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Below are the results of a value screen using multiple requirements. The criteria are listed below:

Forward P/E > 0
Price/Cash < 3
Price/Free Cash Flow < 15
Debt/Equity < .1
Price/Book < 1
Current Ratio > 3

I did not add a liquidity screen such as a minimum share price or volume requirement in order to allow for more flexibility in evaluating potential investments. The screen is intended as a starting point for further investigation but tends to generate a small list of value companies with balance sheet strength and in theory more limited downside.

However, many of the companies are trading below book value and at low cash and FCF multiples due to concerns over future earnings and cash flow. The positive forward P/E requirement is intended to eliminate companies which do not expect profits over the next year but will not eliminate companies with dwindling earnings growth. Thus, I have added a second list with the following, modest, criteria:

EPS annual estimated growth next 5 years > 10%

Below are the two lists.

Ticker Company Forward P/E P/B P / Cash P/Free Cash Flow Current Ratio
ACET Aceto 7.86 0.86 2.43 9.36 3.98
CACH Cache Inc. 35.5 0.76 1.66 5.06 3.02
DIVX DivX, Inc. 51.7 0.92 1.22 7.83 8.67
DWSN Dawson Geophysical Co. 44.94 0.92 2.94 3.62 4.96
HDNG Hardinge Inc. 247 0.38 2.24 2.09 3.45
HOTT Hot Topic Inc. 15.28 0.99 2.89 9.74 3.24
OTCPK:IGOI iGo, Inc. 18.83 0.92 1.09 6.27 4.83
OPTV OpenTV Corp. 13.9 0.96 1.76 10.81 3.22
PCTI PCTEL, Inc. 36.25 0.89 1.58 14.54 16.76
QLTI QLT Inc. 27.56 0.87 1.4 3.1 13.88
RCMT RCM Tech 16.8 0.52 2.73 1.74 4.24
USAP Universal Stainless/Alloy 21.18 0.85 2.89 6.99 8.94
VOXX Audiovox Corporation 16.48 0.44 2.14 5.79 3.98
WSTL Westell Tech 9.58 0.97 1.46 10.03 4.29


List with added criteria:
Ticker Company EPS Growth Next 5 Years
ACET Aceto Corp. 22
CACH Cache Inc. 13.33
DIVX DivX, Inc. 20
HDNG Hardinge Inc. 30
HOTT Hot Topic Inc. 15
RCMT RCM Technologies Inc. 15
USAP Universal Stainless & Alloy Products Inc. 16

data source: Finviz

Author's disclosure: None.

Source: 14 Value Stocks Worth Considering