Criteria to screen for quality stocks
- Revenue growth > 5%
- Earnings growth > 7%
- FCF / earnings > 80%
- ROIC > 15%
- Net debt / FCFF < 5
- Debt/equity < 80%
Here are 15 Quality Stocks you should know:
- Revenue growth > 5%
- Earnings growth > 7%
- FCF / earnings > 80%
- ROIC > 15%
- Net debt / FCFF < 5
- Debt/equity < 80%
Here are 15 Quality Stocks you should know:
1. Apple ($AAPL)
Apple is the largest company in the world manufacturing smartphones, personal computers, and tablets. 18% of all new phones sold are iPhones.
- FCF Margin: 28.3%
- ROIC: 48.8%
- FCF Yield: 3.5%
- Exp. yearly FCF growth (3 yr): 5.7%
- CAGR since IPO: 19.5%
Apple is the largest company in the world manufacturing smartphones, personal computers, and tablets. 18% of all new phones sold are iPhones.
- FCF Margin: 28.3%
- ROIC: 48.8%
- FCF Yield: 3.5%
- Exp. yearly FCF growth (3 yr): 5.7%
- CAGR since IPO: 19.5%
2. Microsoft ($MSFT)
Microsoft operates as a software company. Word, Excel, β¦ are all applications of Microsoft. Microsoft is also active in cloud storage.
- FCF Margin: 32.3%
- ROIC: 28.1%
- FCF Yield: 2.6%
- Exp. yearly FCF Growth (3 yr): 12.3%
- CAGR since IPO: 22.7%
Microsoft operates as a software company. Word, Excel, β¦ are all applications of Microsoft. Microsoft is also active in cloud storage.
- FCF Margin: 32.3%
- ROIC: 28.1%
- FCF Yield: 2.6%
- Exp. yearly FCF Growth (3 yr): 12.3%
- CAGR since IPO: 22.7%
3. Monster Beverage ($MNST)
Monster Beverage markets and distributes energy drinks. Monster Beverage is the best-performing stock within the S&P 500 since 2000.
- FCF margin: 20.1%
- ROIC: 18.5%
- FCF yield: 3.7%
- Exp. yearly FCF growth (3 yr): 16.3%
- CAGR since IPO: 19.3%
Monster Beverage markets and distributes energy drinks. Monster Beverage is the best-performing stock within the S&P 500 since 2000.
- FCF margin: 20.1%
- ROIC: 18.5%
- FCF yield: 3.7%
- Exp. yearly FCF growth (3 yr): 16.3%
- CAGR since IPO: 19.3%
4. Alphabet ($GOOGL)
Everyone knows Google. Charlie Munger once stated that Alphabet has one of the widest moats he has ever seen.
- FCF Margin: 26.0%
- ROIC: 23.9%
- FCF Yield: 3.6%
- Exp. yearly FCF Growth (3 yr): 10.2%
- CAGR since IPO: 22.7%
Everyone knows Google. Charlie Munger once stated that Alphabet has one of the widest moats he has ever seen.
- FCF Margin: 26.0%
- ROIC: 23.9%
- FCF Yield: 3.6%
- Exp. yearly FCF Growth (3 yr): 10.2%
- CAGR since IPO: 22.7%
5. Visa ($V)
Together with Mastercard, Visa dominates the market for digital payments. Electronic payments are in a strong secular trend, giving tailwinds to Visa.
- FCF margin: 61.0%
- ROIC: 24.5%
- FCF yield: 3.7%
- Exp. yearly FCF growth (3 yr): 18.2%
- CAGR since IPO: 22.8%
Together with Mastercard, Visa dominates the market for digital payments. Electronic payments are in a strong secular trend, giving tailwinds to Visa.
- FCF margin: 61.0%
- ROIC: 24.5%
- FCF yield: 3.7%
- Exp. yearly FCF growth (3 yr): 18.2%
- CAGR since IPO: 22.8%
6. Evolution AB ($EVO)
Evolution AB operates as a gaming company. The Company delivers fully integrated B2B live casino solutions to online casino operators.
- FCF Margin: 52.9%
- ROIC: 21.5%
- FCF Yield: 6.7%
- Exp. yearly FCF growth (3 yr): 14.6%
- CAGR since IPO: 72.3%7.
Evolution AB operates as a gaming company. The Company delivers fully integrated B2B live casino solutions to online casino operators.
- FCF Margin: 52.9%
- ROIC: 21.5%
- FCF Yield: 6.7%
- Exp. yearly FCF growth (3 yr): 14.6%
- CAGR since IPO: 72.3%7.
7. Nvidia ($NVDA)
Nvidia is known for developing integrated circuits, which are used in everything from electronic game consoles to personal computers.
- FCF margin: 30.2%
- ROIC: 18.7%
- FCF yield: 2.5%
- Exp. yearly FCF growth (3 yr): 25.2%
- CAGR since IPO: 31.6%
Nvidia is known for developing integrated circuits, which are used in everything from electronic game consoles to personal computers.
