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Validea Benjamin Graham Strategy Daily Upgrade Report - 5/3/2019

The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

ANIXTER INTERNATIONAL INC. (AXE) is a mid-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Benjamin Graham changed from 57% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Anixter International Inc. is engaged in the distribution of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. The Company operates through three segments: Network & Security Solutions (NSS), Electrical & Electronic Solutions (EES), and Utility Power Solutions (UPS). The NSS segment's product portfolio includes access control, power, cable management, wireless, professional audio/video, voice and networking switches, and other ancillary products. The EES segment's product portfolio includes electrical and electronic wire and cable, shipboard cable, support and supply products, low-voltage cable, instrumentation cable, industrial communication and control products, security cable, connectors, industrial Ethernet switches, and voice and data cable. The UPS segment supplies electrical transmission and distribution products, power plant maintenance, repair and operations supplies, and smart-grid products.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

SECTOR: FAIL
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

SCHWEITZER-MAUDUIT INTERNATIONAL, INC. (SWM) is a small-cap value stock in the Paper & Paper Products industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Schweitzer-Mauduit International, Inc. (SWM) is a diversified producer of engineered solutions and materials for a variety of industries. The Company has two operating product line segments: Engineered Papers, and Advanced Materials and Structures. As of December 31, 2016, the Company conducted business in over 90 countries and operate 18 production locations across the world, with facilities in the United States, Canada, the United Kingdom, France, Luxembourg, Russia, Brazil, China and Poland. Through its Engineered Papers (EP) segment, the Company primarily serves the tobacco industry via the manufacture and sale of paper and reconstituted tobacco products. Through Advanced Materials & Structures (AMS) segment, the Company is a specialty producer of resin-based plastic netting through an extrusion process, as well as certain meltblown products, machined plastic core tubes, urethane films, and resin-based rolled products.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

SECTOR: FAIL SECTOR: PASS
SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

MAMMOTH ENERGY SERVICES INC (TUSK) is a small-cap value stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Mammoth Energy Services, Inc. is an integrated oilfield service company. The Company is engaged in the exploration and development of North American onshore unconventional oil and natural gas reserves. The Company's segments include Contract Land and Directional Drilling Services; Completion and Production Services; Natural Sand Proppant Services, and Remote Accommodation Services. Its Completion and Production Services division provides pressure pumping services, pressure control Services, flowback services and equipment rentals. Its Natural Sand Proppant Services division is engaged in selling, distributing and producing proppant for hydraulic fracturing. Its Contract Land and Directional Drilling Services division provides drilling rigs and crews for operators, as well as rental equipment. Its Remote Accommodation Services division provides housing, kitchen and dining, and recreational service facilities for oilfield workers located in remote areas.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

SECTOR: FAIL SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

WARRIOR MET COAL INC (HCC) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Warrior Met Coal, Inc., formerly Warrior Met Coal, LLC, is a producer and exporter of metallurgical coal for the steel industry from underground mines located in Brookwood, Alabama, southwest of Birmingham and near Tuscaloosa. These underground coalmines are 1,400 to 2,100 feet underground. Its operations serve markets in the United States, Europe, Asia and South America via barge and rail access to the Port of Mobile. Currently it has the operational capacity to mine eight million tons of coal per year from more than 300 million tons of recoverable reserves. Its operations also extract methane gas from the Blue Creek coal seam. Its gas division represents commercial programs for coal seam degasification in the country, producing approximately 30 million cubic feet of gas daily from over 1750 gas wells. Its mines operate under permits issued by the Alabama Surface Mining Commission (ASMC), the Alabama Department of Environmental Management (ADEM) and other state and federal agencies.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

SECTOR: FAIL SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: PASS SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: FAIL LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on Benjamin Graham has returned 479.54% vs. 193.49% for the S&P 500. For more details on this strategy, click here

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

About Validea: Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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