Europe Quality Stock Screener - Dec. 2023

Discover the ratings of my European quality stocks selection

I use this exact screener for my own investments. It is not a simple yes/no test: the goal is rather to identify which stocks will make it onto my shortlist. The ratings reflect my investment style to quickly identify what I am looking for in a stock. I am sharing it so you can compare with your investing process and highlight your decisions.

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 2 metrics: PE and FCF yield.

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.

The screener

For the moment, there are 30 European stocks in this screener. This is my own selection of the most qualitative stocks in Europe today.