Benjamin Graham pioneered the value investing discipline, creating systematic methods for finding undervalued securities that remain influential today. His most famous protégé, Warren Buffett, exemplifies the enduring power of Graham’s teachings. Graham’s strategy revolves around locating solid, well-established businesses whose market prices fall short of their actual worth, while steering clear of risky, unproven investments.
Core Investment Principles
Graham favored companies with demonstrable operating results over those dependent on optimistic projections. This cautious methodology prioritizes wealth preservation through identifying substantial gaps between what investors pay and what assets are genuinely worth—his famous “margin of safety” concept.
Validea’s Implementation of Graham’s Methods
Validea has translated Graham’s investment philosophy into a systematic screening process that examines potential investments through four critical dimensions:
Company Fundamentals
- Scale Requirements: Companies must generate at least $340 million in annual sales to demonstrate operational stability
- Profit Reliability: Sustained profitability across five straight years
- Sector Preferences: Emphasis on established industries rather than technology ventures
Balance Sheet Quality
- Cash Position: Current assets must exceed current liabilities by at least 2:1
- Debt Levels: Working capital should surpass total long-term obligations
Performance Trajectory
- Growth Standards: Earnings must expand by a minimum of 30% across a decade
- Earnings Stability: Three-year profit averages smooth out short-term fluctuations
Pricing Discipline
- Earnings Multiple: Average price-to-earnings ratio over three years stays under 15
- Comprehensive Valuation: Price-to-earnings plus price-to-book ratios combined must remain below 22
Discover how Validea’s models can help you identify high-quality, long-term investments, even in changing market conditions. Visit Validea.com to access in-depth stock analysis and tools designed to emulate proven investment principles. Take a Free Trial Today!
Here are the top 10 stocks using Validea’s Benjamin Graham strategy for June of 2025.
| Ticker | Company Name | Value Investor | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield |
|---|---|---|---|---|---|---|---|---|---|---|
| BCC | BOISE CASCADE CO | 100 | $87.64 | $3,298 | 11.0 | 0.5 | 35 | 1.6 | 7.2 | 0.7% |
| BG | BUNGE GLOBAL SA | 100 | $82.30 | $11,062 | 10.4 | 0.2 | 35 | 1.1 | 6.9 | 3.3% |
| MLR | MILLER INDUSTRIES INC | 100 | $44.46 | $509 | 9.5 | 0.5 | 37 | 1.3 | 7.4 | 1.7% |
| SCVL | SHOE CARNIVAL INC | 100 | $19.01 | $520 | 8.0 | 0.4 | 22 | 0.8 | 5.3 | 2.9% |
| WB | WEIBO CORP (ADR) | 100 | $9.62 | $2,397 | 7.0 | 1.4 | 70 | 0.7 | 5.7 | 0.0% |
| UTHR | UNITED THERAPEUTICS CORP | 86 | $284.09 | $12,814 | 11.3 | 4.3 | 43 | 1.9 | 10.0 | 0.0% |
| UVV | UNIVERSAL CORP | 86 | $59.52 | $1,471 | 15.7 | 0.5 | 73 | 1.0 | 8.5 | 5.4% |
| WGO | WINNEBAGO INDUSTRIES INC | 86 | $28.63 | $803 | 0.3 | 23 | 0.7 | 18.0 | 4.5% | |
| ZTO | ZTO EXPRESS (CAYMAN) INC (ADR) | 86 | $17.65 | $14,307 | 11.3 | 2.3 | 39 | 1.6 | 8.2 | 5.6% |
| TEX | TEREX CORP | 86 | $47.69 | $3,128 | 13.0 | 0.6 | 43 | 1.7 | 8.8 | 1.4% |
Further Research
