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 2017-12-08

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. $74.22 97,896 22.1% -214.5% 48.4% gray dot 1
UTHR United Therapeutics Corporation $136.21 6,007 21.7% 107.8% 12.7% gray dot 2
IDCC InterDigital, Inc. $77.25 2,734 18.0% 178.6% 28.3% gray dot 3
TARO Taro Pharmaceutical Industries Ltd. $104.62 4,218 14.8% 60.9% 5.4% 4
BKE Buckle, Inc. $22.55 1,090 15.8% 58.5% -4.5% gray dot 5
OCLR Oclaro, Inc. $7.02 1,199 14.3% 46.5% 18.1% 6
MSGN MSG Networks Inc. Class A $19.55 1,481 12.1% 218.2% -17.5% 7
MIK Michaels Companies Inc $22.20 4,172 10.4% 80.8% 4.4% gray dot 8
SYNT Syntel, Inc $25.68 2,145 9.5% 94.4% 5.5% 9
HRB H&R Block, Inc. $27.22 5,660 10.4% 174.0% 0.1% gray dot 10
MSTR MicroStrategy Incorporated Class A $136.25 1,567 9.1% 117.2% -3.8% gray dot 11
FL Foot Locker, Inc. $44.97 5,684 17.1% 39.4% 6.1% gray dot 12
SAFM Sanderson Farms, Inc. $170.12 3,811 12.7% 39.3% 1.6% 13
KLIC Kulicke & Soffa Industries, Inc. $24.14 1,740 12.0% 56.9% 13.4% 14
BBY Best Buy Co., Inc. $63.79 19,481 10.1% 53.5% -2.4% gray dot 15
KLAC KLA-Tencor Corporation $103.98 16,413 8.6% 131.8% 6.3% 16
CRUS Cirrus Logic, Inc. $49.98 3,317 11.3% 65.8% 29.2% gray dot 17
EGOV NIC Inc. $16.35 1,083 8.3% 602.2% 8.4% 17
LPX Louisiana-Pacific Corporation $27.07 3,966 12.1% 36.5% 2.9% 18
USNA USANA Health Sciences, Inc. $70.90 1,743 8.7% 90.4% 11.9% 19
GNTX Gentex Corporation $20.44 5,867 10.2% 72.3% 12.8% gray dot 20
KORS Michael Kors Holdings Ltd $61.81 9,529 9.3% 65.4% 11.7% gray dot 21
OSB Norbord Inc. $33.13 2,879 14.3% 31.5% 10.7% 22
SBH Sally Beauty Holdings, Inc. $17.06 2,323 12.2% 51.0% 2.6% gray dot 23
UPL Ultra Petroleum Corp. $9.15 1,796 10.3% 34.6% -4.7% 24
DLPH Delphi Automotive PLC $51.00 13,625 13.6% 45.8% 0.8% 24
TJX TJX Companies Inc $73.88 47,496 8.3% 73.1% 6.6% gray dot 25
LEA Lear Corporation $177.07 12,188 12.0% 42.3% 4.6% 25
LYB LyondellBasell Industries NV $107.14 42,320 11.2% 33.8% -11.9% 26
TNH Terra Nitrogen Company, L.P. $80.22 1,484 8.4% 60.5% -16.8% 27
AEO American Eagle Outfitters, Inc. $17.23 3,081 11.0% 33.2% 3.0% gray dot 28
GPS Gap, Inc. $33.49 13,162 10.2% 33.6% -1.3% gray dot 29
WSM Williams-Sonoma, Inc. $53.24 4,546 10.3% 31.7% 5.1% gray dot 30
VVV Valvoline Inc. $24.57 4,988 8.7% 53.4% 0.8% 31
CYD China Yuchai International Limited $25.27 1,029 24.2% 25.8% -6.9% 32
MEI Methode Electronics, Inc. $42.20 1,585 9.2% 37.8% 2.3% 33
HPQ HP Inc. $21.07 35,545 9.1% 66.4% -17.7% 34
GBX Greenbrier Companies, Inc. $50.95 1,663 14.4% 27.7% 0.8% 35
RHI Robert Half International Inc. $54.68 6,791 7.9% 79.9% 7.4% 36
CLF Cleveland-Cliffs Inc $6.41 1,930 10.3% 30.4% -26.0% 36
AHGP Alliance Holdings GP, L.P. $24.45 1,464 11.5% 30.0% -4.0% 37
INVA Innoviva, Inc. $13.00 1,557 7.7% 254.8% 225.0% 37
FFIV F5 Networks, Inc. $132.74 8,422 7.5% 249.9% 6.5% 38
AZO AutoZone, Inc. $721.89 20,519 8.1% 51.4% 4.8% 39
BBBY Bed Bath & Beyond Inc. $23.08 3,236 23.0% 27.2% 2.0% gray dot 40
AAPL Apple Inc. $169.37 877,943 7.5% 92.2% 8.6% gray dot 41
LB L Brands, Inc. $57.28 16,550 8.5% 60.6% 5.3% gray dot 42
BIG Big Lots, Inc. $59.55 2,594 9.8% 28.9% -0.6% gray dot 43
CBM Cambrex Corporation $49.65 1,664 9.4% 33.1% 15.5% 44
AEIS Advanced Energy Industries, Inc. $70.44 2,830 7.4% 104.9% -1.9% 45