Terry Smith: Quality at fair price
A screener inspired by the work of Terry Smith, founder of Fundsmith. The screen finds quality companies while also taking into account a fair pricing. The output is meant to be investigated deeper for long term buy and hold.
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FCF growth 5Y>=0%
In the last 5 years the Free Cash Flow has grown
Interest Converage>=10
The interest coverage is least 10
GICS: Industrials, Consumer Discretionary, Consumer Staples, Health Care, Information Technology, Communication Services, Utilities
Exclude low profitability industries
OM>=20%
An operating margin of at least 20%
Market Cap: At least Small (300M+)
Avoid very small caps
ROCE(5y)>=15%
A 5 year average ROCE of at least 15%
P/FCF<=30
An fcf yield of at least 3.33%
Cash Conversion>=90%
At least 90% of EBITDA is converted into cash flow
GM>=55%
A gross margin of at least 55%
Debt/FCF<=5
The debt is less than 5 times the Free Cash Flow
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.