Compounding Quality
Compounding Quality

@QCompounding

19 Tweets 7 reads Jan 14, 2024
Companies that tend to perform really well on the stock market?
Clear market leaders that are very profitable.
Here are 15 Quality Stocks you should know:
1. S&P Global
S&P Global provides clients with financial information services (credit ratings, benchmarks, and analytics) in the capital and commodity markets.
- Net Debt/Free Cash Flow: 2.4%
- FCF Margin: 29.1%
- ROIC: 28.0%
- FCF Yield: 2.9%
- Expected LT Growth: 12.2%
2. Novo Nordisk
Novo Nordisk is a dominant market leader in diabetes care. Due to the aging population, more and more people will suffer from diabetes in the future.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 31.4%
- ROIC: 77.6%
- FCF Yield: 2.5%
- Exp. LT Growth: 18.8%
3. ASML
ASML is a monopolistic player in semiconductor chip machines through lithography.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 30.2%
- ROIC: 51.3%
- FCF Yield: 3.0%
- Exp. LT Growth: 20.6%
4. Mastercard
Mastercard provides financial transaction processing services for credit and debit cards. Together with Visa, Mastercard dominates this attractive market.
- Net Debt/FCF: 0.6x
- FCF Margin: 44.7%
- ROIC: 85.3%
- FCF Yield: 2.9%
- Exp. LT Growth: 20.9%
5. Microsoft
Microsoft has a very wide moat in software applications, cloud storage, and advanced security solutions.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 34.2%
- ROIC: 48.6%
- FCF Yield: 2.9%
- Exp. LT Growth: 15.4%
6. Blackrock
Do you own an ETF from iShares? That’s a Blackrock product. BlackRock provides investment management services to institutional clients and retail investors.
- Net Debt/FCF: 68.5%
- FCF Margin: 29.0%
- ROIC: 14.9%
- FCF Yield: 4.7%
- Exp. LT Growth: 9.2%
7. Thermo Fisher
Thermo Fisher Scientific manufactures scientific instruments, consumables, and chemicals. The company has a wide moat and operates at attractive margins.
- Net Debt/FCF: 3.6x
- FCF Margin: 15.5%
- ROIC: 13.0%
- FCF Yield: 4.0%
- Exp. LT Growth: 9.8%
8. Automatic Data Processing
ADP is a global provider of business outsourcing solutions. ADP’s services include a wide range of human resource, payroll, and tax solutions.
- Net Debt/FCF: 0.2x
- FCF Margin: 18.9%
- ROIC: 6.4%
- FCF Yield: 3.9%
- Exp. LT Growth: 13.6%
9. Zoetis
Zoetis is active in the market for animal health medicines and vaccines. More and more people are treating their pets as a full family member.
- Net Debt/FCF: 2.3x
- FCF Margin: 26.2%
- ROIC: 32.3%
- FCF Yield: 2.8%
- Exp. LT Growth: 10.5%
10. Apple
Apple is the largest company in the world that manufactures, and markets smartphones, personal computers and tablets. 18% of all new phones sold are iPhones.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 25.3%
- ROIC: 58.9%
- FCF Yield: 3.6%
- Exp. LT Growth: 6.1%
11. Sonova
Together with Demant, SOON is a market leader in the market for premium hearing aids. Due to our aging population, more and more people are suffering from hearing problems.
- Net Debt/FCF: 1.9x
- FCF Margin: 17.1%
- ROIC: 5.5%
- FCF Yield: 3.6%
- Exp. LT Growth: 6.5%
12. Visa
Everyone knows this company. The secular trends toward electronic payments gives Visa a lot of tailwinds. 
- Net Debt/FCF: 0.1x
- FCF Margin: 52.0%
- ROIC: 75.9%
- FCF Yield: 3.8%
- Exp. LT Growth: 13.9%
13. Adobe
Adobe is a multinational software company known for its creative software products, including Photoshop, Illustrator, and Premiere.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 28.0%
- ROIC: 119.5%
- FCF Yield: 3.0%
- Exp. LT Growth: 14.3%
14. Danaher
Danaher is a great acquirer active in medical instruments and life sciences. Furthermore, they also provide COVID tests.
- Net Debt/FCF: 1.0x
- FCF Margin: 22.6%
- ROIC: 7.7%
- FCF Yield: 3.5%
- Expected LT Growth: 1.4%
15. Copart
Copart provides vehicle suppliers, primarily insurance companies, with a variety of services to process and sell salvage vehicles through auctions.
- Net Debt/FCF: Net Cash Position
- FCF Margin: 32.0%
- ROIC: 30.8%
- FCF Yield: 3.1%
- Exp. LT Growth: 15.0%
That's it for today. Data were provided by Finchat (@BradoCapital)
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