Screening Filters
Market Cap ≥ $300M (market_cap: {'min': '300000000'})
- Purpose: Focus on established, tradeable defense companies.
- Rationale:
- Very small/micro-cap stocks can be illiquid, more volatile, and subject to large price swings that don’t reflect fundamentals.
- A $300M floor keeps the universe in the “small-cap and above” range, where financials are usually more reliable and institutional investors are active.
- For an “undervalued” screen, you generally want companies where valuation ratios are meaningful and less distorted by very thin trading.
Industry = Aerospace & Defense (industry: ['Aerospace & Defense'])
- Purpose: Restrict results to U.S.-listed defense-related companies.
- Rationale:
- “Defense stocks” typically sit in the Aerospace & Defense industry classification (e.g., weapons systems, defense electronics, military aircraft, space/defense contractors).
- This filter directly aligns the universe with your sector of interest instead of pulling in unrelated industrials or tech names.
US Major Exchanges Only (list_exchange: ['XNYS', 'XNAS', 'XASE'])
- Purpose: Limit to primary U.S. listings on major exchanges.
- Rationale:
- XNYS (NYSE), XNAS (NASDAQ), XASE (NYSE American) are the main U.S. stock exchanges.
- This matches your “US market” requirement and excludes OTC or foreign primary listings that can have different trading/ disclosure standards.
- Major exchanges also tend to have stricter listing requirements and better liquidity.
P/E (TTM) Between 0.01 and 25 (pe_ttm: {'min': '0.01', 'max': '25'})
- Purpose: Find defense stocks that are reasonably priced relative to current earnings.
- Rationale:
- Upper cap at 25: Many mature industrial/defense names trade in a mid-teens to low-20s P/E range in “normal” markets. Capping P/E at 25 aims to exclude highly expensive growth stories and focus on potentially cheaper names.
- Lower bound > 0: Requires the company to have positive earnings—otherwise P/E is negative or not meaningful. This keeps the “undervalued” logic tied to real, profitable businesses.
- Avoids ultra-low P/Es that can sometimes reflect one-off events or data errors by setting a small positive minimum (0.01).
P/B Between 0.01 and 5 (pb_ratio: {'min': '0.01', 'max': '5'})
- Purpose: Screen for companies not trading at extreme premiums to their book value (net assets).
- Rationale:
- Upper cap at 5: In capital-intensive sectors like Aerospace & Defense, a very high P/B (e.g., >5–6) can indicate an optimistic valuation relative to tangible assets, which is less consistent with “undervalued.”
- Low-to-moderate P/B levels are often associated with value opportunities, particularly where assets (plants, equipment, IP, contracts) are substantial.
- Lower bound > 0: Eliminates nonsensical or error-prone ratios; a P/B close to zero can be due to distorted or negative equity.
EV/EBITDA Between 0.01 and 14 (ev_ebitda: {'min': '0.01', 'max': '14'})
- Purpose: Target companies cheaply valued on an enterprise value to cash earnings basis.
- Rationale:
- EV/EBITDA is a widely used valuation multiple for industrial and defense names because it:
- Adjusts for capital structure (debt vs. equity).
- Focuses on operating performance before non-cash items.
- Upper cap at 14: Defense contractors and industrials often cluster in a high-single to low-teens EV/EBITDA range; keeping it ≤14 biases toward the lower or mid end of typical valuations and excludes clearly expensive outliers.
- Lower bound > 0: Excludes companies with negative EBITDA or data errors, where “cheap” might just be a sign of stress or non-viable operations.
Why Results Match Your Request
This list is generated based on data from one or more third party data providers. It is provided for informational purposes only by Intellectia.AI, and is not investment advice or a recommendation. Intellectia does not make any warranty or guarantee relating to the accuracy, timeliness or completeness of any third-party information, and the provision of this information does not constitute a recommendation.