IIEX QUALITY RANK
The investment rank ranges from zero (low quality) to seven (high quality). In general the lower the number the higher the risk.
The following add to the Quality Rank:
1. Pass the IIEX stability earnings requirement. Earnings stability is defined as positive earnings over the last 5 years (& ttm) & current EPS > than 3 years prior.
2. Current TTM dividend is not lower than any of the preceding 5 years
3. Dividend payout ratio is less than .70
4. Altman Z score > 3
5. Piotroski score meeting a & b below
a) TTM score plus previous year score >11
b) TTM score >= the previous 2nd year
6. Projected long term EPS growth >4.9%
7. Projected long term FCF growth >4.9%
The following subtract from the Quality Rank:
1. Negative sentiment i.e., Extremely low PE (<7) and out of line with the norm signaling numbers may not yet reflect obstacles ahead.
2. Altman Z score <2