Nightly screen · as of Oct 1, 2026

Quality Compounders · Quality compounder

Name: Quality Compounders screen: US stocks, daily
Creator: Tenet Investing
License: https://tenetinvesting.com/methodology

Names whose Quality Compounder verdict passes tonight: return on invested capital held high across most of the last five years, durable revenue growth, healthy free-cash-flow margins, earnings backed by cash, and a share count that isn't drifting up. Those five are the gate. A sixth line reports active buybacks as a bonus reading, held outside the gate, so it counts neither for nor against a name. The reinvestment flywheel: high returns compounded, few new shares to dilute them. Minimum $1B market cap. A research read on business quality, never a recommendation.

1,966

universe screened

qualify today

Oct 1, 2026

last run

Top 5 by Tenet Score · 53 more with Premium

What is the Tenet Score? →

passesfailsborderlineunknown

A name qualifies when it clears every criterion it has data for. A criterion shown as "not checked" doesn't count against it (at least 3 of the 5 must have data).

ROIC yrs: Fiscal years (of the last 5) with return on invested capital ≥ 15% · Rev CAGR: 5-year revenue compound annual growth rate · Share Δ 5y: 5-year diluted share-count CAGR (negative = buying back) · FCF margin: Free-cash-flow margin

XZO

Exzeo Group Inc.

Technology

~ Return on invested capital ≥ 15% in 4+ of the last 5 years4 of 5

2 of 2 on file

47.2%

0.0%

44.9%

Receipt · XZO · frozen at run timeClears 4 of 5 published testsOn this list since Sep 25, 2026

XZO — every criterion, its measured value, its published bar and the margin
Verdict	Test	Measured	Bar	Margin
Not checked: Only 2 of the last 5 fiscal years have return-on-invested-capital on record in our data; 4 are needed to score this criterion, so it is left unscored rather than counted against.	Return on invested capital ≥ 15% in 4+ of the last 5 years	not checked
	Only 2 of the last 5 fiscal years have return-on-invested-capital on record in our data; 4 are needed to score this criterion, so it is left unscored rather than counted against.
Passes	Revenue compounding ≥ 8%/yr over 5 years	47.2%	≥ 8.0%	+39.2 pts
Passes	Not diluting: diluted share count flat-to-down (≤ +1%/yr)	0.0%	≤ 1.0%	+1.0 pts
Passes	Free cash flow margin ≥ 12%	44.9%	≥ 12.0%	+32.9 pts
Passes	Earnings backed by cash (operating cash flow ≥ net income)	1.21	≥ 1.00	+0.21
	Disciplined buybacks: actively reducing the share count (bonus)bonus	0.0%

4 of 5 criteria pass · 1 not checked · clears the gate; criteria shown as "not checked" don't count against it

DRD

DRDGold Ltd.

Basic Materials

~ Return on invested capital ≥ 15% in 4+ of the last 5 years4 of 5

3 of 3 on file

12.6%

0.0%

15.9%

Receipt · DRD · frozen at run timeClears 4 of 5 published testsOn this list since Jul 16, 2026

DRD — every criterion, its measured value, its published bar and the margin
Verdict	Test	Measured	Bar	Margin
Not checked: Only 3 of the last 5 fiscal years have return-on-invested-capital on record in our data; 4 are needed to score this criterion, so it is left unscored rather than counted against.	Return on invested capital ≥ 15% in 4+ of the last 5 years	not checked
	Only 3 of the last 5 fiscal years have return-on-invested-capital on record in our data; 4 are needed to score this criterion, so it is left unscored rather than counted against.
Passes	Revenue compounding ≥ 8%/yr over 5 years	12.6%	≥ 8.0%	+4.6 pts
Passes	Not diluting: diluted share count flat-to-down (≤ +1%/yr)	0.0%	≤ 1.0%	+1.0 pts
Passes	Free cash flow margin ≥ 12%	15.9%	≥ 12.0%	+3.9 pts
Passes	Earnings backed by cash (operating cash flow ≥ net income)	1.57	≥ 1.00	+0.57
	Disciplined buybacks: actively reducing the share count (bonus)bonus	0.0%

4 of 5 criteria pass · 1 not checked · clears the gate; criteria shown as "not checked" don't count against it

IPAR

Interparfums Inc.

