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What are the available stock investment criteria for your custom stock screening and analysis?

With the Obermatt stock screen and analysis, you can select and combine multiple investment criteria. The results table shows a ranking of the best matching shares with the top shares at the top of the table. Why Indexing is better for stock screening.

Combined Rank

Any Obermatt stock analysis is based on the Obermatt Combined Rank. The Combined Rank is the average of all ranks of selected investment criteria. Obermatt sorts the analyzed shares by Combined Rank in descending order so that the best stock tips based on your criteria are on top of the result table. Investment criteria most important to you can be over-weighted by selecting them multiple times.

Growth metrics for growth investing

Investors choose growth metrics as investment criteria if they expect that the momentum of a stock will lead to better shareholder returns. This could be the case for growth companies (high tech, bio technology, etc.), growth regions (emerging countries, BRIC, etc.), up-cycles or stock market recovery phases. Companies that have superior growth metrics compared with their peers rank best in growth metric based rankings.

Revenue growth

Revenue growth = Revenue of current year ÷ Revenue of previous year -1

Profit growth

Profit growth = Profit of current year ÷ Profit of previous year -1

For financial companies, we use operating profit as profit metric. For all other companies, we measure profit at EBITDA or EBIT (in case of segment reporting) level.

Stock returns

Stock return = Total shareholder return = Return or profit on equity market value (market capitalization) including profits from share price changes, dividend payments and other capital transactions during the measurement period.

Value metrics for value investing

Investors choose value or valuation metrics as investment criteria if they expect undervalued shares will lead to better shareholder returns. This could be the case for long-term investment strategies or in phases of down-cycles or recessions. Companies that have relatively low market values compared to their peers rank best in value metric based rankings.

Price/Earnings Ratio

Price/Earnings Ratio = Market value of equity (market capitalization) ÷ Net profit

We use the share price at the end of the period and the net profit during the period.

Market-to-Book Ratio

Market-to-Book Ratio = Market value of equity (market capitalization) ÷ (book value of equity + book value of net debt)

We use the share price and the book values at the end of the period.

Price/Sales Ratio

Price/Sales Ratio = Market value of equity (market capitalization) ÷ Revenue

We use the share price at the end of the period and total revenue from the period.

Risk metrics for safe investments

Investors choose safety or risk metrics as investment criteria if they expect that solvent or safe shares will lead to better shareholder returns. This could be the case in turbulent or volatile times or in phases of down-cycles or recessions. Companies that have relatively high solvency or cash reserves compared with their peers rank best in risk metric based rankings.

Leverage

Leverage = Net debt ÷ equity

We use net debt and equity at book values at the end of the period. The equation above is called gearing in finance theory: The higher the gearing, the riskier the financing of the company.

Liquidity

Liquidity = Average cash flow from operating activities over three years ÷ Net debt

We use net debt at the end of the period. The cash flow from operating activities is the average EBITDA (earnings before interest, taxes, depreciation and amortization) of the three years preceding the measurement time period. The higher this ratio, the easier it is for the company to pay back debt.

Share price volatility (Beta)

Share price volatility is measured based on the share price beta. This is a metric to measure the volatility of the share price against the volatility of the entire market: The higher the beta, the riskier the stock. The beta is based on between 23 and 35 consecutive month end share price percent changes compared with a local market index. This is an inverse ranking at Obermatt: The higher the “Share Price Volatility”, the lower the beta compared to its peers.

Metrics for corporate governance for ethical investments

Investors choose corporate governance metrics as investment criteria if they expect that companies with good governance will provide better shareholder returns. This could be the case for long-term investment strategies or in turbulent or volatile times or in phases of down-cycles or recessions. Investors also select corporate governance criteria for personal ethics. The rankings are compiled in a way that companies with better governance have higher rankings. The exact ranking method is specified for each metric separately below.

Pay-for-Performance

Pay-for-Performance shows the highest rank (100%) for those companies where most performance was provided in relation to executive remuneration and compensation. Companies with low values (close to 0%) have provided more limited performance compared to executive remuneration and compensation. Remuneration and performance is measured over three years. Performance is based on the combined rank of profit growth and stock returns (average over 3 years).

Dividend Yield

Dividend Yield = Dividends ÷ Market value of equity (market capitalization)

We use share prices from the end of the period and dividend pay-outs during the period.

The higher this value relative to peers, the higher the rank.

Stock liquidity

Stock liquidity is the volume of traded shares in comparison to other shares in the same geographic market. The higher this value relative to peers, the more liquid the shares, the higher the rank.

Free float

Free float = Shares traded in the public ÷ Total shares outstanding