grahamBot

Current Features

Asks for company name, autocompletes ticker
Writes report of all annual EPS and dividend payouts since 1989
Takes 36 minutes to run on all 2019 Fortune 500 companies
Can run 12 tests total

Terms as defined by me

I. I. = An abbreviation for the Intelligent Investor
Net Working Capital = Current Assets - Current Liabilities
Current Ratio = Current Assets / Current Liabilities
Shareholder Equity = Total assets - Total Liabilities
EPS = Earnings per Share (Graham always refers to diluted EPS rather than basic EPS)
P/E (Ratio) = Current Price / EPS of a certain number of years
P/B (Ratio) = Current Price / Most recently reported book value per share
TTM = Trailing Twelve Month (Average)

The Tests:

All of these tests come from either the original 1949 version or the revised 1972 version of the Intelligent Investor.

Strong Earnings and dividends

1. Diluted EPS increase by 1.33 in the past 10 years using three year averages at the beginning and end
2. Positive earnings over the past 10 years
3. Dividend record should be uninterrupted for 20 years ### Strong financial condition
4. Shareholder Equity / Total Assets > 0.5 (I. I. 1949)
5. Long-term debt should be less than Net Working Capital (I. I. 1972)
6. (For industrial firms) Current ratio should be greater than 2.
7. (For public utilities) Long term debt should not exceed 2x the Shareholder Equity (I. I. 1972) ## Price filters
8. Trailing Twelve Month Average P/E < 20 (I. I. 1972 Chapter 5)
9. 7 year P/E < 25 (I. I. 1972 Chapter 5)
   
10. Price should not be more than 15 times the average earnings of the past 3 years (I. I. 1972 Chapter 14)
11. Price to book ratio should be no more than 1.5 (Intelligent Investor 1972 Chapter 14)
12. A low PE ratio (below 15) can justify a high P/B so, PE ratio x PB ratio should be less than or equal to 22.5 (The text from which the Graham Number was deduced) (I. I. 1972 Chapter 14)

Built With

• pandas
• python
• scrapy