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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$BB USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 12.9% of revenue as profit. Operating Margin Core business keeps 7.2% before interest and taxes. Return on Equity Creates 2.6% profit on shareholder equity. Return on Invested Capital Earns 0.9% on invested capital. Free Cash Flow Margin Turns 12.3% of revenue into free cash. | Net Profit Margin Improved from -0.2% to 12.9% (+13.1 pts) Operating Margin Improved from 1.4% to 7.2% (+5.8 pts) Return on Equity Improved from -0.1% to 2.6% (+2.7 pts) Return on Invested Capital Moved from 0.001 to 0.009 (+1,301.0%) Free Cash Flow Margin Moved from -0.045 to 0.123 (+373.6%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$BEIGF USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 10.6% of revenue as profit. Operating Margin Core business keeps 14.9% before interest and taxes. Return on Equity Creates 3.5% profit on shareholder equity. Return on Invested Capital Earns 3.1% on invested capital. Free Cash Flow Margin Turns 27.7% of revenue into free cash. | Net Profit Margin Improved from -4.6% to 10.6% (+15.1 pts) Operating Margin Improved from -2.8% to 14.9% (+17.7 pts) Return on Equity Improved from -1.4% to 3.5% (+4.9 pts) Return on Invested Capital Moved from -0.006 to 0.031 (+645.3%) Free Cash Flow Margin Moved from -0.121 to 0.277 (+328.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$SFD USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 6.8% of revenue as profit. Operating Margin Core business keeps 8.6% before interest and taxes. Return on Equity Creates 3.9% profit on shareholder equity. Return on Invested Capital Earns 3.1% on invested capital. Free Cash Flow Margin Turns 3.5% of revenue into free cash. | Net Profit Margin Improved from -3.1% to 6.8% (+10.0 pts) Operating Margin Improved from -3.4% to 8.6% (+12.0 pts) Return on Equity Improved from 0.1% to 3.9% (+3.9 pts) Return on Invested Capital Moved from -0.005 to 0.031 (+740.2%) Free Cash Flow Margin Moved from 0.007 to 0.035 (+384.8%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$CENX USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 21.9% of revenue as profit. Operating Margin Core business keeps 25.3% before interest and taxes. Return on Equity Creates 12.3% profit on shareholder equity. Return on Invested Capital Earns 11.9% on invested capital. Free Cash Flow Margin Turns 6.5% of revenue into free cash. | Net Profit Margin Improved from 2.7% to 21.9% (+19.3 pts) Operating Margin Improved from 4.1% to 25.3% (+21.1 pts) Return on Equity Improved from 2.4% to 12.3% (+9.9 pts) Return on Invested Capital Moved from 0.029 to 0.119 (+310.4%) Free Cash Flow Margin Moved from -0.010 to 0.065 (+766.6%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$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 3.1% 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 0.005 to 0.031 (+486.9%) Free Cash Flow Margin Moved from 0.128 to 0.429 (+235.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$DINO USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 5.7% of revenue as profit. Operating Margin Core business keeps 7.8% before interest and taxes. Return on Equity Creates 4.8% profit on shareholder equity. Return on Invested Capital Earns 3.9% on invested capital. Free Cash Flow Margin Turns 8.4% of revenue into free cash. | Net Profit Margin Improved from -0.3% to 5.7% (+6.0 pts) Operating Margin Improved from 0.0% to 7.8% (+7.7 pts) Return on Equity Improved from -0.2% to 4.8% (+5.1 pts) Return on Invested Capital Moved from -0.001 to 0.039 (+4,198.5%) Free Cash Flow Margin Moved from 0.025 to 0.084 (+232.1%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$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 1.8% 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 -0.008 to 0.018 (+318.4%) Free Cash Flow Margin Moved from 0.246 to 1.893 (+670.3%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$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 114.0% on invested capital. Free Cash Flow Margin Turns 93.7% 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 -0.909 to 1.140 (+225.4%) Free Cash Flow Margin Moved from -0.601 to 0.937 (+255.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$HEOL USA Business trend ⭐⭐⭐⭐⭐ Exceptional Signals: 5/5 improving | ✓ Profitability improving ✓ Capital efficiency improving ✓ Cash generation improving | Net Profit Margin Keeps 25.6% of revenue as profit. Operating Margin Core business keeps 10.9% before interest and taxes. Return on Equity Creates 11.6% profit on shareholder equity. Return on Invested Capital Earns 3.8% on invested capital. Free Cash Flow Margin Turns 24.0% of revenue into free cash. | Net Profit Margin Improved from -0.7% to 25.6% (+26.2 pts) Operating Margin Improved from -0.8% to 10.9% (+11.7 pts) Return on Equity Improved from -0.2% to 11.6% (+11.8 pts) Return on Invested Capital Moved from -0.004 to 0.038 (+954.1%) Free Cash Flow Margin Moved from -0.221 to 0.240 (+208.7%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$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 1.8% 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 -0.012 to 0.018 (+259.0%) Free Cash Flow Margin Moved from 0.200 to 0.610 (+204.9%) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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