There's been a lot of talk about the rule of 40, what is it and does Stockopedia have a screen for it?
Best to google rule of 40.
Basically it is used for SaaS companies, Software as a service, to see how well the company is performing. It takes the growth percentage of the revenues and adds the profit margin percentage. If both add up to 40 or more it is seen as good. Ofc, this is just one thing to look at and should not be solely relied on.
As for a screen, no there isn't that I am aware off. It is not something that can be screened for easily as you can not do it that well because the revenue growth for one company may be 10% and the profit margin could be 30% while another company could be 30% and 10%. So, use the rule of 40 as an additional check on a SaaS company by adding up the revenue growth and profit margin manually.
Hope this helps.
