Stock Screening

The system employs two primary screening strategies: Value Portfolio and Dividend Portfolio. Each strategy uses a multi-layered approach combining fundamental data, analyst sentiment, and historical stability.

Value Portfolio Screening Criteria This strategy focuses on high-quality companies with strong fundamentals and positive analyst sentiment.

Core Scoring Metrics (Jitta) The fundamental score evaluates three key categories with specific weights:

Liquidity (20%): Current Ratio, Quick Ratio, Debt-to-Equity, Working Capital, Free Cashflows. Profitability (40%): Net Income growth, Gross/Operating/Net Margins. Efficiency (40%): ROA, ROE, SG&A to Sales, Asset/Inventory Turnover. Note: Financial sector stocks use specialized metrics like Loan-to-Deposit, NIM, and Loan Loss Provisions. Dividend Portfolio Screening Criteria This strategy identifies stable, high-yield stocks that generate consistent cash flow. A stock must pass all 8 conditions to be considered:

High Yield: Average Dividend Yield over the last 5 years must be > 5%.

Dividend Growth: 5-year Dividend CAGR must be positive (> 0).

Positive Free Cashflow: Free Cashflows (FCF) must be positive for every year in the database.

Operational Cashflow: Cash from Operating Activities (CFO) must be positive for every year.

Low Debt: 10-year average Debt-to-Equity (D/E) Ratio must be < 1.5x.

Payment Consistency: Dividends must have been paid every single year.

Net Income Stability: Net Income must be positive for every year.

Earnings Quality: CFO must be greater than or equal to Net Income for every year (ensuring profits are backed by cash).

Final Filter: The expected dividend yield for the latest year (based on current price and the most recent payouts from Settrade) must be ≥ 5%.

Summary of Screening Logic per Metric For every fundamental metric, the system performs four health checks:

CAGR Check: Is the 5-year compound growth positive? Average Check: Is the current value better than its 5-year average? 3rd/2nd Year Trend: Has the metric improved consistently over the last 2 or 3 years?