To build a screener for the CoffeeCan Basket on Screener.in, which follows the "buy-and-forget" approach, you'll want to focus on identifying companies that have demonstrated consistent financial performance, have high return on capital, low debt, and are fundamentally strong with minimal volatility. Here's how you can structure the screener:
Criteria for CoffeeCan Basket Screener
Consistent Revenue Growth:
Revenue Growth > 10% CAGR over the last 10 years: This ensures the company has been growing steadily.
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10Years CAGR Sales > 10
Consistent Profit Growth:
Profit Growth > 10% CAGR over the last 10 years: This filters companies with stable and increasing profitability.
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10Years CAGR Profit > 10
High Return on Capital Employed (ROCE):
ROCE > 15% consistently for the last 10 years: Ensures efficient use of capital and strong returns.
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Return on capital employed > 15 AND Return on capital employed preceding year > 15
Low Debt:
Debt to Equity < 0.5: Companies with low leverage tend to be more stable and less risky.
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Debt to equity < 0.5
Positive Free Cash Flow:
Positive Free Cash Flow for at least 7 out of the last 10 years: Indicates the company generates enough cash to cover its expenses and reinvest in growth.
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Free cash flow preceding year > 0 AND Average 7Years Free cash flow > 0
Dividend Payout:
Consistent Dividend Payout Ratio > 10%: A good indicator of a company’s commitment to returning profits to shareholders.
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Dividend payout ratio > 10
Earnings Stability:
Standard Deviation of Profit Growth < 15% over the last 10 years: Selects companies with less volatile earnings.
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Standard deviation profit 10Years < 15
Additional Filters
Market Cap: Consider only large-cap or mid-cap companies to ensure stability and market recognition.
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Market capitalization > 5000
Promoter Holding: High promoter holding (greater than 50%) generally indicates confidence in the business.
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Promoter holding > 50