Screened and Scored: Here Are My Top Canadian Stock Picks
A data-driven stock screening across the Canadian market
I have been meaning to do a deep dive into the Canadian stock market for years, and I am excited to finally share the results of my screening and selection process today. While I have not covered the entire market just yet, I have already analyzed dozens of stocks and narrowed down a list of my top picks.
In this article, you will find a curated selection of 34 Canadian stocks, each rated using my personal scoring system. I will walk you through the names that stood out, explain how I assessed them, and of course, reveal my favorites at the end.
If you like screeners, you can find, you can find my US and Europe Quality Screeners just here
The different scores
The screener uses 5 different categories. Each category has different metrics, mainly quantitative. Each metric gives a score depending on thresholds I defined, once again to fit my investment style.
Growth. The growth category uses 4 metrics:
Past and future revenue growth
Past and future EPS growth
Quality. The quality category uses 3 metrics: net profit margin, ROE and cash/debt ratio vs the EBITDA.
Valuation. For valuation, I use 3 metrics: PE, FCF yield and PEG.
Shareholder return. This category shows if the company is shareholder oriented. I look at 3 metrics: dividend yield, dividend growth and buybacks/dilution in outstanding shares.
Market. This is the only qualitative metrics. It represents the value of being present in the market and the company’s strength in it. It is a personal appreciation.
Keep in mind that this scoring system is not designed to pinpoint the absolute best opportunities. To do that, you will need to dive deeper, thoroughly analyze the market, and assess key metrics. Instead, this system helps you identify stocks within your investable universe while highlighting their main characteristics (growth, valuation, quality, …) as outlined in this article.
At the end of the article, among those 34 stocks, I will share my 8 favorite ones.
The screener
In this screener, I have selected 34 of my favorite companies from Canada, using the latest available data for scoring and ranking. The term “quality” is not strictly defined here; it may refer to exceptional metrics, a robust business model, market dominance, or a strong competitive advantage.
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