12 companies from the ASX 300 that pass our filters!

Marcus Tuck
Head of Research

8 am 28 September 2020

Using Bloomberg’s screening tool, we screened the ASX 300 universe for stocks that have the following characteristics:

  • Share price above 50, 100 and 200 day moving averages
  • Free cash flow yield >= 3.5%
  • FY23 P/E ratio <= 25
  • FY23 EV/EBITDA <= 20
  • Forecast EPS CAGR >= 7% for next 3 years
  • No FY21 EPS downgrade over last 3 months
  • Net debt < Shareholders equity

The forward-looking measures use Bloomberg consensus forecasts. Out of the 300 stocks in the index, only 12 currently pass through all of those filters. They can be seen in seen in the table below, ranked in descending order of free cash flow yield.

On Friday, Premier Investments reported very strong cash flows for its financial year ended 25 July 2020. Its high free cash flow relative to market capitalization puts it on the highest free cash flow yield in the group, with the medical centre operator Healius not far behind. In Premier’s case, cash flows were artificially boosted by the non-payment of rent and receipt of government support payments. The company is closing a number of stores and hastening its transition to online sales.

Disclosure: The author owns HSN shares.

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