JHere are today’s updates for Validea Pound/market investor model based on the published strategy of Joseph Piotroski. This quantitative value strategy screens stocks with high book-to-market ratios and then separates financially sound companies by looking at a host of financial improvement criteria.

NELNET, INC. (NNI) is a mid-cap value stock in the consumer financial services sector. The rating under our strategy based on Joseph Piotroski has increased from 0% to 90% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Nelnet, Inc. is a technology company focused on loan management and education technology, services and payment processing. The Company’s segments include Lending Service and Systems (LSS); Education Technology, Services and Payment Processing (ETS&PP); Communications; Asset Generation and Management (AGA); Nelnet Bank; and corporate and other activities. The LSS segment focuses on student and consumer loan origination service and service, loan origination and service-related technology solutions. The ETS&PP segment provides services, such as tuition payment plans and billing, financial need assessment services and school information system software. The Communications segment focuses on the provision of fiber optic services directly to homes and businesses for Internet, telephone and television services. The AGA segment includes the acquisition and management of student assets and other loans. The Nelnet Bank segment focuses on the private education loan market.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy criteria.

BOOK/MARKET RATIO: PAST
RETURN ON ASSETS: PAST
EVOLUTION OF RETURN ON ASSETS: PAST
CASH FLOW FROM OPERATIONS: PAST
CASH FLOW IN RELATION TO NET INCOME: PAST
CHANGE IN LONG-TERM DEBTS/ASSETS PAST
CURRENT RATIO CHANGE: FAIL
EVOLUTION OF OUTSTANDING SHARES: PAST
EVOLUTION OF THE GROSS MARGIN: PAST
EVOLUTION OF ASSET TURNOVER: PAST

Detailed analysis of NELNET, INC.

Complete Guru Analysis for NNI

Full factor ratio for NNI

MOHAWK INDUSTRIES, INC. (MHK) is a mid-cap value stock in the Textiles – Non-Apparel industry. The rating under our strategy based on Joseph Piotroski has increased from 0% to 90% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Mohawk Industries, Inc. is a flooring manufacturer that creates products to enhance residential and commercial spaces around the world. The Company’s segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). The Global Ceramic segment designs, manufactures, sources and markets a range of ceramic tiles, porcelain tiles, natural stone, quartz, porcelain slab countertops and other products, which it mainly distributes in North America, Europe, South America and Russia. The Flooring NA segment designs, manufactures, sources and markets its flooring product lines, including rugs, carpets, underlay, laminate, resilient and wood flooring, which it distributes through its network of regional distribution centers and satellite warehouses. The ROW Flooring segment designs, manufactures, sources, licenses and markets its flooring, laminates, roofing elements, insulation board, medium density fiberboard and particle board.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy criteria.

BOOK/MARKET RATIO: PAST
RETURN ON ASSETS: PAST
EVOLUTION OF RETURN ON ASSETS: PAST
CASH FLOW FROM OPERATIONS: PAST
CASH FLOW IN RELATION TO NET INCOME: PAST
CHANGE IN LONG-TERM DEBTS/ASSETS PAST
CURRENT RATIO CHANGE: FAIL
EVOLUTION OF OUTSTANDING SHARES: PAST
EVOLUTION OF THE GROSS MARGIN: PAST
EVOLUTION OF ASSET TURNOVER: PAST

Detailed analysis of MOHAWK INDUSTRIES, INC.

Full Guru Analysis for MHK

Full factor report for MHK

More details on Validea’s Joseph Piotroski strategy

About Joseph Piotroski: Piotroski is not your typical Wall Street big shot. In fact, he’s not even a professional investor. He’s a good old accountant and college professor. But in 2000, shortly after beginning to teach at the University of Chicago Graduate School of Business, Piotroski published a groundbreaking article in the Journal of Accounting Research titled “Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers”. In it, Piotroski presented a stock-picking/short-selling accounting method that produced an average annual return of 23% from 1976 to 1996, more than double the gain of the S&P 500 during that time. Piotroski’s findings have been reported in major financial publications like SmartMoney. Today, he teaches accounting at Stanford University’s Graduate School of Business.

About Validea: Validea is an investment research service that tracks 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.