Discover the true quality of the stocks you follow.
Evaluate your stocks with our 1-5 Quality Rating, scoring companies on People, Business, and Financials, so you can easily spot strengths and weaknesses.
People
Business
Financials
Does the business have favourable long-term prospects?
Does the business have favourable long-term prospects?
3
5
Total Score
Total score
3
5
Summary
Business Scalability
Market Stability
Competitive Advantage
Operational Stability
Sustainability Impact
Business Score Summary
2024-10-01
Last updated: 2024-10-01
Positives
Negatives
Our Quality Rating answers all the questions about the company.
Our Quality Rating system evaluates companies across People, Business, and Financials, providing you with a simple yet powerful tool for assessing their overall quality.
Want to know more, see our Pricing plans
Business Scalability
Is the business model repeatable and scalable?
3
Major portion of existing revenues is recurring
Major portion of existing revenues is recurring
High Revenue Visibility
+1
Meaningful reinvestment opportunities
Meaningful reinvestment opportunities
Large Optionality
+1
Able to scale up without expensive reinvestment
Able to scale up without expensive reinvestment
Asset-light Business
0
Expected to grow five-fold in a decade
Expected to grow five-fold in a decade
Long Growth Runway
0
Successfully expanded into new geographic markets
Successfully expanded into new geographic markets
International Track Record
+1
Generates no profits and negative cash flow
Generates no profits and negative cash flow
Unproven Business Model
0
Market Stability
Is the business exposed to favourable market dynamics?
2
Benefit from secular tailwinds that support growth
Benefit from secular tailwinds that support growth
Long-term Growth Trend
+1
Industry’s 10-year median ROIC is greater than 15%
Industry’s 10-year median ROIC is greater than 15%
Highly Profitable Industry
0
Products that last for more than a decade
Products that last for more than a decade
Long Product Cycles
+1
Few players dominate the entire market
Few players dominate the entire market
Limited Competition
0
?
?
Core business unlikely to be disrupted
Core business unlikely to be disrupted
Disruption-resilient Business
0
Market surrounded by hype and aggressive investment
Market surrounded by hype and aggressive investment
Oversupplied Market
0
Competitive Advantage
Is this a defensible business that can stay competitive?
3
Positioned to capture the greatest value in the market
Positioned to capture the greatest value in the market
Category Leadership
+1
Returns on invested capital consistently exceed the cost of capital
Returns on invested capital consistently exceed the cost of capital
Consistent Value Creation
0
Easy to identify sustainable competitive advantages
Easy to identify sustainable competitive advantages
Visible Moat
+1
?
?
Competitive advantage that will last for decades
Competitive advantage that will last for decades
Wide Moat
0
Historical price increases above inflation without customer churn
Historical price increases above inflation without customer churn
Pricing Power
+1
Signs of weakening competitive advantage
Signs of weakening competitive advantage
Shrinking Moat
0
Operational Stability
Does the business have limited exposure to significant operational risks?
5
Diversified and wide revenue base
Diversified and wide revenue base
Low Concentration Risk
+1
Earnings largely unaffected by commodity prices
Earnings largely unaffected by commodity prices
Low Commodity Exposure
+1
Operates with minimal interference from regulators
Operates with minimal interference from regulators
Low Regulatory Risk
+1
Independent of key individuals for its success
Independent of key individuals for its success
Key People Independence
+1
Limited cyclical or capital markets dependencies
Limited cyclical or capital markets dependencies
Defensive Business
+1
Fair chance that core business may fail
Fair chance that core business may fail
Catastrophe Risk
0
Sustainability Impact
Does the business operate in a socially and environmentally responsible way?
5
Products contribute to the greater good
Products contribute to the greater good
Non-controversial Products
+1
Proactively promoting environmental sustainability
Proactively promoting environmental sustainability
Environmental Stewardship
+1
Working closely with customers to innovate
Working closely with customers to innovate
Customer-driven Innovation
+1
Employees enjoy working for the company
Employees enjoy working for the company
Good Employee Relations
+1
Customers and suppliers feel they get good value
Customers and suppliers feel they get good value
Value-centric Business
+1
Heightened environmental or ethical risks or recent issues
Heightened environmental or ethical risks or recent issues
Sustainability-related Incidents
0
