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 PFGC 30.32 24.29 33.33 43.65 20.0 Distribution Services Food Distributors
2 BLL 30.28 3.33 56.69 50.0 11.11 Process Industries Containers/Packaging
3 LPTH 30.23 24.09 23.6 17.69 55.56 Electronic Technology Electronic Components
4 NWN 29.9 48.75 29.17 25.0 16.67 Utilities Gas Distributors
5 CHX 29.59 28.18 27.76 33.05 29.35 Process Industries Chemicals: Specialty
6 WBT 29.57 27.1 46.77 27.05 17.36 Producer Manufacturing Industrial Machinery
7 CAPL 29.55 41.18 46.23 30.8 0.0 Distribution Services Wholesale Distributors
8 SKY 29.43 7.25 41.54 15.17 53.75 Consumer Durables Homebuilding
9 USX 29.39 76.23 21.29 13.3 6.75 Transportation Trucking
10 GPK 29.16 53.73 21.62 23.81 17.46 Process Industries Containers/Packaging
11 RCMT 29.12 23.33 31.59 25.2 36.36 Industrial Services Engineering & Construction
12 XPO 29.11 23.66 25.08 59.21 8.51 Transportation Trucking
13 BBBY 28.89 31.64 15.75 21.45 46.71 Retail Trade Specialty Stores
14 MG 28.68 39.36 28.39 34.83 12.12 Industrial Services Engineering & Construction
15 GHM 28.46 47.93 16.92 15.65 33.34 Producer Manufacturing Industrial Machinery
16 AVTR 28.29 10.6 51.9 38.89 11.76 Process Industries Chemicals: Specialty
17 SND 28.12 66.67 0.0 0.0 45.83 Non-Energy Minerals Construction Materials
18 TSQ 28.07 14.84 35.87 58.06 3.51 Consumer Services Broadcasting
19 NI 28.07 25.0 8.33 33.12 45.83 Utilities Gas Distributors
20 CLAR 27.84 18.06 18.1 13.46 61.73 Consumer Durables Recreational Products
21 WBA 27.78 27.78 25.0 50.0 8.33 Retail Trade Drugstore Chains
22 MO 27.64 20.0 55.56 35.0 0.0 Consumer Non-Durables Tobacco
23 CVGW 27.41 17.92 28.73 24.16 38.84 Consumer Non-Durables Food: Specialty/Candy
24 WSC 27.33 17.11 30.64 23.82 37.74 Finance Finance/Rental/Leasing
25 HL 27.3 16.67 34.52 33.03 25.0 Non-Energy Minerals Precious Metals
26 NEE 27.2 3.76 50.61 25.98 28.46 Utilities Electric Utilities
27 MCO 27.08 33.33 16.67 25.0 33.33 Commercial Services Financial Publishing/Services
28 ENR 26.37 29.63 23.39 27.89 24.56 Consumer Non-Durables Household/Personal Care
29 GRPN 26.09 12.88 33.29 45.59 12.59 Retail Trade Internet Retail
30 FND 24.65 11.11 33.33 12.5 41.67 Retail Trade Home Improvement Chains
31 IQV 24.25 10.32 28.57 48.57 9.53 Health Services Services to the Health Industry
32 MNRO 23.15 25.3 20.76 26.12 20.42 Retail Trade Specialty Stores
33 SPGI 22.92 16.67 33.33 25.0 16.67 Commercial Services Financial Publishing/Services
34 CENT 22.92 0.0 50.0 25.0 16.67 Consumer Non-Durables Consumer Sundries
35 TPIC 22.8 9.82 32.26 34.72 14.4 Producer Manufacturing Electrical Products
36 MNTX 22.7 24.11 23.8 14.05 28.86 Producer Manufacturing Trucks/Construction/Farm Machinery
37 JW.A 22.22 0.0 44.44 33.34 11.11 Consumer Services Publishing: Books/Magazines
38 KBAL 22.16 5.13 20.48 14.16 48.89 Consumer Durables Home Furnishings
39 DIS 21.95 11.11 10.0 20.0 46.67 Consumer Services Cable/Satellite TV
40 SSTI 21.59 4.8 29.26 24.82 27.5 Electronic Technology Aerospace & Defense
41 PBI 20.84 14.29 38.1 7.14 23.81 Producer Manufacturing Office Equipment/Supplies
42 SRLP 20.5 2.08 43.58 18.18 18.18 Industrial Services Oil & Gas Pipelines
43 GT 20.14 55.56 11.11 8.34 5.56 Consumer Durables Automotive Aftermarket
44 GWRS 19.56 6.06 14.39 13.34 44.45 Utilities Water Utilities
45 JELD 19.3 30.0 11.11 25.0 11.11 Non-Energy Minerals Forest Products
46 ARKO 18.86 15.6 2.56 3.85 53.42 Retail Trade Food Retail
47 KSU 16.66 8.33 8.33 25.0 25.0 Transportation Railroads
48 CULP 16.66 44.44 0.0 0.0 22.22 Process Industries Textiles
49 M 13.33 33.33 13.33 0.0 6.67 Retail Trade Department Stores
50 SWK 6.94 0.0 11.11 16.66 0.0 Consumer Durables Tools & Hardware

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.

 

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