I am looking to make a trade in Wal-Mart – hopefully today, just need a large Margin of Safety. It is passing both my Stocks to Own Screen and 52 Week Low Screen – so, it is becoming a no brainer. This is a case of buying a good company at a great stock valuation – my only hesitency is that I don’t shop at Wal-Mart. I prefer to buy on-line with Amazon (a great company, very bad stock valuation):
| Name | Ticker | Price | Fair Value | Margin of Safety | Yield % | MOS % |
| Wal-Mart Stores Inc | WMT | $58.10 | $75.00 | $16.90 | 3.32 | 22.53% |
Based on the following screen:
- Morningstar analysis available.
- Less than 5% above its 52 week low.
- Greater than or equal to Narrow moat.
- Free cash flow/enterprise value greater than 5% (should be above what the 10 Year Treasury Bond is yielding).
- Financial Health Grade >= B.
- Forward P/E <= 20.
- Stock Industry not = Asset Management
- Dividend Yield % >= 2.5
- For candidates that have passed all the filters, review the individual stocks Return on Invested Capital (ROIC) for the previous 10 years to select the best long term candidates.
Leave a Reply