the market.
So in order to find GARP/GARV type stocks, we wil have to combine the
Growth parameters (Sales/Profits/Margins/EPS etc) with the Value and
Ratio parameters (ROE/ROCE/PE/PEG etc) and come up with fusion
screens.
This is essential y the zone of ‘ Investing nirvana’ where we attempt to find
Growth stocks that market should ideal y favour at prices that are
favourable to us - to make wholesome gains in terms of profit and return
yield.
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1) Return Ratio Compounders
Summary: Identify companies that are steady compounders of their
multi-year ROE, ROCE Return Ratios now available at PEG < 1
Return on capital employed > Return on capital employed preceding year AND
Return on capital employed preceding year > Average return on capital
employed 3Years AND
Average return on capital employed 3Years > Average return on capital
employed 5Years AND
Average return on capital employed 5Years > Average return on capital
employed 7Years AND
Average return on capital employed 7Years > Average return on capital
employed 10Years AND
Return on equity > Return on equity preceding year AND
Return on equity preceding year > Average return on equity 3Years AND
Average return on equity 3Years > Average return on equity 5Years AND
Average return on equity 5Years > Average return on equity 7Years AND
Average return on equity 7Years > Average return on equity 10Years AND
PEG Ratio < 1
Highlights:
This screen uses a comparison logic to identify companies
have augmented multi-year growth on Average Return Ratios and pruned
the list to only include those with PEG Ratio of less than 1.
2) EPS Growth with good Return Ratio set on yearly basis
Summary: Identify companies that have shown good EPS growth on
Yearly and Quarterly basis recently along with good ROE/ROCE/ROIC
ratio available at PEG < 1.5
EPS latest quarter > 1.2 * EPS preceding year quarter AND
EPS latest quarter > 0 AND
EPS latest quarter > 1.2 * EPS preceding quarter AND
EPS > EPS preceding year AND
EPS > EPS last year AND
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Market Capitalization > 100 and
PEG Ratio < 1.5
Highlights:
This screen uses a comparison logic to identify companies
have good EPS growth along with ROE/ROCE/ROIC value of greater than
20 with a PEG Ratio below 1.5
3) EPS Growth with good value on multi-year Average Return Ratio
Summary: Identify companies that have shown good EPS growth on
Yearly and Quarterly basis recently along with good 3 year/5 year
ROE/ROCE/ROIC averages available at PEG < 1.5
EPS latest quarter > 1.2 * EPS preceding year quarter AND
EPS latest quarter > 0 AND
EPS latest quarter > 1.2 * EPS preceding quarter AND
EPS > EPS preceding year AND
EPS > EPS last year AND
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Average return on equity 3Years > 20 AND
Average return on equity 5Years > 20 AND
Average return on capital employed 3Years > 20 AND
Average return on capital employed 5Years > 20 AND
PEG RAtio < 1.5
Highlights: This screen uses a comparison logic to identify companies
have good EPS growth along with multi-year average ROE/ROCE/ROIC
value of greater than 20 with a PEG Ratio below 1.5
4) Quarterly Growth with good average return ratios
Summary: Identify companies that have shown good Sales/Profit growth
numbers in recent times and have a good record on their Average Return
Ratios.
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Average return on equity 3Years > 20 AND
Average return on equity 5Years > 20 AND
Average return on capital employed 3Years > 20 AND
Average return on capital employed 5Years > 20 AND
Market Capitalization > 100 AND
QoQ Profits > 20 AND
QoQ Sales > 20 AND
YOY Quarterly sales growth > 20 AND
YOY Quarterly profit growth > 20
Highlights:
This screen uses a comparison logic to identify companies
have good QoQ/YoY Profit and Sales numbers growth
along with
multi-year average ROE/ROCE/ROIC value of greater than 20.
5) Quarterly growers with good recent yearly return ratios
Summary: Identify companies that have shown good Sales/Profit growth
numbers in recent times and have a good ROE/ROCE value on a yearly
basis.
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Market Capitalization > 100 AND
QoQ Profits > 20 AND
QoQ Sales > 20 AND
YOY Quarterly sales growth > 20 AND
YOY Quarterly profit growth > 20
Highlights:
This screen uses a comparison logic to identify companies
have good QoQ/YoY Profit and Sales numbers growth along a yearly
ROE/ROCE/ROIC return ratio value greater than 20
6) Sales and Profit growth compounder with good set of Average
Return Ratios
Summary: Identify companies that have shown multi-year compounded
growth in Sales/Profit g
rowth n
umbers a
nd h
ave g
ood average R
OE/ROCE
value.
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Average return on equity 3Years > 20 AND
Average return on equity 5Years > 20 AND
Average return on capital employed 3Years > 20 AND
Average return on capital employed 5Years > 20 AND
Market Capitalization > 100 AND
Sales growth > 15 AND
Sales growth 3Years > 15 AND
Sales growth 5Years > 15 AND
Profit growth > 20 AND
Profit growth 3Years > 20 AND
Profit growth 5Years > 20
Highlights:
This screen uses a comparison logic to identify companies
have good multi-year Profit and Sales growth numbers growth along a
healthy average ROE/ROCE/ROIC return ratio value greater than 20
7) Yearly Sales and Profit growth with good Return Ratios available at
PEG < 1
Summary: Identify companies that have health growth and return ratios available at
PEG Ratio < 1.
