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Modellportfölj

Stock portfolio: Quality

Picture of Johan Widmark

Johan Widmark

The Incirrata Quality share portfolio is based on a quantitative screening to capture high-quality companies with stable growth and profitability, with a healthy balance sheet and return on capital, with an acceptable cash flow valuation.

Quality company
at the right price

The Quality share portfolio is based on a quantitative screening to capture high-quality companies with stable growth and profitability, with healthy balance sheets and return on capital.

To ensure that we are not paying too much for these quality companies, we apply a filter with a requirement of 2-3% FCF yield (cash flow as a percentage of market capitalization).

Screening criteria

The criteria for the companies in Quality are

Stable growth: Three-year average sales growth over 8%

Stable profit growth: Three-year average earnings growth over 10%

Healthy balance sheet: Net debt / EBITDA < 3x

Good profitability: EBIT margin above 10%

Good yield: Return on invested capital (ROIC) >15%

Acceptable valuation of cash flows: FCF yield > 2%

Development

The returns shown are based on model calculations and do not reflect actual results. Historical returns are no guarantee of future returns. See full disclaimer below. Source: Koyfin, Incirrata.

For more information

Kontakta gärna för mer information på

johan@incirrata.se or 0739196641

Get news about research and portfolio changes

Contact

Johan Widmark

Phone: +46 73 919 66 41 

Email: johan@incirrata.se

Disclaimer

This marketing document has been issued by Incirrata AB. It is not intended to be distributed to, published for, made available to or used by individuals or legal entities that are nationals or residents of any state, country or jurisdiction where applicable laws and regulations prohibit its distribution, publication, making available or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is for informational purposes only and shall not be construed as an offer, a solicitation or a recommendation to subscribe, purchase, sell or hold any security or financial instrument or to enter into any other transaction, such as the provision of investment advice or services, or as a contract document. Nothing in this document constitutes investment, legal, tax or accounting advice or a guarantee that any investment or strategy is suitable or appropriate for an investor's specific and individual circumstances, nor does it constitute personal investment advice to any investor.

This document reflects information, opinions and comments from Incirrata AB. at the time of its publication, which are subject to change without notice. The opinions and comments expressed by the authors in this document reflect their current views and may differ from conclusions in Incirrata AB's services or products, or third parties, who may have reached other conclusions. Market valuations, terms and calculations stated here are estimates only. The information provided comes from sources believed to be reliable, but Incirrata AB does not guarantee its completeness, accuracy, reliability or timeliness. Historical performance does not provide an indication of or guarantee of current or future performance. Incirrata AB assumes no responsibility for any loss arising from the use of this document.