Shoe Carnival, Inc. (NASDAQ:SCVL)

Good F-score at inclusion, good shareholder yield, not overly expensive relative to intrinsic value and book value, high quality (Gross revenue to total assets)

Never been to a Shoe Carnival before but after a little research it appears this company provides both a unique shopping experience and value priced brand name products.

Couple things I really like:

1. New advertising campaign, aggressive expansion, and simultaneous closure of underperforming stores will increase both revenues and operational efficiency over the long term. They opened 39 stores last quarter which immediately contributed $10 million in revenue or over $250,000 per store.

2. Decent balance sheet with no short or LT debt to speak of. I would like to see a little more liquidity though. Cash and quick ratio are .54 and .74. Only when taking inventory into account do them seem liquid. Current ratio is 4.55.

3. I like their investment in IT and what it does for their business. They have a real time POS system that allows them to track performance of specific merchandise and advertise poorly performing items via an in-store microphone in real time. They have daily temporary sales that moves merchandise quickly.

They're a little pricy but I like them in the future. I hadn't even heard of them until now. It'll be interesting to see how their national expansion pans out.

Outperform - 2 to 4 years