Magic Formula Stock Screener
Discover high-quality stocks at fair prices using Joel Greenblatt's Magic Formula, which ranks companies on Earnings Yield and Return on Capital.
Magic Formula Rankings
Showing top-ranked stocks based on your filter. Lower Magic Formula Rank is better.
| Rank | Ticker | Company Name | Market Cap | Earnings Yield | Return on Capital | MF Rank |
|---|---|---|---|---|---|---|
| 1 | SIGA | SIGA Technologies | 500M | 12.00% | 50.00% | 5 |
| 2 | HD | The Home Depot, Inc. | 330.0B | 5.50% | 70.00% | 11 |
| 3 | TNK | Teekay Tankers Ltd. | 1.8B | 15.00% | 20.00% | 12 |
| 4 | BURL | Burlington Stores | 9.8B | 7.10% | 29.00% | 13 |
| 5 | ODFL | Old Dominion Freight Line | 9.5B | 6.80% | 33.00% | 13 |
| 6 | AAPL | Apple Inc. | 2.90T | 3.50% | 45.00% | 17 |
| 7 | NVO | Novo Nordisk A/S | 650.0B | 2.80% | 85.00% | 17 |
| 8 | FNF | Fidelity National Financial | 7.5B | 10.50% | 8.00% | 18 |
| 9 | JPM | JPMorgan Chase & Co. | 570.0B | 8.20% | 15.00% | 18 |
| 10 | DX | Dynex Capital, Inc. | 1.2B | 9.50% | 5.00% | 20 |
| 11 | UFPT | UFP Technologies | 1.9B | 6.20% | 18.00% | 20 |
| 12 | UNH | UnitedHealth Group | 450.0B | 5.10% | 22.00% | 20 |
| 13 | GOOGL | Alphabet Inc. | 2.00T | 4.50% | 28.00% | 20 |
| 14 | MSFT | Microsoft Corp. | 3.10T | 3.00% | 40.00% | 20 |
| 15 | MKTX | MarketAxess Holdings | 8.0B | 3.20% | 25.00% | 23 |
| 16 | WYNN | Wynn Resorts | 9.9B | 4.80% | 12.00% | 25 |
The Magic Formula Explained
The Magic Formula is an investment strategy developed by Joel Greenblatt, detailed in his book "The Little Book That Beats the Market." It provides a simple, quantitative approach to buying good companies at cheap prices.
It ranks companies based on two key metrics:
- Earnings Yield (Good Price): Measures how much a company earns relative to its enterprise value. A high earnings yield suggests a company might be undervalued. (Calculated as EBIT / Enterprise Value).
- Return on Capital (Good Company): Measures how effectively a company is using its capital to generate profits. A high return on capital indicates an efficient, profitable business. (Calculated as EBIT / (Net Working Capital + Net Fixed Assets)).
By combining the ranks of these two factors, the formula identifies companies that are both high-quality and attractively priced. This screener provides a simplified illustration of the concept.