Magic Recipe Spell

Highly Efficient Companies at Low Valuations
blue wand

In this spell, we take all non-financial and utility stocks with an over $1 billion market cap and rank them according to their earnings yield and return on tangible capital, taking the top 50 from the results. The resulting list gives us the stocks with the best combinations of a low valuation (earnings yield) and high quality (return on capital).

The Magic Recipe Spell was inspired by Joel Greenblatt's Magic Formula Investing strategy, and its construction is quite similar. As always, members can modify it to your liking using the Spell Caster tool!

Results for 2017-12-12

Columns are sortable. New entries have blue pip at left and are bold text.

Ticker Company Price MktCap EY ROIC 3YG Rating Rank
GILD Gilead Sciences, Inc. $76.09 100,363 21.4% -214.5% 48.4% gray dot 1
UTHR United Therapeutics Corporation $135.22 5,963 21.9% 107.8% 12.7% gray dot 2
IDCC InterDigital, Inc. $75.65 2,677 18.5% 178.6% 28.3% gray dot 3
BKE Buckle, Inc. $22.10 1,068 16.3% 58.5% -4.5% gray dot 4
TARO Taro Pharmaceutical Industries Ltd. $105.99 4,273 14.5% 60.9% 5.4% 5
MIK Michaels Companies Inc $21.63 3,936 10.9% 80.0% 4.4% gray dot 6
OCLR Oclaro, Inc. $7.07 1,208 14.2% 46.5% 18.1% 7
MSGN MSG Networks Inc. Class A $19.60 1,485 12.1% 218.2% -17.5% 8
SYNT Syntel, Inc $25.29 2,113 9.6% 94.4% 5.5% 9
MSTR MicroStrategy Incorporated Class A $132.36 1,522 9.5% 117.2% -3.8% gray dot 10
FL Foot Locker, Inc. $44.57 5,634 17.3% 39.4% 6.1% gray dot 11
SAFM Sanderson Farms, Inc. $167.00 3,741 12.9% 39.3% 1.6% 12
HRB H&R Block, Inc. $27.54 5,758 9.8% 189.5% 0.1% gray dot 13
BBY Best Buy Co., Inc. $63.52 19,399 10.1% 53.5% -2.4% gray dot 14
KLIC Kulicke & Soffa Industries, Inc. $24.00 1,730 12.1% 56.9% 13.4% 14
KLAC KLA-Tencor Corporation $103.06 16,268 8.7% 131.8% 6.3% 15
CRUS Cirrus Logic, Inc. $50.39 3,344 11.2% 65.8% 29.2% gray dot 16
LPX Louisiana-Pacific Corporation $26.52 3,885 12.4% 36.5% 2.9% 17
USNA USANA Health Sciences, Inc. $70.80 1,741 8.7% 90.4% 11.9% 18
GNTX Gentex Corporation $20.52 5,890 10.1% 72.3% 12.8% gray dot 19
KORS Michael Kors Holdings Ltd $61.12 9,423 9.4% 65.4% 11.7% gray dot 20
OSB Norbord Inc. $32.59 2,832 14.5% 31.5% 10.7% 20
SBH Sally Beauty Holdings, Inc. $16.37 2,229 12.5% 51.0% 2.6% gray dot 21
TJX TJX Companies Inc $73.62 47,329 8.4% 73.1% 6.6% gray dot 22
UPL Ultra Petroleum Corp. $9.12 1,791 10.4% 34.6% -4.7% 23
DLPH Delphi Automotive PLC $50.68 13,540 13.6% 45.8% 0.8% 24
LEA Lear Corporation $176.35 12,139 12.0% 42.3% 4.6% 24
AEO American Eagle Outfitters, Inc. $17.19 3,079 11.1% 33.8% 3.0% gray dot 25
LYB LyondellBasell Industries NV $106.99 42,261 11.2% 33.8% -11.9% 25
WSM Williams-Sonoma, Inc. $50.90 4,346 10.8% 31.7% 5.1% gray dot 26
GPS Gap, Inc. $33.96 13,346 10.0% 33.6% -1.3% gray dot 27
TNH Terra Nitrogen Company, L.P. $81.99 1,517 8.2% 60.5% -16.8% 28
VVV Valvoline Inc. $24.52 4,978 8.7% 53.4% 0.8% 29
CYD China Yuchai International Limited $24.80 1,010 25.1% 25.8% -6.9% 30
HPQ HP Inc. $20.98 35,393 9.1% 66.4% -17.7% 31
RHI Robert Half International Inc. $54.36 6,752 7.9% 79.9% 7.4% 31
AZO AutoZone, Inc. $711.05 20,211 8.2% 51.4% 4.8% 32
GBX Greenbrier Companies, Inc. $50.90 1,661 14.4% 27.7% 0.8% 33
AHGP Alliance Holdings GP, L.P. $24.90 1,491 11.3% 30.0% -4.0% 34
EGOV NIC Inc. $18.25 1,209 7.3% 602.2% 8.4% 35
CLF Cleveland-Cliffs Inc $6.67 2,008 10.1% 30.4% -26.0% 35
DORM Dorman Products, Inc. $63.72 2,161 8.8% 36.8% 9.0% 36
BBBY Bed Bath & Beyond Inc. $23.18 3,250 22.9% 27.2% 2.0% gray dot 37
LRCX Lam Research Corporation $181.57 33,387 7.7% 119.1% 20.8% 38
AEIS Advanced Energy Industries, Inc. $69.03 2,773 7.5% 104.9% -1.9% 38
INVA Innoviva, Inc. $13.43 1,609 7.5% 254.8% 225.0% 39
AAPL Apple Inc. $171.70 890,021 7.4% 92.2% 8.6% gray dot 40
CBM Cambrex Corporation $49.70 1,666 9.4% 33.1% 15.5% 41
FFIV F5 Networks, Inc. $135.49 8,596 7.4% 249.9% 6.5% 42
SWKS Skyworks Solutions, Inc. $96.47 17,914 7.7% 77.4% 18.1% gray dot 43