Screen stocks the Joel Greenblatt way
Greenblatt's Magic Formula combines two simple ideas: buy good businesses cheaply. High return on invested capital identifies quality, high earnings yield identifies value.
How this screen is built
Every result passes all filters
This screen applies all criteria simultaneously across 100,000+ stocks. Every result must pass all filters — not just one or two.
High Return on Invested Capital
CROIC above 25% identifies businesses that consistently earn high returns on every dollar deployed. This is Greenblatt's proxy for a good business — one with a real competitive advantage.
High Earnings Yield
Earnings yield above 10% — Greenblatt's preferred valuation measure, calculated as EBIT divided by enterprise value. High yield means you are paying little for each dollar of operating earnings.
The Magic Formula Combination
The formula ranks all stocks by ROIC and by earnings yield separately, then buys the ones ranked highest on both simultaneously. Simple in theory, remarkably powerful in practice over long periods.
Excluding Financials and Utilities
Financials use leverage differently and utilities have regulated returns — both distort the formula's metrics. Excluding them keeps the screen clean and its logic consistent.
What Swalex adds on top
Quality score as an additional sanity check. The Magic Formula is purely mechanical — Swalex adds a quality filter to avoid companies that score well on the formula but are fundamentally deteriorating.
Last screen results
What the Joel Greenblatt screen surfaced
Results based on latest available data. Run the live screen for current results.
| Ticker | Name | Country | CROIC | Earnings Yield | Quality | Value Score | Market Cap |
|---|---|---|---|---|---|---|---|
| ZEAL.CO | Zealand Pharma | Denmark | 1235% | 28% | 81% | 73% | $3.5B |
| GUBRA.CO | Gubra | Denmark | 1070% | 30% | 93% | 68% | $877M |
| HRTA.JK | Hartadinata Abadi | Indonesia | 871% | 12% | 84% | 61% | $606M |
| ARYT.TA | Aryt Industries | Israel | 608% | 11% | 88% | 28% | $1.0B |
| EVER | EverQuote | USA | 224% | 17% | 85% | 54% | $618M |
| 6366.T | Chiyoda Corp | Japan | 235% | 40% | 66% | 72% | $1.3B |
| 6417.T | Sankyo | Japan | 120% | 14% | 76% | 63% | $2.3B |
| CALM | Cal-Maine Foods | USA | 47% | 19% | 64% | 65% | $3.6B |
| NRDS | NerdWallet | USA | 40% | 11% | 83% | 62% | $549M |
| ITMG.JK | Indo Tambangraya | Indonesia | 40% | 13% | 66% | 72% | $1.4B |
This screen is inspired by the Magic Formula described in 'The Little Book That Still Beats the Market' by Joel Greenblatt. Not affiliated with or endorsed by Joel Greenblatt or Gotham Asset Management. Not investment advice.