List of High Quality Cyclicals With Growth

Friday, Nov 03 2017 by

Has anyone developed a list of UK high-quality consumer cyclical stocks that:

1) Have good earnings metrics: high ROA, ROE, etc

2) Good free cash flow

3) Consistent growth of revenue and earnings > 7%

4) Moderate or no leverage

I am thinking of companies like Safestyle (SFE.L), Epwin (EPWN.L) and Topps Tiles (TPT.L)

I'm developing a list of these anticipating a mild consumer recession in the UK due to brexit and would like to start studying the best candidates.

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Safestyle UK plc is a United Kingdom-based company engaged in the sale, manufacture and installation of replacement un-plasticized poly vinyl chloride (PVCu) windows and doors for the United Kingdom homeowner market. The Company's segment includes the sale, design, manufacture, installation and maintenance of domestic, double-glazed, replacement windows and doors. The Company has over 30 sales branches and approximately 10 distribution depots located throughout the United Kingdom. Its product range includes EcoDiamond WINDOWS, EcoDiamond UPVC DOORS, EcoDiamond BI-FOLD DOORS, EcoDiamond REPLACEMENT CONSERVATORIES, GuardDoor, Pavilion and Inspire. It has manufactured over 279,000 frames and carried out approximately 60,000 installations. The Company's subsidiaries include Style Group Holdings Limited, Style Group Limited and HPAS Limited. more »

LSE Price
78p
Change
-1.0%
Mkt Cap (£m)
65.2
P/E (fwd)
13.9
Yield (fwd)
1.4

Epwin Group Plc is a manufacturer of extrusions, moldings and fabricated low maintenance building products, operating in the repair, maintenance and improvement, new build and social housing sectors. The Company operates through two segments: Extrusion and Moulding, and Fabrication and Distribution. The Extrusion and Moulding segment is engaged extrusion and marketing of polyvinyl chloride-unplasticized (PVC-U) window profile systems, PVC-UE cellular roofline and cladding, rigid rainwater and drainage products and wood plastic composite decking products. It operates from extrusion and molding facilities in Telford, Tamworth and Scunthorpe, among others. The Fabrication and Distribution segment is involved in fabrication and marketing of windows and doors, distribution of cellular roofline, rainwater and drainage products, and manufacture of glass sealed units. It operates from over five window and door fabrication sites, and approximately two glass sealed unit manufacturing sites. more »

LSE Price
81.8p
Change
 
Mkt Cap (£m)
112.9
P/E (fwd)
7.5
Yield (fwd)
6.9

Topps Tiles Plc is a United Kingdom-based retailer of tiles. The Company is engaged in the retail distribution of ceramic and porcelain tiles, natural stone, and related products. It operates in the Topps Tiles stores and online business segment. It supplies tiles and associated products to both trade and retail customer base, primarily for the refurbishment of the United Kingdom domestic housing. Its product categories include new products, bathroom wall tiles, kitchen wall tiles, mosaic tiles, kitchen floor tiles, bathroom floor tiles, ceramic tiles, porcelain tiles, underfloor heating, wet rooms, outdoor tiles, fireplace tiles and metro tiles. Its brands include Tile Adhesive, Tile Grout, Tile Preparations, Hardiebacker Board, Rubi Tools and Accessories, Warmup, and Homelux Tiles Trims. It offers tiles in various colors, such as beige tiles, black tiles, blue tiles, brown tiles, cream tiles and gold tiles. It has over 350 stores across the United Kingdom. more »

LSE Price
72.8p
Change
 
Mkt Cap (£m)
148.1
P/E (fwd)
11.3
Yield (fwd)
4.5



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4 Posts on this Thread show/hide all

pone 4th Nov '17 1 of 4

Does Stockopedia have a way to get a list of all consumer cyclical companies in the UK?

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Howard Marx 4th Nov '17 3 of 4

Pone

Based on your criteria  (ROCE > 10%, P/FCF < 20x, Sales 3 year cagr > 7% p.a.), the UK list extends to no more than 20 companies.

Needless to say that after 8 years of economic recovery they are all due an eanings contraction & associated de-rating - though I agree it's good to get your research done early

https://www.stockopedia.com/sc...



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herbie47 4th Nov '17 4 of 4

Eurocell (LON:ECEL) is worth a look.



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