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Donald David Courtney's avatar

Your very fine articl began:

“ We used the following criteria to screen for High Quality Cannibal Stocks:

ROIC > 15%

Profit margin > 10%

EPS growth past 5 years > 10%

Decrease in shares outstanding past 10 years > 30% “

However, your description of the elements was different…containing five elements.

Please comment.

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Compounding Quality's avatar

Hi Daniel,

We screened for Quality Cannibal stocks as follows:

- ROIC > 15%

- Profit margin > 10%

- EPS growth past 5 years > 10% per year

- Decrease in shares outstanding past 10 years > 30%

After that, we made a list with 15 companies which matched the criteria above.

In the list, we used 5 (other) criteria to give you an indication about the valuation, profitability and capital allocation skills of the company.

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