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20 January 2023
By Maynard Paton
Today I have revisited a SharePad screen that applies two ratios favoured by ‘quality’ investors — operating margin and return on equity (ROE).
The exact criteria I re-used were:
- An operating margin (latest and 10-year average) of 20% or more, and;
- An ROE (latest and 10-year average) of 20% or more.
Any business with a margin and ROE consistently above 20% is probably quite special.
To narrow the field down further, I also sought companies that carried net borrowings of less than zero (i.e. net cash):
I selected Quartix because it was among the worst share-price performers during the last twelve months. Let’s take a closer look.