Our in-house multi-factor system: risk gates first, then points for quality, valuation, balance sheet and momentum, refreshed daily across the entire market.
Save the strategy and StockScorer checks its rules for you every day. You'll get a heads-up whenever a stock crosses the upper or lower score threshold.
Once enough history is available, the backtest chart for this strategy will appear here.
Every stock runs through the same disclosed rules. The points add up to a score, traceable down to the individual rule.
Each rule checks a metric against a threshold, for example ROE above 15 %.
You decide how much each rule counts: from +1 to +3 or −1 to −3.
The sum is the score. Above the upper threshold: a high match with the profile.
These terms describe only the match with the criteria, not a recommendation to buy or sell.
Two knockout gates check bankruptcy risk (Z-score) and earnings quality (accruals) before any points count.
Return on capital, return on equity and the FCF margin measure the quality of the business model.
Earnings yield, EV/EBIT and the comparison against the stock's own 5-year P/E keep valuation in view.
Relative strength over 6 and 12 months plus distance to the 52-week high serve as entry signals.
The StockScorer Score is for anyone who wants a balanced, broadly supported assessment, as a starting point for their own scoring or as a permanent all-rounder. It is deliberately not a specialist: for a pure dividend, value or growth lens, the dedicated strategies go deeper.
The StockScorer Score is StockScorer's flagship strategy, bundling the most robust factor premia into one point system. Two risk gates check first whether bankruptcy risk and accounting quality are unremarkable. A stock that fails a gate is automatically rated low, no matter how good the rest of its numbers look. Only then do companies collect points for high capital returns, attractive valuation, a solid balance sheet and positive price momentum. Thresholds adapt to size class: small caps must score more points than large caps, because thinner analyst coverage means noisier data.
Evaluation runs in three stages. Stage one is a pair of knockout risk gates: a bankruptcy early-warning value (Z-score, building on Edward Altman's work) below 1.81, or an accrual ratio above 25% (following the accounting anomaly described by Richard Sloan), forces a low rating, regardless of the remaining points. Financials are exempt from the Z-score gate, since high balance-sheet leverage is part of their business model; missing values never block a stock.
Stage two awards points for quality (return on capital above 15% and 25%, return on equity, FCF margin), valuation (earnings yield, EV/EBIT, P/E below the stock's own 5-year average) and balance sheet (low leverage). Stage three adds momentum signals: relative strength versus the world market over 6 and 12 months and proximity to the 52-week high. Cash burn, expensive valuations and falling prices cost points.
The total is measured against size-dependent thresholds: large caps reach the upper threshold from 6 points, mid caps from 7, small caps from 8. Smaller companies have to prove more. This filters out data noise from thinly covered names.
Risk gates (knockout): Z-score ≥ 1.81 (financials exempt) and accrual ratio ≤ 25%, both must pass.
Quality: return on capital above 15% (+1) and from 25% (+2 cumulative), return on equity above 15% (+1), FCF margin above 8% (+1); negative free cash flow costs 2 points.
Valuation: earnings yield above 8% (+1), EV/EBIT below 10 (+1), current P/E below the stock's own 5-year average (+1); an earnings yield below 3% costs one point.
Balance sheet: debt-to-equity below 1.0 (+1); above 2.5 costs one point.
Momentum: 6- and 12-month relative strength above +5% (+1 each), within 15% of the 52-week high (+1); a 6-month drop of more than 15% costs one point.
Continuity: a dividend that has not been cut for at least five years earns a bonus point.
The score's strength is combining weakly correlated factors: quality protects against junk, valuation against overpaying, momentum against catching falling knives too early, and the gates remove structural risks before points even count.
Limits: as an all-rounder, the score rarely wins specialist disciplines. A pure dividend or deep-value lens is sharper in the dedicated sister strategies. In the backtest, individual criteria (52-week-high proximity, dividend continuity) are neutral where historical data points are missing; the backtest's data-quality panel shows this transparently.
For newcomers as the pre-selected default during onboarding, and for anyone who prefers a robust overall view to a single-factor bet. Every threshold and gate can be customised in the rule editor.