You may want to consider using AI's such as DEEPSEEK, GROK, PERPLEXITY to find the answers you are looking for, if you don't already use them.
Here's the reply that DEEPSEEK gave me to answer the question in your Item (2), namely "FIND 20 COMPANIES ON THE NYSE WHO HAVE BOTH THE HIGHEST ROIC AND EV/EBIT" ----->
"Methodology & Important Disclaimer
- Data is Dynamic: Stock prices and financial metrics change daily. The following list was compiled based on recent data, but it is a snapshot in time, not a permanent ranking.
- Screening Criteria: To create this list, we looked for NYSE-listed companies with:
- ROIC: Generally above 20% (many are significantly higher).
- EV/EBIT: Generally above 25x (signaling high market expectations).
- Market Cap: Focus on large, established companies to ensure data reliability.
- This is not investment advice. These companies are often priced for perfection. Any stumble in growth or profitability can lead to a significant correction in their stock price.
20 NYSE Companies with High ROIC and High EV/EBITHere is a list of 20 companies that exemplify the combination of exceptional quality and high valuation.
Company Name - Ticker - Sector - Why it Fits (High ROIC Driver)|
| 1. Mastercard Inc. | MA | Financial Services | Incredible capital-light network model. High fees on a massive volume of transactions. | | 2. Visa Inc. | V | Financial Services | Similar to Mastercard. A dominant global payments network with phenomenal margins. | | 3. Microsoft Corporation | MSFT | Technology | Dominant software (Windows, Office), high-margin cloud (Azure), and strong enterprise lock-in. | | 4. Apple Inc. | AAPL | Technology | Premium brand power, immense pricing power, and a hugely profitable ecosystem (iPhone, Services). | | 5. Alphabet Inc. (Google) | GOOGL | Communication Services | Near-monopoly in search advertising (Google) and a leader in cloud (GCP) and video (YouTube). | | 6. Meta Platforms, Inc. | META | Communication Services | Massive scale in social media (Facebook, Instagram, WhatsApp) driving incredibly profitable ads. | | 7. Adobe Inc. | ADBE | Technology | Dominant creative software (Photoshop, Illustrator) with a highly successful subscription model. | | 8. Intuit Inc. | INTU | Technology | Dominates small business (QuickBooks) and tax (TurboTax) software with strong recurring revenue. | | 9. Automatic Data Processing | ADP | Industrials | Leading payroll processing provider. Benefits from high switching costs and recurring revenue. | | 10. S&P Global Inc. | SPGI | Financial Services | Dominant credit rating agency and index provider. Essential, high-margin, and hard to disrupt. | | 11. Moody's Corporation | MCO | Financial Services | Duopoly with S&P in credit ratings. possesses immense pricing power and a wide moat. | | 12. Sherwin-Williams Co. | SHW | Basic Materials | Leading paint manufacturer with a powerful brand and a vast, company-owned retail network. | | 13. Pool Corporation | POOL | Industrials | The largest wholesale distributor of swimming pool supplies. A niche leader with high margins. | | 14. Colgate-Palmolive Co. | CL | Consumer Defensive | Powerful global consumer brands that generate consistent, high-margin cash flows. | | 15. The Estée Lauder Co. | EL | Consumer Defensive | Luxury brand portfolio with tremendous pricing power and global appeal. | | 16. Nike, Inc. | NKE | Consumer Cyclical | One of the world's strongest brands. Drives high margins through brand loyalty and innovation. | | 17. Thermo Fisher Scientific | TMO | Healthcare | Leader in life sciences tools and diagnostics. Benefits from recurring revenue and innovation. | | 18. Stryker Corporation | SYK | Healthcare | Leading medical technology company. High R&D creates innovative products with premium pricing. | | 19. TransUnion | TRU | Industrials | One of the three major credit bureaus. Benefits from a vital role in the economy and deep data moats. | | 20. Verisk Analytics, Inc. | VRSK | Industrials | Provides data analytics and risk assessment to insurance and other industries. High switching costs. |
Key Observations and Common Themes: Companies that achieve this elite status almost always share a few critical characteristics that create their "moat":
- Network Effects: (Visa, Mastercard, Meta) The value of the service increases as more people use it, creating a virtually unassailable position.
- Intangible Assets: (Apple, Nike, Estée Lauder) Powerful brands and patents that allow for premium pricing and customer loyalty.
- Cost Advantages: (Adobe, Microsoft) Often through software, where the cost to produce one more unit is nearly zero, leading to incredible scalability.
- High Switching Costs: (ADP, Salesforce) It is so difficult or expensive for a customer to switch to a competitor that they are effectively "locked in."
- Efficient Scale: (S&P, Moody's) The market is effectively served by a very small number of firms, making it unattractive for new competitors to enter.
In summary, you have asked for a list of some of the most successful and richly valued companies in the world. They are excellent case studies for understanding competitive advantages, but their high valuations mean an investor must have strong conviction in their future growth to justify buying at current prices." |
