John Neff Value Screen 5 Qualifying in UK

A hard-core contrarian value screen, albeit one using the ‘total return ratio’ in order to combine value metrics with growth. Although he didn’t like the term, Neff was essentially a contrarian investor buying good companies with moderate growth and high dividends while out of favour, and selling them once they rose to fair value. He looked for both value and growth or rather "good companies, in good industries, at low price-to-earnings prices". To identify these, his approach adds the expected future growth rate to the dividend yield, and divided by the PE ratio to give what he termed the ‘terminal relationship’ or, more colloquially, ‘what you pay for what you get’.   To learn more about this strategy please click here »

This is an independent study based upon the methods of...
Picture of John Neff

John Neff

Famous contrarian investor known as the "professional's professional" because many fund managers entrusted their money to him

John Neff On Investing

by John Neff, S.L. Mintz

Published in 2001, this book outlines Neff's investment philosophy. John Neff's average annual total return from Vanguard's Windsor Fund during his 31-year tenure (1964-1995) as portfolio manager was 13.7%. He exceeded the market rate of return by more than 3.5% on a gross basis (and 3.15% on a net basis). He showed a great consistency in beating the broad market index 22 times and was regularly in the top percent of money managers.

This screen is based on a UK dataset. It uses the following criteria:

  • PEGY < 1
  • Sales Gwth Streak >= 4
  • EPS 5y CAGR % > 2
  • EPS 5y CAGR % < 20
  • P/E < Economic SectorMedian
  • FCF > FCF 1y Ago
  • Op Profit > Op Profit 1y ago
  • Op Mgn % > Economic SectorMedian

Results are sorted by:

  • P/E in ascending order

And limited to the first 200 Results

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Performance Tracking

Returns FTSE 100
1 week -4.8% -2.4% -1.2% 0.1%
1 month -1.8% -0.6% -0.1% 0.5%
3 months 10.5% 9.7% 4.7% 3.5%
6 months 20.8% 23.1% 10.9% 10.1%
1 year 15.5% 17.0% - 5.9%
2 years 58.9% - - 10.4%
Annualised 8.9% 16.6% 24.3%
Max Drawdown -23.6% -12.9% -10.4%
Avg Holdings 3.3 8.8 21.8
Diversification Low Moderate Good

 Studies based on equal weighted portfolios of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.

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Ticker Name P/E Sales 5y CAGR % EPS 5y CAGR % FCF PEGY Op Mgn %
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Can't see the share you expect? View this screen as a checklist to find out why.

You should consider the results of any screening process, including this one, as candidates for further research, not as a buy list. Screening helps to narrow a search based on pre-defined criteria. It is not a substitute for independent research reflecting your individual criteria for investing/trading. Please note that the screening criteria used represents Stockopedia's interpretation of the author's investment approach and are not determined or endorsed by the original strategist.