For this week’s content analysis, we take a look at a predefined SP Filter accessible to all our users. The “Economic Inconsistencies” filter enables you to identify companies with downward trending EVA and upward trending net operating profit (NOP). The companies need to have sales of at least $300 million and a return on capital greater than 5%. Investors should avoid such companies because of the opposite trends in EVA and NOP. 
Download
We find 10 companies trading in the United States that match such criteria. Only three companies, Merck (MRK), Teva Pharmaceutical (TEVA) & Hillenbrand (HI), trade at a discount to their intrinsic value. All the 10 companies exhibit a decrease in EVA over the last 3 and 12 months as well as an increase in net operating profit over the same periods. When accessing an executive summary, you can see such situation in the graphics of the economic performance section (3rd section).
The “Economic Inconsistencies” is just one of the 10 predefined filters that can help you in your stock selection.
