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Graham-style Net-Net (Below NCAV)

Source: Reproduces the NCAV criterion from Benjamin Graham, Security Analysis (1934)

Stocks where NCAV (current assets minus total liabilities) exceeds market cap — cheap even after valuing all fixed assets at zero. Graham's original bar was to buy at no more than 2/3 of NCAV (a ratio of 1.5+), but that level is extremely rare, so this screen starts at a ratio of 1.0 to cast a wider net (raise the 1 to 1.5 in the conditions to return to the original standard). Chronic loss-makers and the Altman Z distress zone are excluded to mechanically filter out names that are merely cheap and dying.

Screen conditions

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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.

About the metrics used here

Graham-style Net-Net Stocks

A classic value strategy: buy at a market cap no more than 2/3 of NCAV (current assets minus total liabilities), i.e. a ratio of 1.5+. The most conservative bar there is — cheap even after valuing fixed assets at zero. (Source: Benjamin Graham, Security Analysis (1934))

Loss Years in Last 5 Years

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)

Altman Z-Score

A bankruptcy prediction model (the original 1968 formula) that weights and combines working capital, retained earnings, operating income, market cap, and revenue. 3.0+ is the "safe" zone, below 1.8 is the "distress" zone. Used here to mechanically filter out the "cheap but dying" companies that net-cash-style screening tends to surface. (Source: Altman (1968))

Metrics we deliberately left out

Kabu1000-style Net-Net Index

The definition used by Kabu1000, a leading Japanese net-net investor. Checks whether market cap is exceeded by highly liquid assets (cash & deposits + notes/accounts receivable + securities + investment securities - allowance for doubtful accounts, with inventory valued at zero) minus total liabilities — a stricter bar than Graham's NCAV. The index (market cap / liquid assets) qualifies below 1.0 (the author's rules of thumb: below 0.66 is "very cheap", below 0.5 is "dirt cheap"). (Source: Kabu1000, Onisoku Kabushiki Toshi ("Lightning-Fast Stock Investing") and other works)

Kabu1000-style Liquid Assets

Cash & deposits + notes/accounts receivable + securities + investment securities - allowance for doubtful accounts. Inventory is valued at zero on the grounds that it's not readily convertible to cash. Used as (part of) the denominator of the Kabu1000-style net-net index. (Source: Kabu1000, Onisoku Kabushiki Toshi ("Lightning-Fast Stock Investing") and other works)

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