Graham Style Screen Resulted with 2 Stocks Passing (CSS & INGR)

GrahamGrade · 2026-06-10T03:56:26+00:00

=== SUMMARY === - Post describes a Graham-style screen that found only two stocks passing all criteria: CCS (Century Communities) and INGR (Ingredion). - Author highlights that homebuilders appear cheap on trailing P/E but face margin compression, Chinese ADRs fail due to VIE structure risk, and CALM’s low P/E is driven by abnormal egg prices. - Quality assessment: This is well-reasoned value screening with clear explanation of why certain stocks are rejected, making it solid DD rather than noise. === SENTIMENT === MIXED === TRADE IDEAS === TICKER - DIRECTION | confidence: 0.60 | sentiment: +0.30 Speaker: u/GrahamGrade Thesis: 1. THE FACT: CCS passes all Graham criteria (P/E 12.4, P/B 0.62, current ratio 12.09, 30%+ margin of safety vs Graham Price). It is an affordable housing builder with clean audit and no going-concern flags. 2. THE BRIDGE: The screen systematically identifies deeply undervalued, financially sound companies. Graham-style investing historically outperforms when buying such survivors. 3. THE VERDICT: CCS appears mispriced relative to its asset base and earnings power, offering a classic value opportunity if earnings do not collapse. 4. RISKS: Forward guidance for homebuilders suggests margins may compress. If housing downturn deepens, earnings could drop, making trailing P/E misleading. Also interest rate sensitivity. Timeframe: medium-term Key Points: - Graham screen survivor – deep value - P/B 0.62 implies asset bargain - Homebuilder cyclical risk noted by author - Clean audit reduces financial distress risk TICKER - DIRECTION | confidence: 0.60 | sentiment: +0.30 Speaker: u/GrahamGrade Thesis: 1. THE FACT: INGR has P/E 10.3, P/B 1.54, current ratio 2.66, 29-year dividend streak, ROIC 15.5% vs 10% target. It is a B2B ingredient supplier with consistent profitability. 2. THE BRIDGE: Steady earnings, high ROIC, and dividend history suggest durable competitive advantage. The low P/E and moderate P/B align with Graham’s margin-of-safety criteria.

u/GrahamGrade · Reddit — r/ValueInvesting · June 10, 2026 at 03:56 · ⬆ 15 pts · 💬 6 comments | View on Reddit ↗

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Summary

Post describes a Graham-style screen that found only two stocks passing all criteria: CCS (Century Communities) and INGR (Ingredion).
Author highlights that homebuilders appear cheap on trailing P/E but face margin compression, Chinese ADRs fail due to VIE structure risk, and CALM’s low P/E is driven by abnormal egg prices.
Quality assessment: This is well-reasoned value screening with clear explanation of why certain stocks are rejected, making it solid DD rather than noise.

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