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How Many Stocks Can Pass GuruFocus Value Screeners? - August 1, 2014

August 04, 2014
Vera Yuan

Vera Yuan

78 followers

GuruFocus provides value screeners for our Premium members to generate ideas with proven value strategies. The 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 June 2014 and July 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.

The following are the US stocks that passed at least three screeners as of August 1, 2014:

Table 1: Stocks Pass At Least Three Screeners - US

                 
 

GSOL

TDC

WMT

STNR

RCII

DGX

SGHIF

SGHIY

USNA

Benjamin Graham

                 

Undervalued Predictable

X

X

X

 

X

     

X

Buffett-Munger

X

X

           

X

Low P/S

   

X

X

 

X

X

X

 

Low P/B

X

X

X

X

X

X

X

X

 

Peter Lynch

       

X

X

X

X

X

Walter Schloss

     

X

         

The following are the Canadian stocks that passed at least two screeners as of August 1, 2014:

Table 2: Stocks Passed At Least Two Screeners - Canada

               
 

CNU

CRG

DL

KRN

JTC

SBT.UN

DNC

NFD.A

Benjamin Graham

 

X

X

X

X

X

X

X

Undervalued Predictable

               

Buffett-Munger

               

Low P/S

X

             

Low P/B

X

             

Peter Lynch

               

Walter Schloss

 

X

X

X

X

X

X

X

 

HMB

GIL

BNS

HCG

TGL

     

Benjamin Graham

X

             

Undervalued Predictable

 

X

X

X

       

Buffett-Munger

 

X

X

X

       

Low P/S

       

X

     

Low P/B

               

Peter Lynch

               

Walter Schloss

X

     

X

     

The following are the UK/Ireland’s stocks that passed at least two screeners as of August 1, 2014:

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

               
 

PTEC

AEP

AAVC

BSV

BSC

GOLD

MJW

DPLM

Benjamin Graham

   

X

X

X

     

Undervalued Predictable

X

         

X

X

Buffett-Munger

           

X

X

Low P/S

         

X

   

Low P/B

X

       

X

   

Peter Lynch

 

X

           

Walter Schloss

 

X

X

X

X

     
 

ROR

VCT

DTL

IGV

DGE

DGED

NBU

OTV5

Benjamin Graham

   

X

X

   

X

X

Undervalued Predictable

X

X

   

X

X

   

Buffett-Munger

X

X

           

Low P/S

               

Low P/B

       

X

X

   

Peter Lynch

               

Walter Schloss

   

X

X

   

X

X

 

FTV

FTVI

FTVP

KMGA

MIG4

     

Benjamin Graham

X

X

X

X

X

     

Undervalued Predictable

               

Buffett-Munger

               

Low P/S

               

Low P/B

               

Peter Lynch

               

Walter Schloss

X

X

X

X

X

     

The following are the European stocks that passed at least three screeners as of August 1, 2014:

Table 4: Stocks Passed At Least Three Screeners - Europe

               
 

LIUB

M4B

0GM2

USJ

LSG

LSGO

3T4

GL3

Exchange

FRA

FRA

LTS

FRA

OSL

OSTO

FRA

FRA

Benjamin Graham

               

Undervalued Predictable

X

X

X

X

X

X

X

X

Buffett-Munger

X

X

X

X

X

X

X

X

Low P/S

X

             

Low P/B

X

X

       

X

X

Peter Lynch

   

X

X

X

X

   

Walter Schloss

               
 

Z1L

QDI

SGI

         

Exchange

FRA

FRA

FRA

         

Benjamin Graham

               

Undervalued Predictable

X

             

Buffett-Munger

X

             

Low P/S

 

X

X

         

Low P/B

 

X

X

         

Peter Lynch

X

X

X

         

Walter Schloss

               

The following are the Asian stocks that passed at least three screeners as of August 1, 2014:

Table 5: Stocks Passed At Least Three Screeners - Aisa

             
 

600897

000690

03968

600036

601166

000069

00494

Exchange

SHSE

SZSE

HKSE

SHSE

SHSE

SZSE

HKSE

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

Low P/B

X

X

X

X

X

X

X

Peter Lynch

X

X

         

Walter Schloss

             
 

600729

600009

00696

600761

600583

E5P

600660

Exchange

SHSE

SHSE

HKSE

SHSE

SHSE

SGX

SHSE

Benjamin Graham

         

X

 

Undervalued Predictable

X

 

X

X

X

X

X

Buffett-Munger

X

X

X

X

X

X

X

Low P/S

X

X

         

Low P/B

X

X

   

X

 

X

Peter Lynch

 

X

X

X

     

Walter Schloss

             
 

600269

600004

00363

       

Exchange

SHSE

SHSE

SHSE

       

Benjamin Graham

             

Undervalued Predictable

             

Buffett-Munger

             

Low P/S

X

X

X

       

Low P/B

X

X

X

       

Peter Lynch

X

X

X

       

Walter Schloss

             

The following are the Oceania stocks that passed at least two screeners as of August 1, 2014:

Table 6: Stocks Passed At Least Two Screeners - Oceania

 

EQX

Exchange

ASX

Benjamin Graham

X

Undervalued Predictable

 

Buffett-Munger

 

Low P/S

 

Low P/B

 

Peter Lynch

 

Walter Schloss

X

The following are the brief summary of different screeners.

Benjamin Graham Net-Net Working Capital 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. It can maintain or even expand its profit margin while growing its 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 5 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 years revenue growth rate 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 have max 25% above 3-year low.

Both Peter Lynch Screener and Walter Schloss Screener can be found through 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 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.

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