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Exact(20)
"Some of this growth in earnings and high return on equity will turn out to be bogus," he predicted.
A high return on equity.
Even the worst of companies can sometimes post a deceptively high return on equity.
He is expecting better than average margins, high return on equity and visible book value growth.
Validea's Buffett screen looks for earnings predictability, a high return on equity, strong free cash flow and share buybacks.
Von Gaudecker likes managers who can deliver a high return on equity, with little or no debt.
Similar(40)
Look for high return-on-equity.
That means low debt-to-equity ratio, high interest coverage (where interest income substantially exceeds interest expense), increasing revenues and earnings, high return-on-equity and a dividend-payout ratio (earnings-to-dividends paid) no higher than 60% (except for utilities, REITs, and MLPs, which commonly have high payout ratios).
Fisher's GTRelevant Point One: Because of the large gap between the current low level of long-term interest rates and the relatively high return on equities measured by earnings yields (reverse price-to-earnings ratios), 2007 shapes up as a great year for equities.
WebBank, a small bank in Utah, achieves one of the highest return-on-equity metrics of any bank by providing an analogous service for marketplace lenders.
It is a low-leverage, high-return-on-equity business with surging assets, similar to Blackstone.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com