7 simple metrics to eliminate 99% of stocks:
Growth In
Revenue > 12-15%
Net Income> 15%
Earnings Per Share >12-15%
Free Cash Flow > 12-15%
Shares Outstanding < 5%
Return on Invested Capital >15%
Total Debt < 2-4x FCF
Here 6 companies that meet these criteria:
1. Teqnion $TEQ.ST
2. Evolution Ab $EVO $EVO.ST $EVVTY
3. Tencent $TCEHY $0700.HK
4. Artizia $ATZ.TO $ATZAF
5. LIFCO $LIFCO-B.ST
6. Copart $CPRT
Remember there are always exceptions to the rules as long as you understand the business very well.
For instance, one of these metrics might fail, look into why that is, is it a short-term problem?
I own 4 of these, what would you add?
If you want to learn:
• More about this framework
• How to create the graphs I have listed
• Learn more about creating your own benchmarks
Then check out my free ebook ⤵️
http://5minutestono.com
That's a wrap!
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