I scored the S&P 500 based on 10 metrics for quality and growth

Long_Equity
03-28

I scored the S&P 500 based on 10 metrics for quality and growth.

Here's how they rank.

And here are the thresholds:

• 5yr FCF CAGR: >15%

• 5yr FCF RSq: >0.90

• 5yr FCF margin expansion: >0%

• FCF ROC: >15%

• 5yr min. FCF ROC: >15%

• Current ROC - 5yr min ROC: >0%

• Capex / OCF: <10%

• SBC / OCF: <10%

• 5yr change in share count: <0%

• Interest expense / Op. profit: <5% $MasterCard(MA)$ $NVR Inc(NVR)$ $Apple(AAPL)$ $Cadence Design(CDNS)$ $Expeditors(EXPD)$ $Future FinTech Group Inc.(FTFT)$ $Lam Research(LRCX)$ $Mettler-Toledo(MTD)$ $Robert Half(RHI)$ $Rollins(ROL)$ $Applied Materials(AMAT)$ $Broadcom(AVGO)$ $Fair Isaac(FICO)$ $KLA-Tencor(KLAC)$ $MSCI Inc(MSCI)$ $O'Reilly(ORLY)$ $Old Dominion Freight Lines(ODFL)$ $Pool(POOL)$ $ulta beauty(ULTA)$ $Valero(VLO)$ $VeriSign(VRSN)$ $Vertex Pharmaceuticals(VRTX)$

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Unfortunately valuation is very subjective and divisive. I prefer to focus on assessing quality and let others reach their own view on whether something is trading at fair value.

What metric let $Visa(V)$ down?

Gowth rate and linearity of FCF growth rate. Still very highly ranked. If I expended the the size of the image you would see it!

https://twitter.com/long_equity/status/1772983752043438085

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  • JackJackson
    ·03-28
    Appreciate your sharing, very useful information for us investors!
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