Cornerstone Value is a five criteria large-cap dividend yield-focused value screen outlined in James O'Shaughnessy’s seminal 1996 book What Works on Wall Street.
His work showed that a large-caps stock portfolio with above average stock liquidity and cash flow per share which was ranked for high dividend yields performed best over the long term.
Accordiing to his work, this value strategy outperformed the market producing an annual compound return of 15% from 1954 to 1996, compared to 8.3% for the S&P 500 Index (his Cornerstone Growth Strategy achieved 18% but with greater volatility). more »
Market Capitalisation only takes into account the value of the company's shares (equity), it ignores the amount of debt a company may have taken on and therefore isn't the best indicator of the company's size. The Enterprise Value adds the net debt to the Market Cap and is a better indicator of the minimum amount that an acquiring company may have to pay to buy the firm outright.
This is sales over the last 12 months, translated in Pounds Sterling for all companies.
Stockopedia explains Sales £m...
The sales figure gives a sense for the scale of a company, although companies can have very different profit margins depending on the industry and state of the business, so this may not bear much relation to the earnings figure. Some however argue for the importance of sales, since sales figures are less easy to manipulate than either earnings or book value.
The total number of Shares that have been authorized/issued by the company, and purchased by investors. They have voting rights and represent ownership in the corporation by the person or institution that holds the shares. They should be distinguished from treasury stock, which is held by the company.
Stockopedia explains Shares Out...
Shares outstanding can be calculated as either basic or fully diluted. The fully diluted shares outstanding count includes diluting securities as options, warrants or convertibles.
Operating cash flow - or cash flow from operating activities - refers to the amount of cash a company generates from the revenues it brings in, excluding costs associated with long-term capital investment. It is similar to operating profit but excluding non-cash items and accruals.
Stockopedia explains OCF PS £...
Operating cash differs from free cash flow by excluding the effect of investment activities but it does include payments for taxes or interest as well as changes in working capital (unlike EBITDA. It does not take into account any cash raised by borrowing or issuing shares (cash flow from financing). In the long-run, a business must be able to make money from its operations.