I use a service provided by Valuatum.com via Pörssisäätiö to screen stocks listed in NASDAQ OMX Helsinki. I was not able to rank the following companies due to missing data: Nordea, Sampo, SSAB, Amer Sports and DNA.
Top 10
- Citycon - score 2,2 - market cap 2,0 billion euros
- Sponda - score 2,2 - market cap 1,4 billion euros
- Orion - score 1,9 - market cap 7,3 billion euros
- Telia - score 1,8 - market cap 16,8 billion euros
- Nokian Renkaat - score 1,8 - market cap 5,3 billion euros
- Sanoma - score 1,8 - market cap 1,3 billion euros
- Elisa - score 1,7 - market cap 5,6 billion euros
- Kone - score 1,4 - market cap 21,2 billion euros
- Fortum - score 1,4 - market cap 12,8 billion euros
- Neste - score 1,4 - market cap 8,9 billion euros
Median Score 1,3
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.
Disclosure: Author is shareholder in Citycon and Fortum.
