Join our community of smart investors

AlphaScreens: Exclusive quality club

Large companies score well and Aim screen flags new ideas
September 17, 2018

There are now 19 companies that pass all nine of our FTSE All Share Quality screen tests. Of companies listed on the main exchange, there aren’t many changes from the last time the screen was run, with only precision engineer Renishaw (RSW) joining the 9/9 club. There are, however, more Aim companies that now pass all the tests.

  • Quality is a style that favours larger and well established companies. Of the 19 companies passing every test, all except Polypipe (PLP) have a market capitalisation of over £1bn and five companies – Reckitt Benckiser (RB/), Unilever (ULVR), Ashtead (AHT), RELX (REL) and Diageo (DGE) – are over £10bn.
  • Smaller companies on the main exchange have not tended to perform so well against this screen, last month none of the FTSE All Small Companies constituents scored 9/9 and this month, only aviation charter specialist Air Partner (AIR) meets all the criteria. Although, as this company operates in uncertain markets, the good performance against our screen should just be a starting point for research.
  • Small companies listed on Aim score more highly against our tests. There are 15 with a perfect nine passes, including seven new entries.
Download PDF