How to screen stocks? There are more than 3,800 A-shares, so we have no energy when choosing stocks, and it is impossible for every company to study and analyze them carefully. Do we know which ones? The following are several indexes of stock selection methods compiled by Bian Xiao, which are for reference only and hope to be helpful to everyone.
What are the methods for screening stocks?
1, whether the operating income and net profit show a steady growth trend. I chose a ten-year time period, because only a long time can smooth out the impact of economic cycles or accidents and reflect the development trend of performance. Occasionally, a year's decline can be tolerated, but if the time is good, the company will be poor or even lose money, and the turning point of the cycle is too difficult to grasp, which is beyond my consideration.
2. The annual return on equity is generally not less than 10%. A company that can meet this standard has a stable and ideal shareholder return, which means that the company has a competitive advantage to some extent. It should be noted that the term used here is generally not less than, that is, the return on equity in occasional years is slightly lower, just close to 10%, for example, 8% and 9% can also be considered as standards. Some people may say that it is better to have a ROE of not less than 15% or even 20%, but companies that maintain such a high ROE for a long time are all water chestnut, and the price is usually not cheap, so they can't buy it at any time. If the standard is too high, you will often be in an awkward position with no shares to buy. Of course, if the stock with high ROE for a long time has a good price, it must attract enough attention and attention, because it is very possible.
3. The net operating cash flow is abundant. My standard is that the accumulated net operating cash flow in the past ten years can completely cover the accumulated net profit. It is best that the net operating cash flow of each year is higher than the net profit of that year. Such companies have high quality profits, and the profits they earn are mainly real money, not paper wealth. While strictly observing the cash flow, we can often avoid some unnecessary troubles (the cash flow of Thunderstorm shares is almost bad this year).
4. Whether the level of asset-liability ratio is reasonable. Except monopoly public utilities in the financial industry and a few state-owned enterprises, I tend to choose companies with low debt ratio or low interest-bearing debt ratio. The asset-liability ratio below 50% is reasonable, and the lower the interest-bearing debt, the better. Too high leverage coefficient means that there may be too many unknown risks, which puts heavy shackles on the company's interests and is prone to problems when the economy or industry goes down, while companies with light debts are more likely to tide over the difficulties in difficult times.
Several indexes for screening stocks
There are more than 3,800 A-share stocks, so we have no energy when choosing stocks, and it is impossible for every company to study and analyze them carefully. We only need a few simple indicators to filter out most poor companies.
1, whether the operating income and net profit show a steady growth trend. I chose a ten-year time period, because only a long time can smooth out the impact of economic cycles or accidents and reflect the development trend of performance. Occasionally, a year's decline can be tolerated, but if the time is good, the company will be poor or even lose money, and the turning point of the cycle is too difficult to grasp, which is beyond my consideration.
2. The annual return on equity is generally not less than 10%. A company that can meet this standard has a stable and ideal shareholder return, which means that the company has a competitive advantage to some extent. It should be noted that the term used here is generally not less than, that is, the return on equity in occasional years is slightly lower, just close to 10%, for example, 8% and 9% can also be considered as standards. Some people may say that it is better to have a ROE of not less than 15% or even 20%, but companies that maintain such a high ROE for a long time are all water chestnut, and the price is usually not cheap, so they can't buy it at any time. If the standard is too high, you will often be in an awkward position with no shares to buy. Of course, if the stock with high ROE for a long time has a good price, it must attract enough attention and attention, because it is very possible.
3. The net operating cash flow is abundant. My standard is that the accumulated net operating cash flow in the past ten years can completely cover the accumulated net profit. It is best that the net operating cash flow of each year is higher than the net profit of that year. Such companies have high quality profits, and the profits they earn are mainly real money, not paper wealth. While strictly observing the cash flow, we can often avoid some unnecessary troubles (the cash flow of Thunderstorm shares is almost bad this year).
4. Whether the level of asset-liability ratio is reasonable. Except monopoly public utilities in the financial industry and a few state-owned enterprises, I tend to choose companies with low debt ratio or low interest-bearing debt ratio. The asset-liability ratio below 50% is reasonable, and the lower the interest-bearing debt, the better. Too high leverage coefficient means that there may be too many unknown risks, which puts heavy shackles on the company's interests and is prone to problems when the economy or industry goes down, while companies with light debts are more likely to tide over the difficulties in difficult times.
How to screen self-selected stocks
1. The total number of issued shares held by the institution shall not be less than 30% of the existing issued shares (the shareholding ratio of the institution shall not be higher than 30%).
In the stock market, if you want to do a good job in the medium and long term, the most important thing is to inspect listed companies, but this is an unattainable thing for small and medium-sized retail investors. Therefore, if only some institutions buy stocks in large quantities, it is equivalent to these institutions providing us with a free feasibility report on buying this listed company. If it is found that there are more gold medal funds in the organization, it will undoubtedly increase the credibility of this report. This is also one of the skills of getting started in stock trading.
Two, the average gross profit margin of listed companies in the last three years is not less than 40%. (3-year gross profit margin exceeds 40%)
The high gross profit margin shows that the company has obvious competitive advantages in the whole industry. It is likely that the company has core technology, strong brand position and strong product pricing ability, and is in a monopoly position in the market. The higher the gross profit margin, the more conducive to the sustained growth of the company's profits. It should be mentioned here that commercial listed companies are not suitable for the standard of 40% gross profit margin because of the particularity of their business.
Three. The company's compound annual growth rate in the last three years is not less than 50%. (3-year compound growth rate is greater than 50%)
Microsoft's share price once rose by more than 6.5438+10,000 times, Sony's share price once rose by 30,000 times, and Dell's share price once rose by nearly 9,000 times in 654.38+ 00. Behind these international super bull stocks is a high compound annual growth rate. The model we can find in Shanghai and Shenzhen stock markets is Suning, whose share price has risen more than 40 times in more than three years, and the compound annual growth rate in the past three years is close to 90%. It should also be noted that listed companies with small annual growth rate fluctuations should be selected as far as possible. If a company has zero growth rate in the last three years and two years, and the annual growth rate exceeds 500%, although the compound annual growth rate exceeds 140%, it is not an ideal choice.