Fifty stocks with poor fundamentals you would rather avoid

Posted on by investing-scientist

Here’s my selection of fifty stocks that scored lowest in my screening – for details see below. Briefly, for each stock from NYSE and NASDAQ for areas were assessed: Valuation (V), Profitability (P), Growth (G) and Health (H); then, the overall score (here: Score) was calculated and what you see below is an ordered list of worst scoring stocks.

A listing of top 50 stocks is available there.

Enjoy and don’t forget to leave a comment!

# Ticker Total V P G H Sector Industry
1 CLW 30.43 44.64 37.5 31.25 8.33 Process Industries Pulp & Paper
2 LPTH 29.93 23.57 22.06 16.23 57.84 Electronic Technology Electronic Components
3 WBT 29.91 25.48 47.91 27.5 18.74 Producer Manufacturing Industrial Machinery
4 ADNT 29.89 30.76 35.78 42.86 10.15 Producer Manufacturing Auto Parts: OEM
5 CHX 29.77 27.21 27.31 33.5 31.06 Process Industries Chemicals: Specialty
6 NI 29.74 24.14 11.89 35.88 47.06 Utilities Gas Distributors
7 NEE 29.44 4.81 52.28 33.45 27.22 Utilities Electric Utilities
8 USX 29.41 78.59 20.9 12.03 6.13 Transportation Trucking
9 WSC 29.31 18.06 34.06 28.03 37.1 Finance Finance/Rental/Leasing
10 GHM 29.28 47.44 17.3 18.09 34.3 Producer Manufacturing Industrial Machinery
11 BBBY 29.27 32.62 13.36 24.11 47.01 Retail Trade Specialty Stores
12 TOL 29.0 32.72 21.38 41.78 20.13 Consumer Durables Homebuilding
13 EXTR 28.5 17.47 38.36 47.05 11.11 Electronic Technology Computer Peripherals
14 NWSA 28.48 18.89 39.68 26.79 28.57 Consumer Services Publishing: Newspapers
15 RCMT 28.32 24.31 27.75 22.19 39.05 Industrial Services Engineering & Construction
16 XPO 28.29 19.66 24.31 58.34 10.83 Transportation Trucking
17 GPK 28.27 54.47 22.07 21.28 15.28 Process Industries Containers/Packaging
18 AVTR 28.25 9.37 52.56 39.02 12.04 Process Industries Chemicals: Specialty
19 FND 28.12 16.67 33.33 12.5 50.0 Retail Trade Home Improvement Chains
20 GRPN 27.99 11.27 47.47 47.7 5.51 Commercial Services Advertising/Marketing Services
21 CLAR 27.83 18.76 19.68 14.55 58.33 Consumer Durables Recreational Products
22 IQV 27.75 8.93 37.5 56.25 8.33 Health Services Services to the Health Industry
23 MO 27.64 20.0 55.56 35.0 0.0 Consumer Non-Durables Tobacco
24 TPIC 27.31 11.02 37.74 43.58 16.89 Producer Manufacturing Electrical Products
25 MG 27.25 39.11 24.75 32.76 12.38 Industrial Services Engineering & Construction
26 MCO 27.08 33.33 16.67 25.0 33.33 Commercial Services Financial Publishing/Services
27 CVGW 27.06 16.76 27.46 21.52 42.51 Consumer Non-Durables Food: Specialty/Candy
28 ENR 27.05 31.48 23.39 26.64 26.67 Consumer Non-Durables Household/Personal Care
29 TREX 26.79 0.0 45.24 14.29 47.62 Non-Energy Minerals Forest Products
30 HL 26.18 28.42 30.68 22.27 23.33 Non-Energy Minerals Precious Metals
31 BBW 25.36 34.37 17.61 12.5 36.98 Retail Trade Specialty Stores
32 TSQ 24.98 12.1 32.49 52.41 2.9 Consumer Services Broadcasting
33 CULP 24.66 44.45 0.0 12.5 41.67 Process Industries Textiles
34 CENT 24.3 11.11 44.44 25.0 16.67 Consumer Non-Durables Consumer Sundries
35 DIS 24.0 7.14 13.33 33.33 42.22 Consumer Services Cable/Satellite TV
36 MNRO 23.09 25.56 19.4 28.57 18.82 Retail Trade Specialty Stores
37 SPGI 22.92 16.67 33.33 25.0 16.67 Commercial Services Financial Publishing/Services
38 MNTX 22.83 24.08 25.43 14.32 27.49 Producer Manufacturing Trucks/Construction/Farm Machinery
39 SSTI 22.15 4.48 28.32 26.16 29.63 Electronic Technology Aerospace & Defense
40 PSMT 21.67 40.0 0.0 0.0 46.67 Retail Trade Discount Stores
41 PBI 20.84 14.29 38.1 7.14 23.81 Producer Manufacturing Office Equipment/Supplies
42 SRLP 20.26 5.04 38.72 14.06 23.23 Industrial Services Oil & Gas Pipelines
43 GT 20.14 55.56 11.11 8.34 5.56 Consumer Durables Automotive Aftermarket
44 ARKO 18.86 15.6 2.56 3.85 53.42 Retail Trade Food Retail
45 GWRS 18.52 6.06 14.39 9.16 44.45 Utilities Water Utilities
46 KSU 17.86 14.29 4.76 28.57 23.81 Transportation Railroads
47 JW.A 17.08 8.33 26.67 20.0 13.33 Consumer Services Publishing: Books/Magazines
48 JW.B 16.67 6.67 26.67 20.0 13.33 Consumer Services Publishing: Books/Magazines
49 SWK 15.27 0.0 33.33 16.66 11.11 Consumer Durables Tools & Hardware
50 JELD 14.98 25.4 9.53 15.48 9.53 Non-Energy Minerals Forest Products

Methodology

For each stock from NASDAQ and NYSE scores are calculated for each of the following areas:

  • Valuation
  • Profitability
  • Growth
  • Health

The scores are calculated using the indicators shown in colored boxes above. For instance, to assess stock’s profitability, Return on Assets (ROA), Return on Equity (ROE) and Net Margin are taken into account. The algorithm looks up the value of ROA in every stock belonging to the same industry and compares it against the analyzed stock, providing a final rank: if there are 20 stocks and 5 of them have higher ROA, then the ROA-associated score is (20-5)/20 * 100 = 75, meaning that the ROA is better than in 75% of stocks. We want ROA to be higher than in the other companies; sometimes, however, we want the indicator’s value to be lower than in peers, as is the case with Price to Book ratio (P/B).

In the next step, the mean score across ROA, ROE and Net Margin is calculated. Similar calculations are done for stock’s Valuation, Growth and Health. The algorithm starts with Valuation score, then it proceeds with Profitability, Growth and Health scores. Finally, the mean value across all four areas of interest are calculated.

 

Disclaimers

  • What you see here is my personal opinion and should not be treated as an investing advice
  • I’m not an expert stock analyst nor financial advisor

 

Michał, the Investing Scientist.