Source: Reproduces the PEG criterion from Peter Lynch, One Up on Wall Street (1989)
Lynch's bar of a PEG ratio at or below 1.0 — cheap relative to earnings growth — combined with 3-year revenue CAGR of 15%+. This tool proxies the growth rate in PEG with 3-year net income CAGR, which lets companies whose growth was inflated by one-off gains slip through. Requiring revenue growth separately is what this combination is for: it cuts down those false positives.
Free, no login. The button opens the screener with the above conditions applied.
Data comes from annual securities reports disclosed on EDINET (Japan FSA), via EDINET DB. Price-related values are as of each company's fiscal year-end (back-calculated from the disclosed trailing PER), not live quotes. Coverage: all TSE-listed companies, with names added progressively.
PEG ratio (PER divided by earnings growth) of 1.0 or below means cheap relative to growth (GARP). Growth is proxied by 3-year CAGR of net income. One-off gains can inflate this growth figure, so cross-checking against revenue growth is recommended. (Source: Peter Lynch, One Up on Wall Street (1989))
Number of the last 5 fiscal years (0-5) in which net income was negative. 3+ flags chronic losses. A quick check that a seemingly-cheap stock isn't a habitual underperformer, and also a building block of the Graham-style defensive investor criteria (no losses in the last 5 years). (Source: This tool's core design)
A rule of thumb: revenue growth (3-year CAGR) plus operating margin at or above 40% signals a good balance of growth and profitability. Widely used to evaluate SaaS companies abroad, and applies directly to screening Japanese SaaS names too. (Source: Common rule of thumb in the global SaaS industry)