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12 August 2023
By Maynard Paton
I have once again 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 persistent margin and ROE of at least 20% could be very special.
To narrow the field down further, I also sought companies that carried net cash (i.e. net borrowings excluding IFRS 16 finance leases of less than zero):
This time the filter yielded 20 matches, including Games Workshop, Hargreaves Lansdown, Plus 500 and Polar Capital.
I selected Record because it was among the better share-price performers of the last twelve months that I had not already studied for SharePad. Let’s take a closer look.
Read my full RECORD article for SharePad >>Maynard Paton
