Stock Screener Definitions: How to Use Screening Metrics
Understanding stock screening metrics helps you find companies that match your investment criteria. Use these definitions to interpret screener results and make informed stock selections:
What is a stock screener and how do I use it?
A stock screener is a filtering tool that helps you narrow down thousands of stocks to find those matching your investment criteria. Use filter dropdowns to set parameters for market cap, P/E ratio, dividend yield, and other metrics. Click column headers to sort by any metric. Switch between tabs (Overview, Valuation, Performance, Dividends, Quality) to compare different data points.
What is P/E ratio and why does it matter?
The Price-to-Earnings (P/E) ratio measures how much investors pay for each dollar of company earnings. A P/E of 20 means investors pay $20 for every $1 of annual earnings. Lower P/E ratios may indicate value opportunities, while higher P/E ratios suggest growth expectations. Compare P/E ratios within the same industry for meaningful context.
What is market cap and what does it indicate?
Market capitalization (market cap) is the total value of a company's outstanding shares. Large-cap stocks ($10B+) offer stability, mid-cap stocks ($2B-$10B) balance growth and stability, while small-cap stocks (under $2B) offer higher growth potential with more volatility. Use the market cap filter to match your risk tolerance.
What is dividend yield for stocks?
Dividend yield represents annual dividend income as a percentage of the current stock price. A 3% yield means you receive $3 per year for every $100 invested. Dividend stocks typically yield 2-6%. Higher yields aren't always better - verify sustainability with payout ratio and dividend growth trends using our dividend screener.
What are quality metrics (Altman Z-Score, Piotroski F-Score)?
Quality metrics assess financial strength and bankruptcy risk. The Altman Z-Score measures bankruptcy probability (above 3.0 is safe, below 1.8 is risky). The Piotroski F-Score (0-9) evaluates profitability, leverage, and operating efficiency. Higher scores indicate stronger fundamentals. Use these filters to find financially stable companies.
How can I compare stocks using the screener?
The stock screener enables systematic comparison across 60+ metrics simultaneously. Filter by sector or industry first to compare similar companies, then evaluate valuation ratios (P/E, P/B, P/S), profitability margins (ROE, ROA, ROIC), and growth metrics (revenue growth, EPS growth). Use tabs to switch between metric categories for comprehensive analysis.
Each stock screening metric serves a different analytical purpose. Use this reference to understand which metrics matter most for your investment strategy:
Metric Category
Key Metrics
Best For
Valuation Metrics
P/E, P/B, P/S, P/FCF, PEG, EV/EBITDA
Value investors; comparing relative valuations; identifying undervalued stocks
Quality investors; avoiding value traps; systematic stock selection
How to Screen Stocks: Step-by-Step Guides
Master systematic stock selection with these step-by-step screening techniques. Whether you're finding value stocks, quality compounders, or dividend growers, these guides show you how to use stock screening criteria effectively:
Systematic Value Stock Selection: Screen by P/E Ratio
Switch to the Valuation tab for ratio metrics
Apply P/E Ratio filter (under 15 for value screens)
Add Market Cap filter (over $2B for stability)
Check Piotroski F-Score is 7+ for quality
Sort by Dividend Yield for income value stocks
Systematic Quality Stock Selection: Screen by Profitability
Switch to the Quality tab for profitability metrics
Apply ROE filter (over 15% for high returns)
Add Debt/Equity filter (under 0.5 for safety)
Check Altman Z-Score is over 3.0
Sort by ROIC to find efficient capital allocators
Systematic Dividend Stock Selection: Screen by Yield & Growth
Switch to the Dividends tab for income metrics
Apply Dividend Yield filter (2-6% for balanced income)
Add Payout Ratio filter (under 60% for safety)
Check Years of Growth is 5+ for consistency
Sort by Dividend CAGR 5Y for growth rate
Related Stock & Investment Tools
Complement your stock screening with these related investment analysis tools:
Common questions about using the stock screener and understanding stock metrics:
How do I use the stock screener?
Use filter dropdowns to narrow stocks by market cap, P/E ratio, and 1-year return. Click column headers to sort. Switch tabs to view different metrics.
What is the best way to screen for dividend stocks?
Start with the Dividend Yield filter (2-5% range), then apply Payout Ratio filter (under 70%), and review Dividend Growth YoY to identify sustainable income stocks. Switch to the Dividends tab to see yield, payout ratio, frequency, and ex-dividend dates together.
How do I find undervalued stocks using the screener?
Use the Valuation tab and filter by low P/E ratio, Price-to-Book, and Price-to-Sales compared to sector peers. Compare PEG ratio to assess value relative to growth. Cross-reference with fundamentals by checking revenue growth and profit margins to confirm quality.
Can I screen stocks by market cap?
Yes, use the Market Cap filter dropdown to select a size range: under $1B, $1B-$10B, $10B-$50B, $50B-$200B, or $200B+. For the standard tiers (mega-cap, large-cap, mid-cap, small-cap and micro-cap), browse the market cap lists.
What is the P/E ratio and how do I use it for screening?
P/E (Price-to-Earnings) ratio shows how much investors pay for each dollar of earnings. Lower P/E may indicate undervaluation, while higher P/E suggests growth expectations. Filter by P/E ratio range and compare against sector average valuations using the screener.
How do I screen for high-performing stocks?
Switch to the Performance tab and filter by 1-Year Change, 6-Month Change, or YTD performance ranges. Sort by any timeframe column to find top performers. Combine with fundamentals like revenue growth and margin trends to identify quality growth candidates.
What financial health metrics should I screen for?
Use the Financial Health tab to review liquidity ratios (Current Ratio, Quick Ratio), debt ratios (Debt-to-EBITDA, Debt-to-Equity), and quality scores (Altman Z-Score for bankruptcy risk, Piotroski F-Score 0-9 for financial strength). Filter for companies with Current Ratio above 1.5, Debt-to-Equity under 1.5, and Piotroski F-Score above 7 to identify financially healthy stocks.
How do I filter stocks by multiple metrics at once?
Use multiple filter dropdowns simultaneously to apply layered screening criteria. Combine Market Cap filter with P/E Ratio filter and 1-Year Return filter to find specific stock types. All filters work together, and the stock list updates in real-time as you adjust each criterion.
Which metrics best identify undervalued stocks in the screener?
The most effective valuation metrics include P/E ratio (compare to sector average), Price-to-Book (P/B) for asset-heavy industries, Price-to-Sales (P/S) for revenue-focused analysis, and EV/EBITDA for debt-adjusted valuation. Use PEG ratio to validate whether low valuations reflect fair pricing or growth concerns.
How do I screen dividend stocks for safety and sustainability?
Screen for dividend safety by filtering Payout Ratio under 60-70%, checking Dividend Growth YoY and CAGR 5Y for consistent increases, and reviewing Years of Growth to find dividend aristocrats. Use the Profitability tab to check FCF Margin and ROE, then verify Financial Health with Current Ratio and Debt-to-Equity to confirm the company isn't borrowing to fund dividends.