Last Updated on Apr 6, 2021 by Aradhana Gotur
With over 3,000 stocks listed on NSE, deciding which ones to invest in can be challenging. One of the easy ways to find stocks to invest in is to filter them using certain parameters. A short-term investor would prefer technical indicators, whereas a long-term investor would want to judge a company by its business profitability metrics.
For either type, the more ready-made options one has for filtering, the better. That is why, Tickertape’s Screener is built with over 200 filters, that help you get near-perfect results. However, we didn’t stop there. Tickertape persuasively strives to provide a better stock-screening experience to you, which is why we have added an array of new filters.
Table of Contents
We have added 46 new filters across various categories such as profitability, ownership, price-volume, broker ratings, technical indicators, and so on. Try these filters on Screener now.
Below are the new category-wise additions:
These are combinations of balance sheet and income statement metrics intelligently divided, multiplied or averaged with each other to tell a story that the absolute numbers don’t convey. Under this category, the new filters are:
|Inventory Turnover Ratio||Cost of good sold of a company divided by average inventory over the past 2 financial years|
|Asset Turnover Ratio||Total revenue of a company divided by average total assets over the past 2 financial years|
|Days of Inventory Outstanding||Average number of days a company holds inventory before turning it into sales|
|Days of Sales Outstanding||Average number of days a company takes to realise payment of a sale|
|Days Payable Outstanding||Average number of days a company takes to make payments to its trade creditors.|
|Working Capital Turnover Ratio||Total revenue of a company divided by average working capital over the past 2 financial years|
|Net Income / Liabilities||Net income divided by total liabilities for the most recent financial year|
|Earning Power||EBIT divided by total assets for the most recent financial year|
The significant additions in this category are the ‘Days’ ratios. They are different compared to other financial ratios since they give a time-based perspective to the company’s fundamentals. One tells how quickly a company moves it’s inventory around and converts it to sales while the other two convey how well it manages the financing of its costs and revenue. At a broad level, these filters tell about the overall health of the company by shedding light on the utilization of resources, supply chain efficiency and performance of the business.
This category of filters mostly deals with analyst estimates and forecasts about the performance of a stock. We’ve just added one new filter in this category:
|No. of analysts with buy reco||Sum of analysts having a strong buy/buy rating for the stock|
We already had % buy/sell recommendations as filters. However, most of our users wanted to know the exact number of analysts as well, just to get an idea of how many experts are actually covering the stock. With over a sea of stocks out in the market, this filter clubbed with other screens can help you in choosing the right stock to invest in. It gives you a second opinion on your stock picks, that too from experts in the industry.
The metrics within this category help us in knowing the major stakeholders and their impact on the company’s shareholding. Under this category, we have added:
|Insurance Firms Holding||Percentage of company’s common stock held by insurance firms|
|Retail Investor Holding||Percentage of company’s common stock held by retail investors|
|Insider Trades – 1M Cumulative||Cumulative number of shares traded by insiders of the company over the previous 1 month as a % of total shares outstanding|
|Insider Trades – 3M Cumulative||Cumulative number of shares traded by insiders of the company over the previous 3 months as a % of total shares outstanding|
|Insider Trades – 6M Cumulative||Cumulative number of shares traded by insiders of the company over the previous 6 months as a % of total shares outstanding|
|Bulk Deals – 1M Cumulative||Cumulative number of shares traded under bulk deals over the previous 1 month as a % of total shares outstanding|
|Bulk Deals – 3M Cumulative||Cumulative number of shares traded under bulk deals over the previous 3 months as a % of total shares outstanding|
|Bulk Deals – 6M Cumulative||Cumulative number of shares traded under bulk deals over the previous 6 months as a % of total shares outstanding|
|No. of Shareholders||No. of unique DEMAT accounts with at least one share of the stock in their portfolio|
In sync with the changes, we made in the stock page, wherein we added % Retail Investor Holding and Insurance Firms Holding in the shareholding graph, we have added those 2 as independent screener filters as well. Similarly, like we have introduced bulk/block deal trends in the stock page, we’ve added relevant historical metrics from those graphs as filters too. Head to learn section to understand how these values are exactly calculated.
A number of shareholders of a particular stock are also added as a screener filter. This helps you gauge the popularity of the stocks, or rather gives a sense of popularity since a high value indicates many unique DEMAT accounts holding the stocks.
Price and Volume:
These are data points based on the price movements of stocks. Not exactly like technical indicators, but rather metrics that give a sense of price movements in the slightly longer timeframes, so you can judge how well the share price is correlating with the fundamentals.
|Face value||Original cost of the stock as decided by the company at the time of issue|
|5Y CAGR||Compounded annual growth rate of stock price over previous 5 years|
The 5 yr CAGR is a popular metric that was requested by most of our users. This newly added data point gives you a compounded growth rate as a filter between various stocks. It tells if you bought and held a stock for the last 5 years and never invested more or withdrew any profits, this would have been your y-o-y return. Face value on the other hand does not have much utility when viewed standalone, but this metric clubbed with other data points in a custom filter can be of an advantage to you.
