Exec Comp Aligned with ROIC

This New Constructs Model Portfolio includes stocks that earn an Attractive or Very Attractive rating and align executive compensation with improving ROIC.

Each month, we present roughly 15 Attractive-or-better rated stocks that tie executive compensation to improvement in ROIC. Stocks earn an Attractive-or-better rating when they have:

1. High-Quality Earnings based on:
1. Returns on Invested Capital that are rising; and
2. Economic Earnings/Cash Flows that are positive.
2. Cheap Valuations based on:
1. Free Cash Flow yields that are positive:
2. Price-to-Economic Book Value (EBV) ratios that are relatively low: and
3. Growth Appreciation Periods (GAP) that are relatively low.

1. The "Accurate ROIC Calculation/Strong Alignment with Exec Comp" Stocks 
2. The "Flawed ROIC Calculation/Strong Alignment with Exec Comp" Stocks
3. The “Weak Alignment with Exec Comp" Stocks
4. Additions for the current month 
5. Deletions from the prior month
6. Performance of all stocks in last month's Model Portfolio

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