Why it matters
Highly profitable businesses that reinvest well. It is best used as a valuation shortlist, not a buy list: the strongest candidates still need balance-sheet, cash-flow and competitive-position checks.
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Quality Compounders
Highly profitable businesses that reinvest well.
Compounders earn high returns on capital and reinvest them, letting value build over years. This collection screens for a return on equity of 15%+ alongside a healthy net margin — the fingerprint of a durable competitive advantage — ranked by market cap.
What to check next
Look for durable margins, sensible debt, cash conversion and whether the market is pricing in a temporary problem or a permanent decline.
Main risk
Cheap or high-quality screens can still contain value traps when earnings are peaking, accounting quality is poor or the business model is losing relevance.
Showing the 40 largest of 1044 — sort or filter to explore the rest.
- RewardRiskYield0.0%
- RewardRiskYield0.3%
- RewardRiskYield0.3%
- RewardRiskYield0.7%
- RewardRisk
- RewardRiskYield1.0%
- RewardRiskYield0.6%
- RewardRiskYield0.4%
- RewardRisk
- RewardRiskYield0.5%
- RewardRiskYield0.1%
- RewardRisk
- RewardRiskYield1.7%
- RewardRiskYield0.5%
- RewardRiskYield0.7%
- RewardRiskYield2.0%
- RewardRiskYield6.3%
- RewardRiskYield0.6%
- RewardRiskYield1.5%
- RewardRiskYield1.3%
- RewardRisk
- RewardRiskYield0.3%
- RewardRiskYield0.0%
- RewardRiskYield2.0%
- RewardRiskYield0.7%
- RewardRiskYield2.1%
- RewardRiskYield0.5%
- RewardRiskYield2.4%
- RewardRiskYield1.9%
- RewardRiskYield2.9%
- RewardRisk
- RewardRiskYield2.0%
- RewardRiskYield2.3%
- RewardRiskYield79.4%
- RewardRiskYield1.6%
- RewardRiskYield3.0%
- RewardRiskYield3.1%
- RewardRiskYield0.2%
- RewardRiskYield0.4%
- RewardRiskYield0.7%
Related collections
Frequently asked questions
What is the Quality Compounders collection?
Highly profitable businesses that reinvest well. It currently holds 1044 stocks, each rated by Openbook's Reward and Risk scores. Compounders earn high returns on capital and reinvest them, letting value build over years.
How are Quality Compounders stocks selected?
Constituents are chosen by a rules-based screen over the full UK and US common-stock universe, then ranked by market capitalisation.
How often is the Quality Compounders list updated?
It is rebuilt from live market data, so the constituents and their rankings update as prices and company fundamentals change — there is no fixed, hand-edited list.
How should I use the Reward and Risk ratings?
Openbook's Reward rating combines a stock's growth, momentum, profitability and valuation into a single 0–100 score, and the Risk rating scores financial strength, volatility and size. Use them to compare names within this theme — broadly, a higher Reward alongside a lower Risk is more attractive. They are quantitative research signals, not investment advice.
Openbook Reward and Risk ratings and factor scores are quantitative signals for research, not investment advice. Data may be delayed. Some US-listed names carry partial factor coverage.