Terry Smith: Quality at fair price
Terry Smith Portfolio Metrics To Find Quality Stocks
Finding Quality Stocks Using Terry Smith Portfolio Metrics
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Terry Smith Stock Picks Using ChartMill
In this video, I would like to introduce you to a new fundamental investment idea added in Chartmill 'Terry Smith Stock Picks', based on the strategy of Terry Smith, a respected investor and fund manager from the UK.
FCF growth 5Y>=0%
In the last 5 years the Free Cash Flow has grown
GM>=55%
A gross margin of at least 55%
Cash Conversion>=90%
At least 90% of EBITDA is converted into cash flow
OM>=20%
An operating margin of at least 20%
Interest Converage>=10
The interest coverage is least 10
P/FCF<=30
An fcf yield of at least 3.33%
Market Cap: At least Small (300M+)
Avoid very small caps
GICS: Industrials, Consumer Discretionary, Consumer Staples, Health Care, Information Technology, Communication Services, Utilities
Exclude low profitability industries
ROCE(5y)>=15%
A 5 year average ROCE of at least 15%
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.