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Kenneth Fisher Price to Sales Screen 3 Qualifying in UK

This screen implements the criteria laid out by Kenneth Fisher in his 1984 Dow Jones book, "Super Stocks".  The main criteria used by Fisher was the price-to-sales ratio (PSR). Fisher argued that stocks with PSRs below 1.5 are good value while the real winners are those with PSR values under 0.75.  The exception to this was “smokestack” industries which don’t generate a lot of excitement, for which the PSR target should be between 0.4 and 0.8. The other criteria he highlighted were: Profit margins - He wanted three-year average net margins to be at least 5% The debt/equity ratio - This should be no greater than 40 percent, and is not applied to financial firms) Earnings growth - The inflation-adjusted long-term EPS growth rate should be at least 15% per year).   An optional criterion (to be used in the technology and medical industries) was: Price to Research Ratio - Less than 5% was the best case, and those between 5 and 10% were still indicative of bargains. Less than 15 percent was borderline.   To learn more about this strategy please click here »

Picture of Kenneth Fisher

About Kenneth Fisher

Founder, chairman, and CEO of Fisher Investments. Author of 'Super Stocks'

Super Stocks

by Kenneth L. Fisher

Kenneth Fisher's 1984 book was seminal in identifying the significance of the price-to-sales ratio (PSR) as a value indicator. 

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

  • P/S < 0.75
  • Net Mgn % 5y Avg > 5
  • Gearing % < 40
  • FCF > 0
  • EPS 5y CAGR % > 15
  • # Brokers < 10

Results are sorted by:

  • P/S in ascending order


And limited to the first 200 Results


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Kenneth Fisher Price to Sales Screen Graphical History in

Returns

Timeframe Screen Returns FTSE 100 Outperformance
1 week N/A -0.10% 0.1%
1 month 45.55% 0.86% 44.7%
3 months 22.01% -3.46% 25.5%
6 months 40.02% 0.54% 39.5%
1 year 40.09% 3.79% 36.3%
2 years 31.01% 16.50% 14.5%
Since inception 33.86% 22.7% 11.2%
Annualised 13.27%

Risk

Maximum Drawdown-21.29%
Average No. of Holdings5.2
Diversification LevelLow

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


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3 Qualifying in

Ticker Name Mkt Cap £m P/S Net Mgn % 5y Avg Gearing % FCF EPS 5y CAGR % # Brokers Sector
Subscriber Subscriber Consumer Cyclicals  
Subscriber Subscriber Consumer Cyclicals  
Subscriber Subscriber Healthcare  

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.