UK Risk Rankings

Creative Portfolios

Paul Hollingworth sifts through ~300 UK companies to ascertain their financial risk. He incorporates seven different Risk Models and scores companies by each model to come up with an aggregate Score. Investors should not be chasing high risk or "a dash for trash" (as we saw in Jan) but should combine classical valuation assessment with low risk opportunities. Companies featured in the top quartile of low risk include Renishaw, Rightmove, Sylvania Platinum, AG Barr, Rotork and Wilmington. Investors should eschew companies such as Wizz Air, Aston Martin, Mitchells & Butlers, Rolls Royce and Ocado. Let alone small caps such as Kromek, Plant Health or Pressure Technologies.

- 17 February, 2023

Screening UK & Europe: Combining quality, momentum and expectations indicators

Willis Welby

Methodology - the initial universes are stocks with $2bn+ M/Cap in the UK and $5.5bn+ across Europe. After that Willis Welby starts with a quality cut off based on their measure of Intrinsic Return on Capital Employed. They then narrow down using a combination of share price momentum and EBIT revisions before incorporating their expectations analysis via their measure of the implied to Y3 EBITM ratio. This month sees 6 stocks enter the UK screen (including Rio Tinto, Flutter, Renishaw) and 17 names added to the European version (including Nestle, Hapag-Lloyd, Roche, Vestas, Aker).

- 22 July, 2022