Visual Discovery 03/28/18

Visualizing over 5,300 stocks using the Magic Formula within a scatter plot for companies less than 2 billion.

The X-Axis represents EV/EBIT as a measure of “cheap companies”. The Y-axis attempts to rank “good companies” using the average ROIC over the past 4 years. If your search is only cheap companies. Just focus on the X (EV/EBIT) and ignore or filter out the Y (ROIC) measure. 

The upper left quadrant clusters good companies (high ROIC) and cheap companies (low EV/EBIT) and with the same color. The lower left is cheap companies but not as “good” (high ROIC) as the upper left quad.

Plug and play to find companies reducing shares outstanding from 2015 to the MRQ (% Chg Shrs Outs 2015 vs MRQ) or total liabilities(Ttl LIAB MRQ % Chg vs 2015). Further, you can modify Industry, financial strength, revenue growth, exchange or market size.

Note the default filter is currently set where both EV/EBIT (Cheapness) and ROIC (Goodness)  greater than zero. Bubble size is determined by the % off its 52 week high. Updated (03/30/18) the tool tooltip too contain additional decision-making data. See the new measures by hovering over a bubble. Additional improvements to be added.