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31 January 2019
By Maynard Paton
For this SharePad search I demanded companies that offered a history of fantastic earnings growth alongside a relatively reasonable valuation.
To narrow the field down further, I wanted only cash-rich companies that paid a dividend.
The exact criteria I used were:
- Annualised earnings per share growth of at least 25% during the last five years;
- A forecast P/E of no more than 20;
- Net borrowing of zero or less (i.e. a net cash position), and;
- A dividend yield greater than zero.
I added a fifth criteria to exclude house builders:
- Not a member of the Home Construction sub-sector.
I don’t really class house builders as super-growth businesses, and no doubt they will crop up in future screens anyway. (Eight house builders were excluded from this search.)
Games Workshop stood out among the 23 matches.
I chose this company because:
- I bought the shares at £8, and;
- I have visited the company’s HQ and spoken at length with the executive management.
Read my full Games Workshop article for SharePad.
Maynard Paton
