A hardcore intrinsic value investing screen based on buying with a significant Margin of Safety but not as demanding as Graham's set of Defensive Screen criteria.
Despite the name, this is not a growth screen. Graham felt defensive investors should confine their holdings to the shares of large, prominent/important, and conservatively financed companies with long histories of profitable operations. In contrast, entreprising investors could expand their universe outside of these “important” companies. He suggests looking at i) the relatively unpopular large company, ii) “special situations”, and iii) “bargain issues”. more »
The Price to Earnings Ratio (also called the PE ratio) is the primary valuation ratio used by most equity investors. It is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.A hig P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation. Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question. The reciprocal of the P/E ratio is known as the earnings yield.
Stockopedia explains P/E...
This is is the primary valuation ratio used by most equity investors. A high P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio can be seen as being expressed in years, in the sense that it shows the number of years of earnings which would be required to pay back the purchase price, ignoring inflation.
Unlike the EV/EBITDA multiple which is capital structure-neutral, the price-to-earnings ratio reflects the capital structure of the company in question
This is the ratio of Total Current Assets divided by Total Current Liabilities for the same period. NOTE: This item is Not Available (NA) for Banks, Insurance companies and other companies that do not distinguish between current and long term assets and liabilities.
BHP Billiton Long Term Debt = 30,327 BHP Billiton Working Capital = 4,232
What is the definition of Long Term Debt?
Long-Term Debt represents debt with maturities beyond one year. Long-Term Debt may consist of long-term bank borrowings, bonds, convertible bonds, etc.
Long-Term Debt includes:
1) Bonds (convertible or not; secured and unsecured), debentures, long-term bank borrowings, long-term notes payable, mortgage loans, senior debt, subordinated notes
2) Debts/borrowings from or notes payable to shareholders, officers, directors, employees
3) Financial Derivatives for Financial Companies
Long-Term Debt excludes:
1) Commercial paper in banks when liabilities of a company are not delineated between current and non- current.
Stockopedia explains Long Term Debt...
Investors look at a company’s long term debt to gauge how much leverage it has. Like shareholders, the holders of long term debt are suppliers of funds but they rank higher than shareholders in getting their money back if a company fails.
For how many out of the last 5 consecutive years has the company reported profits? Profit Streak measures the number of consecutive years within the last five years that the company has reported profits.
Diluted EPS figure indicates the earnings per-share a business would have generated if all stock options and other sources of dilution that were currently exercisable are taken into account. This version has been normalised to exclude exceptional income and charges, better reflecting underlying results
This ratio is calculated by dividing the latest Price Close by Tangible Book Value per share. This ratio gives an idea of whether an investor is paying too much for what would be left if the company went into liquidation as it represents the hard assets of the company.
Stockopedia explains P/TB...
Theoretically, PTBV represents the hard assets of the company, i.e. the amount of money that shareholders would receive for each share owned if the company were to liquidate its operations. Some 'intangible' assets can have questionable value - for example a company might have overpaid for an acquisition and conservative value investors sometimes prefer to remove them when valuing a company.
A higher PTBV may indicates a higher level of risk due to increased potential for share price losses. However, tangible book value may be substantially different from market value, especially in high-tech, knowledge-based and other industries whose primary assets are not tangible.
This indicates whether the company's main listing is in London. There are many dual listed companies on the London exchange who have their primary listing elsewhere. It's value is set to either 1 or 0 where 1 indicates a primary listing in London.
Stockopedia explains Is Primary Listing...
This can be a useful flag for identifying companies eligible for inclusion in tax efficient wrappers like ISAs and SIPPs.
To filter for primary listed stocks in the relevant exchange, set this value equal to 1, or to find stocks that are primary listed elsewhere set this equal to zero.