I use a service provided by Valuatum.com via Pörssisäätiö to screen stocks listed in NASDAQ OMX Helsinki. I use the screen periodically to check where our holdings stand relative to other companies listed in Helsinki. Naturally I am also continuously screening for new investment ideas.
The results of my personalized screen are disclosed below. I use different criteria and weights than the default "Liisa's list" that is featured in the pages of Pörssisäätiö. For example, Nokia was #24 today in Liisa's list while it is #97 in mine. Often I check both lists to get two different angles. Many companies in top 20 of both are the same.
Our positions are marked with prefix ">".
Rank Company (Score)
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#1 Orava Asuntorahasto (3,3)
#2 Fiskars (2,9)
#3 Technopolis (2,6)
>#4 Orion (2,5)
#5 Nokian Renkaat (2,4)
>#6 Fortum (2,4)
>#7 Siili Solutions (2,4)
#8 eQ (2,3)
#9 Sponda (2,3)
#10 Revenio Group (2,2)
#11 Ponsse (2,2)
>#12 Citycon (2,1)
>#13 TeliaSonera (2,0)
#14 Aspo (2,0)
#15 Keskisuomalainen (2,0)
#16 Restamax (2,0)
#17 United Bankers (1,9)
#18 Norvestia (1,9)
#19 Sampo (1,9)
#20 CapMan (1,9)
...
>#29 UPM (1,7)
>#65 Metso (1,0)
>#97 Nokia (0,3)
Average Score of all companies in the research database: 1,3
Average Score of our positions: 1,8
Median Score 1,1
Worst Score 0,2 (#98 Talvivaara)
Parameters used in screen (weight):
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P/B estimate 2014 (13%)
P/E estimate 2014, 2015 (8%, 10%)
Dividend yield estimate 2014, 2015 (8%, 8%)
ROA estimate 2014 (10%)
ROI estimated 3 year average 2012-2014 (8%)
ROE estimated 3 year average 2013-2015 (8%)
Turnover estimated increase 2013-2015 (8%)
Net Profit estimated increase in 2013-2015 (8%)
Gross Margin estimate 2014 (8%)
Profit Margin estimate 2014 (8%)
The used parameters emphasize attractive valuation (31%), profitability in broad sense (26% weight), growth (16%) and dividend yield (16%).
The screen relies on estimates about future. Those combined with volatility of stock prices means that you should not try to chase screens like these (I don't). Ultimately any investment decision should be based on much more than just looking at the current numbers and estimates of future numbers.
