Look for specific stocks that may fit

Screening Filters

1. Region: ['US']

   • Purpose: To limit the search to companies based in the United States.
   • Rationale: The user specifically requested U.S. companies, so this filter ensures that only stocks listed in the U.S. market are considered.

2. Market Cap: {'max': '500000000'}

   • Purpose: To identify microcap companies.
   • Rationale: Microcap stocks are typically defined as companies with a market capitalization below $300 million to $500 million. Setting the maximum market cap at $500 million ensures the screener focuses on smaller companies that fit the microcap category.

3. Free Cash Flow TTM: {'min': '0'}

   • Purpose: To ensure the companies have positive free cash flow over the trailing twelve months (TTM).
   • Rationale: Positive free cash flow indicates that the company generates more cash than it spends, which aligns with the user's request for "strong cash flows." This filter eliminates companies with negative cash flow, which may signal financial instability.

4. Operating Margin: {'min': '5'}

   • Purpose: To focus on companies with a minimum level of profitability.
   • Rationale: Operating margin measures how efficiently a company generates profit from its operations. A minimum threshold of 5% ensures that only companies with reasonable profitability are included, addressing the user's request for "profitability."

5. P/FCF Ratio: {'max': '20'}

   • Purpose: To identify undervalued companies based on their price-to-free-cash-flow ratio.
   • Rationale: A lower P/FCF ratio suggests that a stock may be undervalued relative to its cash flow generation. By setting a maximum of 20, the screener filters for companies that are potentially undervalued, aligning with the user's request for "undervalued" stocks.

6. Shares Outstanding: {'min': '0'}

   • Purpose: To include companies with any level of shares outstanding.
   • Rationale: While this filter does not directly control for dilution, it ensures that companies with zero shares outstanding (which would be invalid) are excluded. This filter is a baseline requirement for screening stocks.

7. Revenue 5yr CAGR: {'min': '0'}

   • Purpose: To focus on companies with non-negative revenue growth over the past five years.
   • Rationale: A positive compound annual growth rate (CAGR) in revenue indicates that the company has been growing its top line over time. This aligns with the user's preference for companies with strong fundamentals and growth potential.

Why Results Match:

• The filters collectively address the user's request for U.S.-based microcap companies with strong cash flows, profitability, and a focus on undervaluation.
• The market cap filter ensures the screener focuses on microcaps, while the free cash flow and operating margin filters prioritize companies with strong cash flow generation and profitability.
• The P/FCF ratio filter identifies undervalued stocks, and the revenue 5yr CAGR filter ensures that the companies have demonstrated growth over time.
• While the shares outstanding filter does not directly control for dilution, it ensures that valid companies are included in the results. Additional analysis of historical share issuance would be needed to fully assess dilution risk.

By combining these filters, the screener narrows down the universe of stocks to those that are most likely to meet the user's criteria.