- FCF margin: 30.2%
- ROIC: 18.7%
- FCF yield: 2.5%
- Exp. yearly FCF growth (3 yr): 25.2%
- CAGR since IPO: 31.6%
8. Accenture ($ACN)
Accenture is a consultancy company with management and technology consulting services and solutions.
- FCF Margin: 14.3%
- ROCE: 32.1%
- FCF Yield: 4.1%
- Exp. yearly FCF Growth (3 yr): 7.6%
- CAGR since IPO: 16.4%
Accenture is a consultancy company with management and technology consulting services and solutions.
- FCF Margin: 14.3%
- ROCE: 32.1%
- FCF Yield: 4.1%
- Exp. yearly FCF Growth (3 yr): 7.6%
- CAGR since IPO: 16.4%
9. Old Dominion Freight Line ($ODFL)
ODFL is the 4th largest less-than-truckload carrier in the US. It's one of the most efficient providers in the industry.
- FCF margin: 12.6%
- ROIC: 36.8%
- FCF yield: 2.2%
- Exp. yearly FCF growth (3 y): 2.8%
- CAGR since IPO: 19.8%
ODFL is the 4th largest less-than-truckload carrier in the US. It's one of the most efficient providers in the industry.
- FCF margin: 12.6%
- ROIC: 36.8%
- FCF yield: 2.2%
- Exp. yearly FCF growth (3 y): 2.8%
- CAGR since IPO: 19.8%
10. Adobe ($ADBE)
Adobe is a true compounding stock active in computer software products and technologies allowing users to express information across all media.
- FCF margin: 42.1%
- ROIC: 26.4%
- FCF yield: 2.9%
- Exp. yearly FCF growth (3 yr): 24.3%
- CAGR since IPO: 17.6%
Adobe is a true compounding stock active in computer software products and technologies allowing users to express information across all media.
- FCF margin: 42.1%
- ROIC: 26.4%
- FCF yield: 2.9%
- Exp. yearly FCF growth (3 yr): 24.3%
- CAGR since IPO: 17.6%
11. Synopsys ($SNPS)
Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products.
- FCF margin: 31.5%
- ROIC: 16.7%
- FCF yield: 1.4%
- Exp. yearly FCF growth (3 yr): 24.0%
- CAGR since IPO: 12.8%
Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products.
- FCF margin: 31.5%
- ROIC: 16.7%
- FCF yield: 1.4%
- Exp. yearly FCF growth (3 yr): 24.0%
- CAGR since IPO: 12.8%
12. InMode ($INMD)
InMode develops medical devices, manufacturing platforms that harness novel radio-frequency based technology.
- FCF Margin: 48.7%
- ROIC: 39.3%
- FCF yield: /
- Exp. yearly FCF growth (3 yr): 7.2%
- CAGR since IPO: 64.3%
InMode develops medical devices, manufacturing platforms that harness novel radio-frequency based technology.
- FCF Margin: 48.7%
- ROIC: 39.3%
- FCF yield: /
- Exp. yearly FCF growth (3 yr): 7.2%
- CAGR since IPO: 64.3%
13. OβReilly Automotive ($ORLY)
$ORLY is one of the largest sellers of aftermarket automotive parts, tools, and accessories.
- FCF Margin: 20.7%
- ROIC: 40.3%
- FCF yield: 3.6%
- Exp. yearly FCF Growth (3 yr): 3.8%
- CAGR since IPO: 21.6%
$ORLY is one of the largest sellers of aftermarket automotive parts, tools, and accessories.
- FCF Margin: 20.7%
- ROIC: 40.3%
- FCF yield: 3.6%
- Exp. yearly FCF Growth (3 yr): 3.8%
- CAGR since IPO: 21.6%
14. Novo Nordisk ($NOVO-B)
Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.
- FCF Margin: 34.6%
- ROIC: 62.0%
- FCF yield: 2.1%
- Exp. yearly FCF Growth (3 yr): 14.4%
- CAGR since IPO: 19.9%
Novo Nordisk is active in diabetes treatment. More and more people will suffer from diabetes due to our aging population and obesity.
- FCF Margin: 34.6%
- ROIC: 62.0%
- FCF yield: 2.1%
- Exp. yearly FCF Growth (3 yr): 14.4%
- CAGR since IPO: 19.9%
15. Mastercard ($MA)
Mastercard is a beautiful company. The company has a huge competitive advantage, high profit margins and a healthy balance sheet.
- FCF margin: 48.0%
- ROIC: 49.3%
- FCF yield: 3.1%
- Exp. yearly FCF growth (3 yr): 12.8%
- CAGR since IPO: 31.0%
Mastercard is a beautiful company. The company has a huge competitive advantage, high profit margins and a healthy balance sheet.
- FCF margin: 48.0%
- ROIC: 49.3%
- FCF yield: 3.1%
- Exp. yearly FCF growth (3 yr): 12.8%
- CAGR since IPO: 31.0%
That's it for today.
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