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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

Cody-Klein Enterprises

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