Seeking Quality - Strong Cash Flow and Prudent Debt Leverage

Components Performance/Risk
Period Return
9.7%
Return Rank
Subpar
Risk Exposure
Low Risk

The selection of equities, listed on NYSE and NASDAQ, is updated dynamically by machine learning at market closure every night

Stocks are screened for strong fundamentals, controling for low volatility, a strong cash conversion ratio and low debt

 

Cash conversion

  • signals quality when cash earnings (measured by FCF) gain on accrual earnings (measured by net income)
  • it is a comparison of how much cash flow a company generates compared to its accounting profit

 

Debt leverage (D/E)

  • Financial leverage refers to the amount of debt the company has been using to finance its business operations
  • When interest rates are rising, low debt protects the firm, especially when profitability is impacted by a recession

 

Invesco S&P 500 Quality ETF is the benchmark of the selection

Theme Components
Name
Ticker
Sector
Industry
Cur. Price
Mkt. Cap
Performance
Momentum
Risk Rank
Risk Contrib
 
Trimble TRMB Industrial GoodsPrecision, Measurement & Processing59.5114 B-29.5% Weak Up Below Average
AMETEK AME Industrial GoodsPrecision, Measurement & Processing253.6658 B37.1% Weak Up Low Risk
Graco GGG Industrial GoodsEnergy & Fluid Control Systems/Pumps & Filters83.5414 B-2.2% Weak Up Low Risk
Xylem XYL Industrial GoodsEnergy & Fluid Control Systems/Pumps & Filters120.3229 B-13.9% Neutral Low Risk
Lindsay LNN Industrial GoodsConst & Agr Equipt/Engines/Trucks116.061.2 B-16.8% Neutral Below Average
Snap-On SNA Industrial GoodsMachine Tools, Motors & Parts416.3522 B31.0% Weak Up Low Risk
Universal Forest Products UFPI AgricultureForestry & Lumber Products94.045.3 B-8.8% Weak Up Below Average
Utah Medical Products UTMD Health CareMedical Devices70.83226 M23.2% Neutral Below Average
Alcon ALC Health CareMedical Devices71.8135 B-15.6% Neutral Below Average
Vertex Pharmaceuticals VRTX Health CareGene Therapies496.07126 B25.3% Neutral Below Average
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