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How Many Stocks Can Pass GuruFocus Value Screeners? – April 2, 2014

April 03, 2014 | About:
Vera Yuan

Vera Yuan

68 followers

GuruFocus provides value screeners for our Premium members to generate ideas with proven value strategies. GuruFocus All-In-One Screener also allows subscribers to create their own value screeners with more than 150 filters. Here we want to see how many companies pass different stock screeners in different region and which companies can pass most of the screeners. Here we want to see how many companies pass different stock screeners in different regions and which companies can pass most of the screeners. The February 2014 and March 2014 stock lists can be seen here and here separately.

The following are the number of companies that pass the screeners:

Note: Peter Lynch Screener and Walter Schloss Screener can be found through All-in-One Guru Screener. The complete stock list can be seen by clicking the link.

We can clearly see that Asian markets are where we can find most Ben Graham Net-Nets and Walter Schloss stocks. This is not surprising as emerging markets lost their favor. Chinese stock markets are traded at five-year lows.

On Nov. 4, 2013, Chairman of Oaktree Capital Group LLC, Howard Marks, said in Shanghai that China’s equities are “tremendous bargains” while U.S. stocks are “fairly to fully valued.” He believed just as investors were too optimistic about China’s market three years ago, now they were too pessimistic. Right now the Shanghai Composite's price-to-book ratio is about half of 2010's level and the P/E multiple is 42% lower. “We are investing in Chinese equities along with emerging markets,” Marks said. “Investors have lost all confidence in China.”

The following are the U.S. stocks that passed at least three screeners as of April 2, 2014:

Table 1: Stocks Pass At Least Three Screeners - US

                 
 

DE

RCII

USNA

WMT

SNP

AEPLF

DGX

SECCF

SECCY

Benjamin Graham

                 

Undervalued Predictable

X

X

X

X

         

Buffett-Munger

X

 

X

 

X

       

Low P/S

     

X

X

X

X

X

X

Low P/B

 

X

 

X

X

X

X

X

X

Peter Lynch

X

X

X

   

X

X

X

X

Walter Schloss

         

X

     

The following are the Canadian stocks that passed at least two screeners as of April 2, 2014:

Table 2: Stocks Passed At Least Two Screeners - Canada

               
 

CRG

CZQ

GRG

GTA

JTC

NUX

OKM.H

PHY.U

Benjamin Graham

X

X

X

X

X

X

X

X

Undervalued Predictable

               

Buffett-Munger

               

Low P/S

               

Low P/B

               

Peter Lynch

               

Walter Schloss

X

X

X

X

X

X

X

X

 

SBT.UN

WAS.P

BNS

GIL

HCG

TD

G

X

Benjamin Graham

X

X

           

Undervalued Predictable

   

X

X

X

X

   

Buffett-Munger

   

X

X

X

X

   

Low P/S

       

X

 

X

X

Low P/B

       

X

 

X

X

Peter Lynch

               

Walter Schloss

X

X

           

The following are the UK/Ireland’s stocks that passed at least two screeners as of April 2, 2014:

Table 3: Stocks Passed At Least Two Screeners - UK/Ireland

               
 

SRP

AEP

3LEG

ACHL

DPP

PPE

MJW

PAP

Benjamin Graham

   

X

X

X

X

   

Undervalued Predictable

X

         

X

X

Buffett-Munger

X

         

X

X

Low P/S

X

             

Low P/B

X

X

           

Peter Lynch

X

X

           

Walter Schloss

 

X

X

X

X

X

   
 

RB.

ROR

SXS

VCT

SNP

ITE

   

Benjamin Graham

               

Undervalued Predictable

X

X

X

X

       

Buffett-Munger

X

X

X

X

X

     

Low P/S

               

Low P/B

       

X

     

Peter Lynch

         

X

   

Walter Schloss

         

X

   

The following are the European stocks that passed at least three screeners as of April 2, 2014:

Table 4: Stocks Passed At Least Three Screeners - Europe

               
 

SEO

7HC

M4B

DCO

USJ

RAC

WMT

QDI

Exchange

FRA

FRA

FRA

FRA

FRA

FRA

FRA

FRA

Benjamin Graham

               

Undervalued Predictable

X

X

X

X

X

X

X

 

Buffett-Munger

X

X

X

X

X

     

Low P/S

X

X

X

     

X

X

Low P/B

X

X

X

   

X

X

X

Peter Lynch

X

   

X

X

X

 

X

Walter Schloss

               

The following are the Asian stocks that passed at least three screeners as of April 2, 2014:

Table 5: Stocks Passed At Least Three Screeners - Aisa

             
 

000690

000869

200869

600897

00589

03968

600036

Exchange

SZSE

SZSE

SZSE

SHSE

HKSE

HKSE

SHSE

Benjamin Graham

             

Undervalued Predictable

X

X

X

X

X

X

X

Buffett-Munger

X

X

X

X

X

X

X

Low P/S

X

X

X

X

X

X

X

Low P/B

X

X

X

X

X

X

X

Peter Lynch

X

X

X

X

     

