Long Equity runs a single concentrated investment strategy consisting of value-creating and price-setting companies. He holds a Masters degree in banking and a PhD in quantitative modeling.
Number 1: Paylocity (NASDAQ:PCTY) * Business: Paylocity sells cloud-based payroll and human capital management software. They sell to businesses of all sizes, primarily in the US. They have a market capitalisation of $12bn. * Growth: Over the last 5 years, their revenue has grown 25% per year and FCF per share
This is just a quick update to share some of today's analysis. I started with the S&P 500, 400 and 600. I then calculated the cash returns on capital over the last 10 years and determined the minimum that the cash ROC was over the last
Share price growth is the result of change in FCF per share and change in FCF yield. So when we find a company that has grown its share price, it's important to investigate further and determine whether share price growth has been the result of improving fundamentals or
Let's take a quick look at four companies that have compounded their share price with a high level of linearity and also have a fairly decent underlying business. For each company, we will take a brief look at the business, growth, capital efficiency, valuation and share price momentum.
Over the last 15 years, Descartes Systems Group has grown its share price at an annualised rate of 24% per year. Just as impressive is the fact that it did so with a linearity of 0.93. Linearity refers to how straight a line. Companies with high linearity have a