Strong fundamental but undervalued

Screening Filters & Rationale

1. Market Cap ≥ $1 billion:

   • Purpose: Focus on established companies with significant market presence.
   • Rationale: Larger companies tend to have more stable fundamentals and lower risk compared to smaller-cap stocks.

2. Gross Margin ≥ 35%:

   • Purpose: Identify companies with strong profitability and efficient cost management.
   • Rationale: High gross margins indicate a company's ability to generate profit from its core operations.

3. Debt-to-Equity ≤ 0.8:

   • Purpose: Select companies with manageable debt levels.
   • Rationale: Lower debt-to-equity ratios suggest financial stability and reduced risk of insolvency.

4. P/E (TTM) ≤ 20:

   • Purpose: Find undervalued stocks relative to their earnings.
   • Rationale: A low price-to-earnings ratio indicates potential undervaluation compared to industry peers.

5. Return on Equity ≥ 12%:

   • Purpose: Focus on companies delivering strong returns to shareholders.
   • Rationale: High ROE reflects efficient use of equity capital to generate profits.