Strong growth potential, financial health

Strong growth potential, financial health Stock Screening Criteria Market Capitalization > 1 Billion Screens for mid- to large-cap companies with established operations and typically less volatility than smaller caps. Debt to Equity < 0.5 A lower debt-to-equity ratio indicates conservative financial leverage, signaling lower risk in periods of economic instability. Return on Equity (ROE) > 15% A ROE above 15% often suggests the company effectively generates profit from its equity, a good indicator of efficient management and competitive advantage. Return on Assets (ROA) > 8% ROA of at least 8% reflects efficient asset usage and helps ensure that the company is productive in turning its assets into profit. Return on Invested Capital (ROIC) > 12% ROIC above 12% signals strong use of both debt and equity capital, focusing on returns generated on all invested capital. Current Price > 50-Day and 200-Day Moving Averages Stocks trading above these moving averages demonstrate positive momentum and investor confidence. Earnings Per Share (EPS) Growth > 15% (Quarterly, YOY) EPS growth of 15% or more on a year-over-year basis indicates consistent earnings expansion. Revenue Growth (YOY) > 10% Consistent revenue growth of over 10% reflects increasing demand and market share growth, supporting sustainable earnings growth. Net Profit Growth (YOY) > 12% Net profit growth above 12% shows improvement in bottom-line profitability, a strong indicator of both efficiency and demand. Price-to-Earnings (P/E) < 30 A P/E ratio under 30 suggests that the stock is not overpriced relative to its earnings, making it appealing for growth at a fair price. PEG Ratio < 1.5 A PEG ratio below 1.5 aligns growth potential with a reasonable valuation. It shows that the stock’s price is justified by its growth rate. Operating Profit Margin (OPM) > 15% Operating margins above 15% indicate robust operational efficiency, showing that the company manages its core expenses well. Net Profit Margin (NPM) > 10% A net profit margin above 10% signals that a significant portion of revenue is retained as profit, a good indicator of financial health and pricing power. Free Cash Flow (FCF) > 10% of Revenue Free cash flow over 10% of revenue ensures that the company has solid cash generation, providing flexibility for investments, debt payments, or dividends. Interest Coverage Ratio > 4 A higher interest coverage ratio means the company earns enough to comfortably cover its interest payments, reducing risk from debt costs. Dividend Yield > 1% (if applicable) A dividend yield of at least 1% ensures that the company shares a portion of its profits with shareholders, which can be an added income stream. Payout Ratio < 60% A lower payout ratio means the company retains enough earnings for growth or reinvestment while still rewarding shareholders. Insider Ownership > 5% Higher insider ownership aligns management’s interests with shareholders, suggesting confidence in the company’s future. Volatility < 1.5 (Beta) Lower beta values (relative to the market) suggest more stability, making the stock less sensitive to market swings. Price to Book (P/B) < 3 A P/B ratio under 3 keeps valuations reasonable, ensuring the company’s market price isn’t excessively above its book value.

by Rsr