Return on equity > 20 AND
Return on capital employed > 20 AND
Return on invested capital > 20 AND
Market Capitalization > 100 AND
Sales growth > 20 AND
Profit growth > 30 AND
PEG Ratio < 1
Highlights:
This screen uses a comparison logic to identify companies
have go
od Sales/Profit yearly growth with ROE/ROCE/ROIC greater than
20 and PEG Ratio < 1
8) 10% Allrounders
Summary: Identify companies that have a 10% performance al -round on
various growth and return ratio parameters
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
Sales growth > 10 AND
Profit growth > 10 AND
YOY Quarterly sales growth > 10 AND
YOY Quarterly profit growth > 10 AND
QoQ Profits > 10 AND
QoQ Sales > 10
Highlights: This screen uses a comparison logic t o i dentify c
ompanies a
re
growing at 10% al around - Sales/Profits/ROE/ROCE et al.
9) Good historical Ratio performers at reasonable PEG value
Summary: Return o
f E
quity c
ompounding c
ompanies a
vailable a
t P
EG r
atio
< 1
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
Sales growth > 10 AND
Profit growth > 10 AND
PEG Ratio < 1 AND
Price to earning / Profit growth < 1
Highlights: This screen uses a comparison logic to screen for stocks that
are compounding the ROE over 10% over multi-years, have yearly
Sales/Profit growth over 10% and available at PEG of below 1.
10) Good ratio performers at reasonable PEG and Price/Sales value
Summary: Return o
f E
quity c
ompounding c
ompanies a
vailable a
t P
EG r
atio
< 1 and Price/Sales < 1
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
Sales growth > 10 AND
Profit growth > 10 AND
PEG Ratio < 1 AND
Price to earning / Profit growth < 1 AND
Price to Sales < 1
Highlights:
This screen is similar basis as the previous screen 9) with
added criteria of Price/Sales < 1
11) Quarterly Growth with Value
Summary: Companies growing at 10% on Sales/Profit/ROE from a
quarterly numbers perspective available at PEG Ratio < 1 and Price/Sales
< 1
Return on equity > 10 AND
Return on equity preceding year > 10 AND
YOY Quarterly sales growth > 10 AND
YOY Quarterly profit growth > 10 AND
QoQ Profits > 10 AND
QoQ Sales > 10 AND
PEG Ratio < 1 AND
Price to Sales < 1
Highlights: This screen uses a
c
omparison logic t o s
creen f or s
tocks w
hich
have YOY and QOQ Sales/Profits growing at > 10%, with ROE value of
above 10 and PEG and P/S below 1.
12) EPS growth at good valuation from PEG and Price/Sales aspects
Summary: Companies growing at 10% on EPS quarterly and yearly
numbers available at PEG Ratio < 1 and Price/Sales < 1
Return on equity > 10 AND
Return on equity preceding year > 10 AND
PEG Ratio < 1 AND
Price to Sales < 1 AND
EPS latest quarter > 1.1 * EPS preceding quarter AND
EPS latest quarter > 1.1 * EPS preceding year quarter AND
EPS > 1.1 * EPS last year
Highlights: This screen uses a
c
omparison logic t o s
creen f or s
tocks w
hich
have healthy E
PS n
umbers, R
OE v
alues a
nd a
vailable a
t P
EG below 1
a
nd
P/S below 1
13) Undervalued from Price/Book-Value, PEG and Price/Sales with
good ratios and healthy Piotroski Score
Price to book value < 2 AND
Piotroski score > 7 AND
PEG Ratio < 1 AND
Price to Sales < 1 AND
Return on equity > 15 AND
Highlights: This screen uses a
c
omparison logic t o s
creen f or s
tocks w
hich
have healthy E
PS n
umbers, R
OE v
alues a
nd a
vailable a
t P
EG below 1
a
nd
P/S below 1
14) Good Valuations based on Misc. parameters
Return on invested capital > 20 AND
Earnings yield > 15 AND
EVEBITDA < 10 AND
Piotroski score > 7 AND
Market Capitalization > 100 AND
PEG Ratio < 1.5
Highlights: This screen uses a comparison logic to screen for stocks that
stand out based on a holistics set of miscel aneous valuation parameters -
like ROIC/ EY/ EVEBITDA/ P-Score and PEG.
Dividend Gems
These screens look for stocks with a compel ing and consistent dividend
yield which is another way of looking at stock return yield aside and apart
from the gain due to stock price increasing from the purchase price.
Consistency of dividend can also be somewhat inferred as ‘shareholder
friendly or shareholder concerned’ management.
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1) Increasing Dividend trend
Summary: Companies growing their dividend over multi-year
Dividend last year > Average 5years dividend AND
Dividend preceding year > Average 5years dividend AND
Dividend Payout > Average dividend payout 3years AND
Dividend yield > 2.5
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 2.5 while consistently i ncreasing t he d
ividend
over a multi-year period.
2) Good Dividend trend and good Valuations
Summary: Companies growing their dividend over multi-year, available now at
reasonable valuations
Dividend last year > Average 5years dividend AND
Dividend preceding year > Average 5years dividend AND
Dividend Payout > Average dividend payout 3years AND
Dividend yield > 2.5 AND
PEG Ratio < 1 AND
&
nbsp; Price to Sales < 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 2.5 while consistently i ncreasing t he d
ividend
over a multi-year period, further pruning t he l ist to t hose a
vailable a
t P
EG <
1 and P/S below 1
3) Quarterly growers with good Dividend Yield
Summary: Companies with good QOQ and YOY Sales/Profit growth and a
healthy dividend yield.
Dividend yield > 2 AND
YOY Quarterly sales growth > 10 AND
YOY Quarterly profit growth > 10 AND
QoQ Profits > 10 AND
QoQ Sales > 10
Highlights: This screen u
ses a
c
omparison logic t o s
creen f or s
tocks w
ith a