pedigree companies that show strong growth on multiple
parameters and available at reasonable value.
Return on equity >25 AND
Debt to equity <1 AND
PEG Ratio <1 AND
YOY Quarterly sales growth >20 AND
YOY Quarterly profit growth >20 AND
Sales growth 3Years >20 AND
Profit growth 3Years >20 AND
Interest Coverage >5 AND
Average dividend payout 3years >10 AND
Current ratio >1 AND
Dividend yield >0.1 AND
Average return on equity 3Years >20 AND
Sales last year >200 AND
Return on equity 5years growth >10 AND
OPM >10 AND
NPM last year >4 AND
OPM latest quarter >10 AND
NPM latest quarter >4 AND
Return on capital employed >15 AND
Market Cap to Sales <5 AND
Current assets >debt AND
Sales last year > Net worth AND
PEG Ratio < 1.5
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of Profits/Sales/Return Ratio/Margins etc with a PEG below
1.5.
5) Versatile Companies - Screen 5
Summary: Companies that show strong growth on ROCE/ROE and
available at reasonable value.
Average return on capital employed 10Years > 20 AND
Average return on capital employed 7Years > 20 AND
Average return on capital employed 5Years > 20 AND
Average return on capital employed 3Years > 20 AND
Return on capital employed > 20 AND
Average return on equity 10Years > 15 AND
Average return on equity 7Years > 15 AND
Average return on equity 5Years > 15 AND
Average return on equity 3Years > 15 AND
Return on equity > 15 AND
Up from 52w low < 10% AND
PEG Ratio < 1.5
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of ROCE/ROE growth above 15 with a reasonable valuation
with PEG below 1.5 and available near yearly lows.
Screener custom parameters
These screens look for stocks that match certain unique parameters that
Screener.in has developed to effectively screen for stocks. These are
proprietary algorithms so we would not know how Screener folks are
calculating them, hence making it difficult to exactly correlate it with any
particular commonly known and loved Fundamental parameter.
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1) Using Screener’s G-Factor and P-Score
G Factor >=7 AND
Piotroski score >=7 AND
current price > 30 AND
debt to equity < 1 AND
Interest Coverage > 2 AND
Reserves > debt
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a
combination of certain screener custom parameters (G Factor / Piotroski
score) with health debt and leverage levels.
2) Based on expected numbers
Expected quarterly EPS > EPS AND
Expected quarterly EPS > EPS latest quarter AND
Expected quarterly sales > Sales AND
Expected quarterly sales > QoQ Sales AND
Expected quarterly net profit > Net profit AND
Expected quarterly net profit > Net Profit latest quarter AND
Expected quarterly sales growth > Sales growth AND
Expected quarterly sales growth > YOY Quarterly sales growth AND
Expected quarterly operating profit > Operating profit AND
Expected quarterly operating profit > Operating profit latest quarter
Highlights: This screen uses a comparison logic to screen for stocks
whose upcoming quarterly numbers based on Screener’s expected
quarterly results calculations are looking good
3) Price below Graham Number
current price < Graham Number AND
G Factor > 6 AND
Piotroski score > 7 AND
PEG Ratio < 1
Highlights: This screen uses a comparison logic to screen for stocks that
have good numbers on Screener parameters like G Factor, P-Score while
the current price is lesser than Graham Number! (a screener custom
parameter based on Benjamin Graham’s formula)
4) Reserves and Equity Capital based gems
Equity capital + Reserves > Market Capitalization AND
Debt < Equity capital + Reserves AND
Net profit > 0 AND
Net profit > Net Profit last year AND
OPM > 15 AND
Market Capitalization > 100 AND
Sales > Sales last year AND
EPS > EPS last year
Highlights: This screen uses a comparison logic to screen for stocks that
have healthy Reserves and under-valued on Market Capitalization, h
ealthy
debt levels and good growth on Profit, Sales, EPS and Margin on year
ly
basis.
Conclusion