We ran a screen to filter stocks with the following criteria:
- Companies domiciled and listed in North America, Western Europe, and Singapore i.e. devloped markets.
- Primary security of the company only, with active trading status.
- Low P/E: below 12x. In other words, high immediate earnings power (earnings yield on each dollar invested today) of over 8% per year.
- Low Debt / Capital
- High ROE: above 10% per year average over the last 5 years.
- High Diluted EPS growth: above 10% per year average over the last 5 years.
- Market capitalization over 1 billion USD.
- Low Enterprise Value (at VSJ, we call it Enterprise Cost): below 1.3x Market capitalization
This screener resulted in only 31 stocks from across the developed world, out of tens of thousands of listed companies. This is a remarkable small list, which make research and selection a lot easier and quicker.
The following 8 caught our attention:
- Audi AG (Germany)
- Universal Insurance Holdings (USA)
- Rentokil Initial PLC (Britain)
- Cirrus Logic Inc (USA)
- Canfor Pulp Products Inc (Canada)
- MGI Coutier (France)
- Industrial Alliance Insurance (Canada)
- JetBlue Airways Corp (USA)
I would highly recommend you research them fully, and understand them. Feel free to comment your thoughts on each of them below this post.
To your profitable investing,