After some strong price movements and reports, we are now replacing some of the stocks in the screened model portfolio Quality. The changes are therefore due to some stocks in the portfolio no longer meeting the criteria and therefore leaving, while some new names that do are entering the portfolio.
Out of the portfolio goes Lundin Gold, after a very strong contribution to the portfolio with an increase of 85%. At the same time, it also leaves BTS Group, which has backed 6% during its time in the portfolio. The company will release its report on Friday.
Instead, we take in Clas Ohlson, Bahnhof and Paradox Interactive in the portfolio as these three now meet the criteria for the Quality model portfolio. See details about the new companies below.
The criteria for Model Portfolio 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 return: Return on invested capital (ROIC) >15%
– Acceptable valuation of cash flows: > 2% FCF yield
Model portfolio Quality up 5.3% this year



