If you could only use one indicator in a company's financial statement to determine it as a worthy investment, the EPS would be it, correct?

Also, higher the EPS ratio the better, right?

I ask because while I thought I knew, the EPS is also misleading because it takes in account the preferred dividend yield, which is pretty important for many investors. I was looking at Deutsche Bank and they had a EPS of 22. I thought, "damn, that's pretty good!" But then I looked at their yield and it's 4.xx%. While it's not bad, it's not fantastic either, especially given the high EPS rating of 22.

Someone please clarify. Thanks.

I am no expert on long-term investing by any mreans, but IMO......

I think if you plan on investing in companies, you're talking about a fundamental criterion(which is why I assumed you plan on more long-term type investing), while you're looking at EPS, you might as well look at the big 5 fundamentals in a company.

I guess that I am kind of expousing the 'rule #1' investor type of mentality.

I think if you were going to only look at only one, ROIC would be above EPS IMO? WHile you're at it, might as well look at Cash, Equity and while some sites will do it for you, might as well calculate growth over the last 3,5 and 10 years(shoule be greater than 10%).

a dividend yield is no reason to go long in a company.

If you could only use one indicator in a company's financial statement to determine it as a worthy investment, the EPS would be it, correct?

Also, higher the EPS ratio the better, right?

I ask because while I thought I knew, the EPS is also misleading because it takes in account the preferred dividend yield, which is pretty important for many investors. I was looking at Deutsche Bank and they had a EPS of 22. I thought, "damn, that's pretty good!" But then I looked at their yield and it's 4.xx%. While it's not bad, it's not fantastic either, especially given the high EPS rating of 22.

Someone please clarify. Thanks.

No. Never ever buy a stock based on one valuation. P/E is more useful anyway as a single indicator (price/EPS). Stick with a mutual fund or index fund and you'll be safer.