Helsinki Top 20

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. Often I check both lists to get two different angles.

This time the Top 20 list contains many small companies in Top 10. Many of them are in investment/banking business.


Our positions are marked with prefix ">".

Rank Company (Score)
----------------------------------------
#1 United Bankers (3,3)
#2 Investors House (3,0)
#3 eQ (2,9)
#4 Orava Asuntorahasto (2,9)
#5 CapMan (2,8)
#6 Suomen Hoivatilat (2,8)
>#7 Citycon (2,5)
#8 Technopolis (2,4)
#9 Raute (2,4)
#10 Revenio Group (2,3)
#11 Taaleri (2,3)
#12 Sponda (2,2)
#13 Sampo (2,1)
#14 Restamax (2,1)
>#15 Siili Solutions (2,1)
#16 SRV Yhtiot (2,1)
#17 Martela (2,1)
#18 Orion (2,0)
#19 Ramirent (2,0)
#20 Okmetic (2,0)

...

>#31 Fortum (1,7)
>#35 Telia (1,6)
>#37 UPM (1,6)
>#51 Nokia (1,5)
>#72 Metso (1,2)

...

Average Score of all companies in the research database: 1,4
Average Score of our positions: 1,7

Median Score 1,4
Our positions that have higher score than median: 6 out of 7

Worst Score 0,1 (#110 Basware)


Parameters used in screen (weight):
-------------------------------------------
 P/B estimate current year (13%)
 P/E estimate current year; next year (8%; 10%)
 Dividend yield estimate current year; next year (8%, 8%)
 ROA estimate current year (10%)
 ROI estimated 3 year average ending current year (8%)
 ROE estimated 3 year average ending next year (8%)
 Turnover estimated increase in 3 years ending next year (8%)
 Net Profit estimated increase in 3 years ending next year (8%)
 Gross Margin estimate current year (8%)
 Profit Margin estimate current year (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.