Cash-flow compounders

Consistent cash generation, sensible capital allocation and durable growth.

Businesses that convert profits to cash and reinvest sensibly tend to compound quietly. This screener filters for the discipline that separates a long-view holding from a rerating trade.

METHOD

How this screen is built

Operating cash-flow to net-profit conversion above 90% averaged over 5 years
Free cash-flow growth of at least 10% CAGR over 5 years
Return on invested capital above 15% in each of the last 3 years
Dividend or buyback yield greater than 0.5% in the last full year

HANDLE WITH CARE

What this screen does not tell you

Past cash-flow discipline is a filter, not a guarantee. Track capital allocation forward.
Very stable compounders can stay expensive for long stretches; entry price still matters for a decade-horizon owner.

Where the evidence lives

Long-view horizon and business quality score
Cash-flow statement history
Capital allocation summary (capex, dividends, buybacks, acquisitions)

SAMPLE FILTERS

What the query looks like

CFO / PAT ≥ 90%

Reported profits are turning into actual cash.

FCF CAGR ≥ 10%

The cash pool is growing, not just being defended.

ROIC ≥ 15% (3 of 3 years)

Reinvestment is compounding, not diluting.

This prototype view describes the filter. Live results will list matching companies once the security master and licensed data feeds are connected.

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