39 Australian Stocks Under the Microscope
Using my scoring system
Australia’s stock market offers a diverse range of investment opportunities, from blue-chip giants to hidden small-cap gems. But with so many options, how do you identify the best stocks to invest in?
In this article, I have selected 39 Australian stocks using my scoring system to provide a clear assessment of each one. This score will help you focus on the companies that best match your investment style.
If you like screeners, you can find, you can find my US and Europe Quality Screeners just here
The different scores
The screener uses 5 different categories. Each category has different metrics, mainly quantitative. Each metric gives a score depending on thresholds I defined, once again to fit my investment style.
Growth. The growth category uses 4 metrics:
Past and future revenue growth
Past and future EPS growth
Quality. The quality category uses 3 metrics: net profit margin, ROE and cash/debt ratio vs the EBITDA.
Valuation. For valuation, I use 3 metrics: PE, FCF yield and PEG.
Shareholder return. This category shows if the company is shareholder oriented. I look at 3 metrics: dividend yield, dividend growth and buybacks/dilution in outstanding shares.
Market. This is the only qualitative metrics. It represents the value of being present in the market and the company’s strength in it. It is a personal appreciation.
Keep in mind that this scoring system isn’t designed to pinpoint the absolute best opportunities. To do that, you will need to dive deeper, thoroughly analyze the market, and assess key metrics. Instead, this system helps you identify stocks within your investable universe while highlighting their main characteristics (growth, valuation, quality, …) as outlined in this article.
The screener
In this screener, I have selected 39 of the highest-quality companies from Europe, using the latest available data for scoring and ranking. The term 'quality' is not strictly defined here; it may refer to exceptional metrics, a robust business model, market dominance, or a strong competitive advantage.
Below are 8 stocks available for free subscribers. Access the full screener behind the paywall.
While this newsletter provides valuable content for free subscribers, becoming a paid subscriber unlocks even greater benefits to help you gain an edge in the market.
Here is why upgrading to a paid subscription is worth it:
Access exclusive content. Dive deeper with detailed analyses, advanced insights, and premium research not available to free subscribers
Follow my portfolio. Gain exclusive access to my portfolio, including monthly updates, tracking my moves, and watchlists
Discover more stock ideas. Explore in-depth stock ideas, technical analyses, and strategies tailored to uncover hidden opportunities
Support this newsletter. Your subscription directly supports the creation of high-quality, valuable content to help you achieve your investment goals
Upgrade today and take your investing knowledge and performance to the next level!
Keep reading with a 7-day free trial
Subscribe to Quality Stocks to keep reading this post and get 7 days of free access to the full post archives.