Quality Stocks Getting Stronger
Find companies with improving profit margins, returns on capital and free cash flow.
Quality stocks are businesses that become more profitable, generate more cash and use capital more efficiently. This page highlights companies where multiple quality signals are improving at the same time.
Penke idea: One improving number can be noise. Multiple improving numbers can reveal a real business trend. Use this page to find companies worth investigating further — not as blind buy signals.
| Company | Why It Appears | What The Numbers Mean | What Improved | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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$PARR USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 5.9% of revenue as profit. Operating Margin Core business keeps 8.0% before interest and taxes. Return on Equity Creates 8.2% profit on shareholder equity. Return on Invested Capital Earns 7.1% on invested capital. Free Cash Flow Margin Turns 3.2% of revenue into free cash. | Net Profit Margin Improved from -0.9% to 5.9% (+6.7 pts) Operating Margin Improved from 1.5% to 8.0% (+6.5 pts) Return on Equity Improved from -1.3% to 8.2% (+9.5 pts) Return on Invested Capital Moved from 0.014 to 0.071 (+415.1%) Free Cash Flow Margin Moved from -0.018 to 0.032 (+275.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$VRTX USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 35.5% of revenue as profit. Operating Margin Core business keeps 38.3% before interest and taxes. Return on Equity Creates 6.0% profit on shareholder equity. Return on Invested Capital Earns 10.2% on invested capital. Free Cash Flow Margin Turns 51.1% of revenue into free cash. | Net Profit Margin Improved from -10.9% to 35.5% (+46.3 pts) Operating Margin Improved from -8.6% to 38.3% (+47.0 pts) Return on Equity Improved from -2.0% to 6.0% (+8.0 pts) Return on Invested Capital Moved from -0.027 to 0.102 (+478.0%) Free Cash Flow Margin Moved from -0.247 to 0.511 (+306.4%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$CRDO USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 34.1% of revenue as profit. Operating Margin Core business keeps 32.3% before interest and taxes. Return on Equity Creates 7.8% profit on shareholder equity. Return on Invested Capital Earns 22.3% on invested capital. Free Cash Flow Margin Turns 38.4% of revenue into free cash. | Net Profit Margin Improved from 5.4% to 34.1% (+28.8 pts) Operating Margin Improved from 0.9% to 32.3% (+31.4 pts) Return on Equity Improved from 1.9% to 7.8% (+5.9 pts) Return on Invested Capital Moved from 0.026 to 0.223 (+745.2%) Free Cash Flow Margin Moved from -0.108 to 0.384 (+456.4%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$SIF USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 7.8% of revenue as profit. Operating Margin Core business keeps 8.5% before interest and taxes. Return on Equity Creates 4.8% profit on shareholder equity. Return on Invested Capital Earns 4.5% on invested capital. Free Cash Flow Margin Turns 15.6% of revenue into free cash. | Net Profit Margin Improved from 0.7% to 7.8% (+7.1 pts) Operating Margin Improved from -3.5% to 8.5% (+12.0 pts) Return on Equity Improved from 1.0% to 4.8% (+3.9 pts) Return on Invested Capital Moved from -0.012 to 0.045 (+467.9%) Free Cash Flow Margin Moved from 0.008 to 0.156 (+1,800.0%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$INCY USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 27.0% of revenue as profit. Operating Margin Core business keeps 23.7% before interest and taxes. Return on Equity Creates 7.5% profit on shareholder equity. Return on Invested Capital Earns 13.6% on invested capital. Free Cash Flow Margin Turns 30.8% of revenue into free cash. | Net Profit Margin Improved from -0.3% to 27.0% (+27.3 pts) Operating Margin Improved from 3.0% to 23.7% (+20.6 pts) Return on Equity Improved from -0.3% to 7.5% (+7.8 pts) Return on Invested Capital Moved from 0.033 to 0.136 (+316.5%) Free Cash Flow Margin Moved from 0.049 to 0.308 (+535.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$VICR USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 32.5% of revenue as profit. Operating Margin Core business keeps 23.9% before interest and taxes. Return on Equity Creates 5.1% profit on shareholder equity. Return on Invested Capital Earns 8.6% on invested capital. Free Cash Flow Margin Turns 42.9% of revenue into free cash. | Net Profit Margin Improved from 6.1% to 32.5% (+26.5 pts) Operating Margin Improved from 3.9% to 23.9% (+20.1 pts) Return on Equity Improved from 1.0% to 5.1% (+4.1 pts) Return on Invested Capital Moved from 0.013 to 0.086 (+584.6%) Free Cash Flow Margin Moved from 0.128 to 0.429 (+235.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$TROO USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 99.3% of revenue as profit. Operating Margin Core business keeps 86.5% before interest and taxes. Return on Equity Creates 133.5% profit on shareholder equity. Return on Invested Capital Earns 126.7% on invested capital. Free Cash Flow Margin Turns 108.6% of revenue into free cash. | Net Profit Margin Improved from -53.5% to 99.3% (+152.7 pts) Operating Margin Improved from -60.3% to 86.5% (+146.8 pts) Return on Equity Improved from -80.6% to 133.5% (+214.0 pts) Return on Invested Capital Moved from -0.983 to 1.267 (+228.8%) Free Cash Flow Margin Moved from -0.690 to 1.086 (+257.5%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$FVRR USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 48.1% of revenue as profit. Operating Margin Core business keeps 46.4% before interest and taxes. Return on Equity Creates 3.1% profit on shareholder equity. Return on Invested Capital Earns 7.4% on invested capital. Free Cash Flow Margin Turns 189.3% of revenue into free cash. | Net Profit Margin Improved from 1.8% to 48.1% (+46.3 pts) Operating Margin Improved from -3.3% to 46.4% (+49.7 pts) Return on Equity Improved from 1.0% to 3.1% (+2.2 pts) Return on Invested Capital Moved from -0.025 to 0.074 (+393.3%) Free Cash Flow Margin Moved from 0.246 to 1.893 (+670.3%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$LKNCY USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 61.1% of revenue as profit. Operating Margin Core business keeps 40.4% before interest and taxes. Return on Equity Creates 68.7% profit on shareholder equity. Return on Invested Capital Earns 66.0% on invested capital. Free Cash Flow Margin Turns 33.7% of revenue into free cash. | Net Profit Margin Improved from -46.8% to 61.1% (+107.9 pts) Operating Margin Improved from -18.4% to 40.4% (+58.8 pts) Return on Equity Improved from -54.3% to 68.7% (+123.0 pts) Return on Invested Capital Moved from -0.356 to 0.660 (+285.3%) Free Cash Flow Margin Moved from -0.191 to 0.337 (+276.6%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$TUYA USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 37.5% of revenue as profit. Operating Margin Core business keeps 47.6% before interest and taxes. Return on Equity Creates 1.5% profit on shareholder equity. Return on Invested Capital Earns 26.8% on invested capital. Free Cash Flow Margin Turns 61.0% of revenue into free cash. | Net Profit Margin Improved from -0.6% to 37.5% (+38.2 pts) Operating Margin Improved from -4.7% to 47.6% (+52.2 pts) Return on Equity Improved from -0.2% to 1.5% (+1.6 pts) Return on Invested Capital Moved from -0.073 to 0.268 (+468.0%) Free Cash Flow Margin Moved from 0.200 to 0.610 (+204.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
 Don't miss 490 companies worth a closer look. Unlock the full list before hidden risks cost you money or stronger businesses pass you by. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||