This popular credit-strength measure aims to show how likely a company is to go bankrupt. Risky companies have a score below 1.8 and solid companies have a score of 3.0 or higher. Financial institutions like banks are not scored.
A statistical model for determining if the company’s earnings have a high probability of accounting manipulation. An M-Score rating over -1.78 suggests possible earnings manipulation. Professor Beneish found that investing in low M-Score stocks and shorting high M-Score stocks would have outperformed the market by about 15% over the 7-year period he studied.
Our growth score looks at the 5 year history and also the forward estimates for EBITDA, Sales, and EPS growth to rank the best companies across all stocks with adequate data. The best companies score a 100 and the worst score a 0.
The Financial Health Grade from Morningstar based on Financial Leverage (assets/equity) from the most recent quarter’s balance sheet, cash on the balance sheet, cash flows, and free cash flows and its trend.
The Growth Grade from Morningstar based on historical sales growth, year-by-year sales growth over the past 5 years and its growth trend.
The Profitability Grade from Morningstar based on average level of a company’s returns on capital over the past 5 years, its capital return trend and consistency.
The Piotroski score determines the financial strength of a company based on 9 criteria. Companies with a score of 8 or 9 are considered strong and a score between 0 and 2 indicates a weak company.
Our quality score compares profitability and balance sheet metrics to find high quality companies. Our computation includes ROIC, Net Margin, Gross Margin, Interest Coverage, and Debt / Equity ratio values. The best companies score a 100 and the worst score a 0.
Our sentiment score finds stocks that the market favors by comparing Short Interest Ratios, returns over several periods within the last year, Price vs. 52-wk High, Days Since 52-wk High and MACD signals. The best companies score a 100 and the worst score a 0.
Our value score looks at EV / EBITDA, P/E, EPS Predictability, Price / Tangible Book, and Price / Sales. The Price / Tangible Book and Price / Sales values are compared within a sector whereas the other metrics are compared across all stocks with adequate data. The best companies score a 100 and the worst score a 0.