Compounding Quality Screener Stock Screen

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A screen as described by Compounding Quality (@QCompounding), a former professional investor. The screen focusses on quality stocks with low capital intensity and generating increasingly large free cash flows. A detailed description and discussion of the screen can be found in the linked article.

Long

Fundamental Analysis

Long Term Investing

Quality Investing

Shared by user chartmill - 2 years ago

Finding Quality Compounders with Compounding Quality

How can we find the best companies in the world? This screener would be a good start: finding the best compounding quality companies, as described by Compounding Quality.

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When the market takes a hit, fear and uncertainty dominate the headlines. Many traders rush to the sidelines, worried about further losses. But smart investors know that stock market corrections aren’t a time to panic - they’re a time to prepare.

Stock Screener Settings

ROCE(3y)>=20%

Great capital allocation: high ROCE

FCFM>=10%

High Profitability: high FCF margin

(eps5yGrowth>7)

Secular Trend: at least 7% earnings growth

PM>=10%

High Profitability: high profit margin

Cap/Sales(3y)<=5%

Low Capital Intensity

Revenue growth 5Y>=5%

Secular Trend: at least 5% revenue growth

GM>=40%

A gross margin of at least 40%

ROIC(3y)>=15%

Great capital allocation: high ROIC

RUN

Chart Settings

Long term chart

Regional Run

Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.