Financial asset recommendation

Screening Filters

1. Market Cap ≥ $10B (market_cap: {'min': '10000000000'})

   • Purpose: Focus on larger, more established companies.
   • Rationale:
     • When someone asks for “financial assets for investment,” it typically implies a preference for relatively stable, less speculative names.
     • Large-cap companies tend to have more diversified businesses, stronger balance sheets, better liquidity, and more analyst coverage, which can reduce idiosyncratic risk compared with small, thinly traded stocks.

2. Return on Equity ≥ 10% (return_on_equity: {'min': '10'})

   • Purpose: Ensure the companies are efficiently generating profits from shareholders’ capital.
   • Rationale:
     • ROE is a key quality and profitability metric. A threshold of 10% screens out low-quality or chronically unprofitable businesses.
     • For long‑term investors, consistently solid ROE often correlates with durable competitive advantages and better capital allocation.

3. Debt-to-Equity ≤ 1.5 (debt_equity: {'max': '1.5'})

   • Purpose: Limit balance-sheet risk by avoiding excessively leveraged companies.
   • Rationale:
     • High debt can amplify downside risk, especially in recessions or rising-rate environments.
     • A cap of 1.5 keeps leverage at a moderate level, aiming to include firms that use debt prudently without being overly dependent on borrowing to sustain operations or growth.

4. 5-Year Revenue CAGR ≥ 5% (revenue_5yr_cagr: {'min': '5'})

   • Purpose: Target businesses with a demonstrated track record of growth.
   • Rationale:
     • For investment, you usually want not just stable companies but those whose top line is actually expanding over time.
     • A minimum 5% compound annual growth rate over five years filters out stagnant or declining businesses and focuses on firms growing at least modestly above inflation in many markets.

5. P/E (TTM) between 10 and 30 (pe_ttm: {'min': '10', 'max': '30'})

   • Purpose: Avoid both extremely cheap (often distressed) and extremely expensive (potentially overhyped) stocks.
   • Rationale:
     • A P/E below 10 can indicate a value opportunity, but it can also signal serious business problems or cyclicality; setting a floor helps avoid the worst “value traps” in an automated screen.
     • A P/E above 30 tends to capture highly speculative or very richly valued growth stocks where expectations are already very high; the upper bound keeps you in a more “reasonable valuation” zone for core investments.

Why Results Match Your Request

• The filters as a whole are aligned with core, investable-quality stocks rather than speculative trades: large, profitable, growing companies with manageable debt and non‑extreme valuations.
• This profile suits someone asking for financial assets for investment—it tilts toward stability and quality with reasonable growth, which is typically what long‑term investors look for when building a portfolio.