Terry Smith: Quality at fair price

Terry Smith: Quality at fair price Image
RUN IN STOCK SCREENER
(38)

A screener inspired by the work of Terry Smith, founder of Fundsmith. The screen finds quality companies while also taking into account a fair pricing. The output is meant to be investigated deeper for long term buy and hold.


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Terry Smith Stock Picks Using ChartMill

In this video, I would like to introduce you to a new fundamental investment idea added in Chartmill 'Terry Smith Stock Picks', based on the strategy of Terry Smith, a respected investor and fund manager from the UK.

Stock Screener Settings

FCF growth 5Y>=0%

In the last 5 years the Free Cash Flow has grown

P/FCF<=30

An fcf yield of at least 3.33%

Cash Conversion>=90%

At least 90% of EBITDA is converted into cash flow

OM>=20%

An operating margin of at least 20%

Interest Converage>=10

The interest coverage is least 10

ROCE(5y)>=15%

A 5 year average ROCE of at least 15%

Debt/FCF<=5

The debt is less than 5 times the Free Cash Flow

GM>=55%

A gross margin of at least 55%

Market Cap: At least Small (300M+)

Avoid very small caps

GICS: Industrials, Consumer Discretionary, Consumer Staples, Health Care, Information Technology, Communication Services, Utilities

Exclude low profitability industries

RUN
Chart Settings

Long term chart

Regional Run

Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.