Ten Characteristics of a High

Ten Characteristics of a High - Ten Characteristics of a...

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Unformatted text preview: Ten Characteristics of a High-quality Company 1. A business that provides a high-quality product or service and has a sustainable competitive advantage 2. A superior management that has demonstrated a desire to act in the interests of shareholders 3. Compound EPS growth rate of 10-12% over the last 10 years. 4. Consistency in earnings growth 5. Projected growth rate in earning power of at least 10% over 3 years 6. A strong balance sheet 7. A return on invested capital (ROIC) that has averaged at least 14% over the past5 years and is increasing and/or a return on equity (ROE) that has averaged at least 19% over the past 5 years and is increasing 8. The generation of free cash flow 9. International competitiveness 10. A reasonable purchase price High-quality product or service and sustainable competitive advantage Examples are providing a superior product or service, having the leading market share, being the low-cost producer, possessing a superior distribution system, using better information technology and computer...
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This note was uploaded on 04/03/2008 for the course FIN 311 taught by Professor Garrison during the Spring '08 term at Arizona.

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Ten Characteristics of a High - Ten Characteristics of a...

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