Measuring the quality of Micro Focus International (LON:MCRO)

Measuring the quality of Micro Focus International (LON:MCRO)

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A company with a high Quality Rank has strong cash-generation, consistent profits, high rates of return on investment, high margins and robust financial health. Quality companies are good at reinvesting at high returns, which allows earnings (and share prices) to compound over time. You can tell them apart by their high returns on capital.

Stockopedia has built its Quality Rank to quickly show investors how well every stock in the market stacks up according to these criteria. Let’s take a look at Micro Focus International (LON:MCRO)’s Quality Rank.

What Stockopedia’s Quality Rank says about Micro Focus International

Micro Focus International has a Quality Rank of 74. This means it has above average quality characteristics but is not in the top bucket.

Judging a stock based on quality attributes is a solid way to think about potential investments - but it is not the whole story. Evidence suggests combining factors can lead to more robust returns, so screening for high Quality Rank stocks in conjunction with either the Value Rank or Momentum Rank is a good idea.


What does this mean for potential investors?

Some of the best quality stocks in the market have defensible models that can deliver high levels of shareholder returns over the long term. But there are no guarantees and it's important to do your own research. Indeed, we've identified some areas of concern with Micro Focus International that you can find out about here.


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Stockopedia helps individual investors make confident, profitable choices in the stock market. Our StockRank and factor investing toolbox unlocks institutional-quality insights into thousands of global stocks. Voted “Best Investment Research Tools” and “Best Research Service” at the 2021 UK Investor Magazine awards.

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested.