Validea’s top five financial stocks based on Benjamin Graham – 7/8/2022
JHere are the best rated financial stocks according to Validea Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology selects stocks that have low P/B and P/E ratios, as well as low debt and strong long-term earnings growth.
ENOVA INTERNATIONAL INC (ENVA) is a small-cap value stock in the consumer financial services sector. The rating under our Benjamin Graham-based strategy is 86% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: Enova International, Inc. is a technology and analytics company. The Company operates through domestic and international operations segment. It provides or arranges loans or draws lines of credit to consumers in approximately 38 states in the United States and Brazil. The Company also provides small business financing in more than 50 states and the Washington District of Columbia in the United States. The Company uses its technology, analytics and customer service capabilities to assess, underwrite and fund loans or provide financing, which enables it to offer consumers and small businesses credit or financing. Its customers include the growing number of consumers and small businesses, who have bank accounts but use alternative financial services due to their limited access to more traditional credit from banks, credit card companies and other lenders. Its financing products include installment loans and receivables purchase agreements (RPAs) and line of credit accounts.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SECTOR: | FAIL |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of ENOVA INTERNATIONAL INC
JANUS HENDERSON GROUP PLC (JHG) is a mid-cap value stock in the investment services sector. The rating under our Benjamin Graham-based strategy is 86% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: Janus Henderson Group PLC is an independent global asset manager. The Company specializes in active investing in all asset classes. It operates through the investment management business segment. The Company manages a range of actively managed investment products for institutional and retail investors across five capabilities: equities, fixed income, multi-asset, quantitative and alternative equities. It operates through different product lines, distribution channels and geographic regions. The Company operates in North America, the United Kingdom (UK), Continental Europe, Latin America, Japan, Asia and Australia.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SECTOR: | FAIL |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed analysis of JANUS HENDERSON GROUP PLC
EVERCORE INC (EVR) is a mid-cap value stock in the investment services sector. The rating under our Benjamin Graham-based strategy is 71% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: Evercore Inc. is an independent global investment banking advisory firm. The Company operates through two segments: Investment Banking and Investment Management. The Investment Banking segment includes its global advisory business through which it provides strategic corporate advisory, capital markets advisory and institutional equity services. The Investment Management segment includes wealth management and trust services through Evercore Wealth Management LLC (EWM), as well as private equity through investments in entities that manage wealth funds. capital investment. Its corporate strategic advisory business provides differentiated strategic and tactical advice and unparalleled execution to financial sponsors and public and private companies across a range of industry and geographic sectors. The company also helps clients raise public and private capital and provides equity research, equity sales and agency trade execution services.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SECTOR: | FAIL |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | FAIL |
Detailed Analysis of EVERCORE INC
360 DIGITECH INC (QFIN) is a small-cap value stock in the consumer financial services sector. The rating under our Benjamin Graham-based strategy is 71% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: 360 DigiTech, Inc, formerly 360 Finance, Inc, is a holding company primarily operating digital consumer finance platforms. The Company primarily provides tailored online consumer credit products to prime and underserved borrowers, funded primarily through financial partners. The Company’s technology platform enables a user experience supported by resolute risk management.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SECTOR: | FAIL |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed analysis of 360 DIGITECH INC
ARCH CAPITAL GROUP LTD. (ACGL) is a large-cap value stock in the insurance sector (Prop. & Casualty). The rating under our Benjamin Graham-based strategy is 57% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: Arch Capital Group Ltd. (ACGL) provides insurance, reinsurance and mortgage insurance through its wholly owned subsidiaries. The Company offers a range of property and casualty, property and mortgage insurance and reinsurance lines. The Company’s segments include Insurance, Reinsurance, Mortgage, Other and Corporate. The insurance industry product lines include construction and national accounts; excess and surplus losses; products from lenders; professional lines; programs; real estate, energy, marine and aviation; travel, accident and health, and others. The product lines of the reinsurance sector include property and casualty insurance; navy and aviation; other specialty; real estate disaster; non-catastrophic goods, and others. The Mortgages segment includes mortgage insurance and reinsurance operations in the United States and overseas as well as government-sponsored enterprise (GSE) credit risk sharing operations. The other segment includes the results of Watford Holdings Ltd. (Watford Re).
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SECTOR: | FAIL |
| SALES: | PASS |
| CURRENT RATIO: | FAIL |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | FAIL |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed analysis of ARCH CAPITAL GROUP LTD.
More details on Validea’s Benjamin Graham strategy
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investment world lasted decades after his death in 1976. Known as both the “Father of Investing of value” and the founder of the entire field of security analysis, Graham mentored many of the greatest investors in history – including Warren Buffett – and inspired many others, including John Templeton, Mario Gabelli and another of Validea’s gurus, John Neff. Graham built his fortune and reputation after going through extremely difficult times, including the Great Depression and his own family’s financial struggles after his father died when Benjamin was a young man. His investment business posted annual returns of around 20% from 1936 to 1956, far exceeding the average market return of 12.2% during this period.
About Validea: Validea is an investment research service that tracks the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, Click here
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