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20 November 2019
By Maynard Paton
Today I have revisited a share screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE).
The exact criteria I re-used were:
1) An operating margin (latest and 10-year average) of 20% or more, and;
2) An ROE (latest and 10-year average) of 20% or more.
This time I have pinpointed Dotdigital, a £265 million software business that is blessed with a 30% operating margin and a 30% ROE.