Fundamental-Analysis-Screener

Lines 1-3 look for sales growth. First line is QoQ comparison (10% growth expected). Second line is YoY comparison (20% growth expected). Third line is just there to ensure 12 month sales is also growing. Line 4 filters out companies with no operating profit. This line is very crude right now, but at least it filters out companies that are growing but not having even operating profits. Operating profits doesnt include interest expense, so it is bad if a company is not having operating profit with growing sales. Line 5 is debt to equity filter. 1 is okayish, but something like 0.75 or even 0.5 is better. Line 6 is to filter out value traps. You don't want to invest in companies less than 200cr market capitalisation. Depending on your risk appetite you may want to increase this number. 200 is probably the lowest you should be going. I have changed it to 500cr according to my risk appetite. And finally, line 7 is about ROIC. ROIC above 20% is a generic thumb rule. You often find investors looking for companies with high internal returns on investment. ROIC or ROCE captures that. Returns on invested capital need to be high like 20%, because the returns will eventually be consumed in other parts of the business, before they make it back to shareholders in form of EPS

by Suraj