This scanner generates a list of companies that meet the criteria Henry Singleton’s stock selection method.
Magic Formula Investing (MFI) is a popular investment strategy that was introduced by Joel Greenblatt in his book “The Little Book That Beats the Market”. The MFI strategy is based on a simple formula that aims to identify quality companies at bargain prices.
Scanner Rules:
- Debt to equity < 1
- Promoter holding > 40
- Pledged percentage < 20
- Market Capitalization >300
- Operating cash flow 3years >7
- Average return on capital employed 5Years >20
- Average return on equity 3Years >20
- Interest Coverage Ratio >3
- PEG Ratio <1.1
- Price to Free Cash Flow >0
- Price to Free Cash Flow<60
- Sales growth 5Years >10