John-
Try this website for screening some of these criteria:
stockscreener.com
The problem with those criteria is that there are no valuation measures, there are no restrictions on market cap size, it is very difficult to screen for daily dollar volume (and that's a fairly worthless stat, IMO), and there's no balance sheet measures (like debt/equity).
Try Hoover's website and plug in the following values (I list the percentage of 7500+ stocks which would be eliminated by each individual screen):
profit margin % minimum= 10 (this eliminates 77% of all stocks)
latest 12 months revenues ($ millions) maximum= 200 (37% eliminated)
1 year sales growth rate % minimum= 25 (72% eliminated)
1 year earnings growth rate % minimum= 25 (75% eliminated)
5 year comp avg. sales growth rate % minimum= 25 (90% eliminated)
5 year comp avg. earnings growth rate % minimum= 25 (95% eliminated)
These 6 criteria, which are the only ones that can be screened at Hoover's site, yield 13 companies. They are the 6 criteria that you offered. Fewer than 0.2% of 7500% stocks remain.
Add my criteria to the list, and watch most of the remaining stocks disappear.
Balance sheet:
Current Ratio minimum= 2 (This eliminates 56% of all stocks)
debt/equity maximum= .1 (This eliminates 60% of all stocks)
Only 7 stocks remain after the balance sheet screen. Now add...
Profitability:
Return on Equity (ROE) % minimum= 20 (This eliminates 87% of all stocks)
Only 3 stocks remain after screening for ROE. Now add...
Valuation:
P/E to growth rate maximum= .67 (This eliminates 62% of all stocks)
Only 2 stocks remain after valuation screen. Now add...
Margin expansion (indicating increased gross margin and/or decreased SG&A):
5 year comp avg. operating margin growth rate % minimum= 5 (This eliminates 91% of all stocks)
Only 1 stock remains. I think you'll recognize the stock. And I think you'll agree that my criteria are very successful at identifying great stocks.
Just for the fun of it, try applying all of these criteria at once. Then, click "submit" and wait to find out which 1 stock out of 7500+ remains. Better yet, you could exclude your $200 million sales limit, and see the other 3 stocks which share the same space with the #1 stock.
Have fun!
Todd |
