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<h4 align="center">A value investing tool based on Warren Buffett, Joseph Piotroski and Benjamin Graham thoughts</h4>

# Welcome to Valinvest
# Welcome to Valinvest <!-- omit in toc -->

> NB: This is still in early development.
## Table of contents :books:
## Table of contents :books: <!-- omit in toc -->

- [Introduction](#introduction)
- [Methodology description](#methodology-description)
- [Profitability](#profitability)
- [Leverage, Liquidity and Source of Funds](#leverage-liquidity-and-source-of-funds)
- [Operating Efficiency](#operating-efficiency)
- [Installation](#installation)
- [Examples](#examples)
- [Starbucks Corporation (SBUX)](#starbucks-corporation-sbux)
- [Apple Inc. (AAPL)](#apple-inc-aapl)
- [License](#license)
- [Credits](#credits)

## Introduction

The aim of the package is to evaluate a stock according to his fundamentals by setting a score and identify buy and sells opportunies through technical indicators.

## Methodology description

The scoring methodology is based on Joseph Piotroski's study ([Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers](http://www.chicagobooth.edu/~/media/FE874EE65F624AAEBD0166B1974FD74D.pdf)). The F-Score is used to help financial investment decisions by finding the best value stocks on the market.<br>

The score is calculated based on 9 criteria divided into 3 groups:

#### Profitability
* Return on Assets (1 point if it is positive in the current year, 0 otherwise)
* Operating Cash Flow (1 point if it is positive in the current year, 0 otherwise)
* Change in Return of Assets (ROA) (1 point if ROA is higher in the current year compared to the previous one, 0 otherwise)
* Accruals (1 point if Operating Cash Flow/Total Assets is higher than ROA in the current year, 0 otherwise)

- Return on Assets (1 point if it is positive in the current year, 0 otherwise)
- Operating Cash Flow (1 point if it is positive in the current year, 0 otherwise)
- Change in Return of Assets (ROA) (1 point if ROA is higher in the current year compared to the previous one, 0 otherwise)
- Accruals (1 point if Operating Cash Flow/Total Assets is higher than ROA in the current year, 0 otherwise)

#### Leverage, Liquidity and Source of Funds
* Change in Leverage (long-term) ratio (1 point if the ratio is lower this year compared to the previous one, 0 otherwise)
* Change in Current ratio (1 point if it is higher in the current year compared to the previous one, 0 otherwise)
* Change in the number of shares (1 point if no new shares were issued during the last year)

- Change in Leverage (long-term) ratio (1 point if the ratio is lower this year compared to the previous one, 0 otherwise)
- Change in Current ratio (1 point if it is higher in the current year compared to the previous one, 0 otherwise)
- Change in the number of shares (1 point if no new shares were issued during the last year)

#### Operating Efficiency
* Change in Gross Margin (1 point if it is higher in the current year compared to the previous one, 0 otherwise)
* Change in Asset Turnover ratio (1 point if it is higher in the current year compared to the previous one, 0 otherwise)

- Change in Gross Margin (1 point if it is higher in the current year compared to the previous one, 0 otherwise)
- Change in Asset Turnover ratio (1 point if it is higher in the current year compared to the previous one, 0 otherwise)

This software calculates an alternate version of the F-Score as follows:

## Installation

`pip install valinvest`

## Examples
> Exemple Excel de SBUX

> Exemple Excel de AAPL
### Starbucks Corporation (SBUX)

| | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Score |
| ------------ | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ----- |
| REV_G | | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| EBT_G | | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 0 | 0 | 1 | 0.7 |
| EPS_G | | 1 | 1 | 1 | 0 | 1 | 0 | 1 | 1 | 1 | 0 | 0.7 |
| ROIC | 1 | 0 | 1 | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 0.8 |
| CROIC | 1 | 1 | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 0.9 |
| 5YRS_BETA | | | | | | | | | | | | 1 |
| EBITDA_COVER | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| DEBT_COST | 0 | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 0.7 |
| EQ_BUYBACK | | 1 | 0 | 0 | 1 | 0 | 0 | 1 | 1 | 1 | 1 | 0.6 |
| F-SCORE | | | | | | | | | | | | 7.4 |

### Apple Inc. (AAPL)

| | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Score |
| ------------ | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ---- | ----- |
| REV_G | | 1 | 1 | 1 | 1 | 1 | 1 | 0 | 1 | 1 | 0 | 0.8 |
| EBT_G | | 1 | 1 | 1 | 0 | 1 | 1 | 0 | 1 | 1 | 0 | 0.7 |
| EPS_G | | 1 | 1 | 1 | 0 | 0 | 1 | 0 | 1 | 1 | 0 | 0.6 |
| ROIC | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| CROIC | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| 5YRS_BETA | | | | | | | | | | | | 0 |
| EBITDA_COVER | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| DEBT_COST | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| EQ_BUYBACK | | 1 | 0 | 0 | 1 | 0 | 1 | 1 | 1 | 1 | 1 | 0.7 |
| F-SCORE | | | | | | | | | | | | 6.8 |

## License

This project is licensed under the MIT License - see the [LICENSE.md](https://github.com/astro30/valinvest/blob/master/LICENSE) file for details

## Credits

This software uses code from several open source packages:

- [pandas](http://pandas.pydata.org)
- [numpy](http://numpy.pydata.org)
- [requests](https://requests.readthedocs.io/en/master/)
- [alpha_vantage](https://github.com/RomelTorres/alpha_vantage)

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