The data points within these categories help you in understanding how good the margins of a business are. These don’t tell much about the scale/nature of the business or it’s supply chain but rather answer the basic questions well, like, is the business cash-rich? Is the business EBITDA positive?
|Cost of Goods Sold||Refers to the direct cost of producing goods sold by the company. This usually includes raw material and labour cost expended to produce the goods|
|Cash Flow Margin||Cash from operations divided by total revenue for the most recent financial year|
|5Y Avg Cash Flow Margin||Average of annual cash flow margin for the 5 most recent financial years|
|ROCE||Return on Capital Employed. EBIT divided by capital employed, ie total assets minus total current liabilities for the most recent financial year|
In addition to the Cost of Goods Sold and Cash Flow Margin, we have also included Return on capital employed (ROCE), something that our users had been requesting for a long time. ROCE defines how efficiently a company uses its resources to generate income (not revenue). The higher the ratio, the better it is.
These are pattern-based indicators that are mostly used for technical analysis. These are the new filters that are added within this category:
|10D EMA||Exponential moving average of the price over last 10 trading days|
|10D SMA||Simple moving average of the price over last 10 trading days|
|50D EMA||Exponential moving average of the price over last 50 trading days|
|50D SMA||Simple moving average of the price over last 50 trading days|
|100D EMA||Exponential moving average of the price over last 100 trading days|
|200D EMA||Exponential moving average of the price over last 200 trading days|
|100D SMA||Simple moving average of the price over last 100 trading days|
|200D SMA||Simple moving average of the price over last 200 trading days|
|1Y Max Loss||Indicates the maximum fall in the value of the investment over the previous 1 year; measured as the percentage change between the lowest point and the highest point before the lowest point.|
1 yr max loss basically tells you the return you would have made if you bought and sold at the worst times in the past year i.e bought at high, sold at low. When investing in a share, this metric can give an idea of the worst possible case in a year’s time frame, so you can plan accordingly.
Secondly, we’ve added different periods – Simple and Exponential Moving Averages across 10, 50, 100 and 200 day time frames. Comparing average closing prices of different stocks doesn’t tell much though, since the absolute stock price can be anything, and irrelevant to how good the company is at its core. But it’s recommended that you view these as just smoothened versions of price data, which you can use in custom filters to reduce noise, especially in valuation-related metrics.
The metrics which relate a company’s market value or investor perception with its core business are grouped within the valuation category. New additions here are:
|Enterprise Value||Sum of a company’s latest market cap, total debt and minority interest less cash short term investment at the end of the most recent financial year|
|EV / EBIT Ratio||Current Enterprise Value divided by the EBIT at the end of the most recent financial year|
|EV / Revenue Ratio||Current Enterprise Value divided by the total revenue at the end of the most recent financial year|
|EV / Invested Capital||Enterprise Value divided by invested capital of the last financial year|
|EV / Free Cash Flow||Compares the total valuation of the company with it’s ability to generate free cash flow|
|Price / Free Cash Flow||Market capitalisation of the company divided by free cash flow for the most recent financial year|
|Price / CFO||Market capitalisation of the company divided by cashflow from operations for the most recent financial year|
|Price / Sales||Market cap of the stock divided by total revenue for the most recent financial year|
|PE Premium vs Sub-sector||Stock PE ratio divided by the corresponding sub-sector PE ratio minus one|
|PB Premium vs Sub-sector||Stock PB ratio divided by the corresponding sub-sector PB ratio minus one|
|PS Premium vs Sub-sector||Stock PS ratio divided by the corresponding sub-sector PS ratio minus one|
|Dividend Yield vs Sub-sector||Difference between the dividend yield of company and the corresponding sub-sector|
Broadly, the additions with this category are Enterprise Value and related multiples and the second are Premium vs Sub-sector.
EV is considered a more comprehensive metric for valuation compared to raw market capitalisation. EV gives an idea of how much a company would be sold for in case of an acquisition. There are small caveats here like a stock market shareholder isn’t personally liable to repay debts of the company, but an acquirer might be, hence, EV is considered a more accurate measure.
We already had Premiums vs Sector as screener filters. However, the sector is sometimes way too broad a universe. There are circumstances where you cannot compare a bank’s PE and an NBFC’s PE, but both belong to the financials sector. The basis of these ratios is to help solve this.
So head over to Screener to start using these new filters today!
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