STOCK STRATEGIES April 3, 2009, 12:01AM EST

A Stock Screen with a Forward-Looking Twist

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To sum up, here's the list of criteria I used:

* Return on Invested Capital greater than 15%

* Enterprise Value to EBITDA less than 6

* Free Cash Flow to Operating Income greater than 75%

* Total Debt to Invested Capital less than 30%

* Capital Expenditures to Property, Plant, and Equipment greater than 30%

And here are the dozen stocks that resulted from this screen (using data available as of Feb. 27, 2009):


  Quantitative Stock Screen

Company Symbol Market Cap ($mil) ROIC EV/EBITDA FCF to Oper. Income TD/EBITDA Capex to PP&E
Autodesk ADSK 2,872 30% 3.2 124% 6.7% 75%
Robert Half International RHI 2,326 24% 4.0 90% 0.7% 49%
T. Rowe Price Group TROW 5,820 20% 5.7 87% 0.0% 36%
Adobe Systems ADBE 8,754 19% 5.3 110% 28.2% 36%
EZCORP EZPW 467 18% 5.2 87% 11.2% 41%
QLogic QLGC 1,118 16% 3.3 98% 0.0% 31%

Sapient SAPE 488 15% 4.9 122% 0.0% 55%
Comfort Systems USA FIX 368 16% 3.4 126% 13.1% 47%
Accenture ACN 17,729 77% 4.8 96% 0.2% 38%
NeuStar NSR 1,221 18% 5.3 87% 9.1% 40%
Net 1 UEPS Technologies UEPS 806 23% 5.7 94% 26.1% 71%
Teradata TDC 2,721 36% 5.9 117% 0.0% 39%


Tortoriello is an analyst for Standard & Poor's Equity Research Services. He is the author of Quantitative Strategies for Achieving Alpha, published by McGraw-Hill in November, 2008.

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