How to use our stock screeners - the ultimate guide

 

Fundamental Criteria - use these criteria to find stocks with solid financials or good value

Screener
Criteria
Industry Type Bad
(SELL)
Mediocre Good
(BUY)
Comments Definitions
Qtrly Revenue Growth YOY Non-Growth less than 1% 1% to 5% Greater than 5% Would tend to be higher in growth industries Quarterly Revenue Growth compares the most recent quarter's revenue to those from the previous year. The higher the growth rate, the better.
  Growth less than 4% 4% to 10% Greater than 10%    
Qtrly Earnings Growth YOY Non-Growth less than 1% 1% to 5% Greater than 5% Would tend to be higher in growth industries Quarterly Earnings Growth compares the most recent quarter's earnings to those from the previous year. The higher the growth rate, the better
  Growth less than 4% 4% to 10% Greater than 10%    
Dividend Yield N/A if less than 1%, dividends should not be a driving factor in the investment   if greater than 3%, dividends should be considered as a positive factor in the investment Typically, dividends are seen most often in larger companies, not young growth companies The dividend yield equals the annual dividend per share divided by the current price.
Return on Equity Non-Growth less than 5% 5% to 15% greater than 15%   ROE is the amount of net income returned as a percentage of shareholders equity. Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.
  Growth less than 10% 10% to 20% greater than 20%    
Enterprise Value/EBITDA Non-Growth greater than 18 10 to 18 less than 10 Also known as Enterprise Multiple. Lower the better if you're looking for value. Less than 5 would be deep value. Would tend to be higher in growth industries Enterprise Value is the company’s market capitalization plus its net cash. It is how much cash it would take to buy the company and pay off all of its debts. Higher numbers imply the stock is expensive.
  Growth greater than 24 14 to 24 less than 14    
Debt to Equity   greater that 2 1 to 2 less than 1   Debt-to-Equity is the ratio of a company's liabilities (or sometimes just its long-term debt) to its shareholders equity. These values can be found on the balance sheet.
Market Capitalization Non-Growth   less than $300M greater than $300M If you are not comfortable with small, risky companies, you can use Market Cap to filter these kinds of stocks Market Capitalization is the total dollar market value of all of a company's outstanding shares.
  Growth          
PE Non-Growth greater than 30 18 to 30 less than 18 lower indicates good value, varies by industry with PE's in growth industries generally being higher The PE ratio is simply the price per share divided the earnings per share for the trailing 12 months
  Growth greater than 45 29 to 45 less than 29    
Price-to-Sales Non-Growth greater than 8 between 2 and 8 less than 2 low ratio indicates good value, varies by industry Simple ratio of Stock Price to Sales.
  Growth greater than 10 3 to 10 less than 3    
Price-to-Book Non-Growth greater than 10 4 to 10 less than 4 low ratio indicates good value, varies by industry Ratio of Stock Price to (Total Assets - Intangible Assets and Liabilities)
  Growth greater than 12 6 to 12 less than 6    
PEG Non-Growth greater than 3.5 1.1 to 3.5 less than 1.1 less than 1.1 equals good value PEG is the ratio of (Price/Earnings Ratio) divided by (Annual Earnings Growth Rate)
  Growth          
Price to Cash N/A greater than 50 between 3 and 50 less than 3 lower the better  
Price to Free Cash Flow N/A greater than 50 between 15 and 50 less than 15 lower the better