Walter Schloss

       

X

   
 

600729

02355

600761

600660

01988

600009

600011

Exchange

SHSE

HKSE

SHSE

SHSE

HKSE

SHSE

SHSE

Benjamin Graham

             

Undervalued Predictable

X

X

X

X

     

Buffett-Munger

X

X

X

X

X

   

Low P/S

X

     

X

X

X

Low P/B

X

   

X

X

X

X

Peter Lynch

 

X

X

   

X

X

Walter Schloss

             

The following are the Oceania stocks that passed at least two screeners as of April 2, 2014:

Table 6: Stocks Passed At Least Two Screeners - Oceania

         
 

BRM

DIS

GRY

IRN

MAK

MWN

MZM

NXM

Exchange

NZSE

ASX

ASX

ASX

ASX

ASX

ASX

ASX

Benjamin Graham

X

X

X

X

X

X

X

X

Undervalued Predictable

               

Buffett-Munger

               

Low P/S

               

Low P/B

               

Peter Lynch

               

Walter Schloss

X

X

X

X

X

X

X

X

 

CHN

PPP

SWR

UUL

APE

     

Exchange

ASX

ASX

ASX

ASX

ASX

     

Benjamin Graham

X

X

X

X

       

Undervalued Predictable

       

X

     

Buffett-Munger

       

X

     

Low P/S

               

Low P/B

               

Peter Lynch

               

Walter Schloss

X

X

X

X

       

The following are the brief summary of different screeners.

Benjamin Graham Net Current Asset Value Screener

Benjamin Graham defined the net-net value as Cash and short-term investments + (0.75 * accounts receivable) + (0.5 * inventory) - total liabilities. He looked for companies whose market values were less than two-thirds of that net-net value. The rules of the screener are as follows:

  • The stock prices are less than the net current asset value of the companies – Benjamin Graham.
  • During the past 12 months, the companies generated positive operating cash flow.
  • The company has no meaningful debt compared to its cash position.
  • According to Benjamin Graham, some of these companies may well go under as economic conditions worsen; it is important to hold a diversified group of them.

Undervalued Predictable Companies - Discount Cash Flow and Discount Earnings

GuruFocus applied the discounted cash flow and discounted earnings to the top ranked predictable companies, and calculated the intrinsic values of the these companies. These are the companies that appeared to be undervalued. The intrinsic value of the companies is calculated with Future Earnings at Growth Stage + Terminal Value.

Buffett-Munger Screener - Good Companies at Fair or Undervalued Prices

The Buffett-Munger Screener can be used to find companies with high-quality business at undervalued or fair-valued prices:

  • Companies that have high Predictability Rank, that is, companies that can consistently grow their revenue and earnings.
  • Companies that have competitive advantages: They can maintain or even expand profit margin while growing the business.
  • Companies that incur little debt while growing business.
  • Companies that are fair valued or under-valued. We use PEPG as indicator. PEPG is the P/E ratio divided by the average growth rate of EBITDA over the past five years.

Companies at Historical Low Price/Sales Ratios

These companies have been very predictable in their business operations. They are sold at close to historical low price/sales ratios. Their sales and earnings have consistently grown for at least the past decade. However, the price/sales (P/S) ratio of each of these companies is less than 30% above its historical low.

Companies at Historical Low Price/Book Ratios

These are the predictable companies that are sold at close to historical low price/book (P/B) ratios. Their sales and earnings have consistently grown for at least the past decade. However, the price/book (P/B) ratios of these companies are less than 30% above their historical lows.

Peter Lynch Screener

  • Companies that have Predictability Rank of at least 2 stars.
  • Companies that have P/E ratio of at most 14.
  • Companies that have 10-year revenue growth rates of at least 6%.

Walter Schloss’s Screener

  • Companies that have Altman Z-Score of at least 2.99. Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations. Altman Z-Score is calculated with this formula: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 where

X1 = working capital/total assets,

X2 = retained earnings/total assets,

X3 = earnings before interest and taxes/total assets,

X4 = market value equity/book value of total liabilities,

X5 = sales/total assets.

  • Companies that have interest coverage of at least 10. It is a ratio that measures the burden of the debt a company carries and how easily the company can pay off its debt. It is calculated by dividing a company’s Operating Income (EBIT) by its Interest Expense.
  • Companies that have price to tangible book of at most 1.0.
  • Companies that are max 25% above their three-year low.

Both Peter Lynch Screener and Walter Schloss Screener can be found through the All-in-One Guru Screener. GuruFocus premium membership is needed to access the details of the portfolios and screeners. We also publish a monthly Buffett-Munger newsletter which features the picks from the Buffett-Munger Screener. If you are a premium member, you can download this for free. If you are not a Premium Member, we invite you for a 7-day Free Trial.

GuruFocus Global Membership allows you to screen for bargains in Global Markets. We now cover more than 50,000 stocks in 32 countries across five regions. Take a 7-day Free Trial.


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