Consumer Defensive

5 of 5

4 of 5

22.5%

0.2%

12.8%

Receipt · IPAR · frozen at run timeClears 5 of 5 published testsOn this list since Jul 16, 2026

IPAR — every criterion, its measured value, its published bar and the margin
Verdict	Test	Measured	Bar	Margin
Passes	Return on invested capital ≥ 15% in 4+ of the last 5 years	4 of 5
Passes	Revenue compounding ≥ 8%/yr over 5 years	22.5%	≥ 8.0%	+14.5 pts
Passes	Not diluting: diluted share count flat-to-down (≤ +1%/yr)	0.2%	≤ 1.0%	+0.8 pts
Passes	Free cash flow margin ≥ 12%	12.8%	≥ 12.0%	+0.8 pts
Passes	Earnings backed by cash (operating cash flow ≥ net income)	1.28	≥ 1.00	+0.28
	Disciplined buybacks: actively reducing the share count (bonus)bonus	0.2%

5 of 5 criteria pass

GNTX

Gentex Corp.

Consumer Cyclical

5 of 5

4 of 4 on file

8.5%

−2.5%

18.1%

Receipt · GNTX · frozen at run timeClears 5 of 5 published testsOn this list since Jul 16, 2026

GNTX — every criterion, its measured value, its published bar and the margin
Verdict	Test	Measured	Bar	Margin
Passes	Return on invested capital ≥ 15% in 4+ of the last 5 years	4 of 4 on file
Passes	Revenue compounding ≥ 8%/yr over 5 years	8.5%	≥ 8.0%	+0.5 pts
Passes	Not diluting: diluted share count flat-to-down (≤ +1%/yr)	−2.5%	≤ 1.0%	+3.5 pts
Passes	Free cash flow margin ≥ 12%	18.1%	≥ 12.0%	+6.1 pts
Passes	Earnings backed by cash (operating cash flow ≥ net income)	1.46	≥ 1.00	+0.46
	Disciplined buybacks: actively reducing the share count (bonus)bonus	−2.5%

5 of 5 criteria pass

BKNG

Booking Holdings Inc

Industrials

5 of 5

4 of 5

31.7%

−4.7%

33.8%

Receipt · BKNG · frozen at run timeClears 5 of 5 published testsOn this list since Jul 16, 2026

BKNG — every criterion, its measured value, its published bar and the margin
Verdict	Test	Measured	Bar	Margin
Passes	Return on invested capital ≥ 15% in 4+ of the last 5 years	4 of 5
Passes	Revenue compounding ≥ 8%/yr over 5 years	31.7%	≥ 8.0%	+23.7 pts
Passes	Not diluting: diluted share count flat-to-down (≤ +1%/yr)	−4.7%	≤ 1.0%	+5.7 pts
Passes	Free cash flow margin ≥ 12%	33.8%	≥ 12.0%	+21.8 pts
Passes	Earnings backed by cash (operating cash flow ≥ net income)	1.37	≥ 1.00	+0.37
	Disciplined buybacks: actively reducing the share count (bonus)bonus	−4.7%

5 of 5 criteria pass

+53 more names qualify today, every one with its receiptPremium · $119/yr · 7-day trial · cancel anytimeSee all 58 names →

Computed Oct 1, 2026 · universe 1,966 names · recomputed nightly

Click any row for the receipt: every criterion with its live value and pass rule. Score is the Tenet composite (sector-relative, 0–100).

Common questions

What is a quality compounder?

A business that earns more on its capital than that capital costs, and can put fresh earnings back to work at the same high rate. Value then compounds internally rather than depending on the multiple the market pays. The rarity is the reinvestment runway, not the high return.

What does this screen actually test?

Return on invested capital of 15% or better in at least four of the last five years, revenue compounding at 8% a year or better over five years, a diluted share count that is flat to falling, a free-cash-flow margin of 12% or better, and earnings backed by cash. Those five are the gate. A sixth line reports whether the company is actively buying back stock, published as a bonus reading and held outside the gate, so it decides the verdict in neither direction.

Which compounders qualify today?

58 of 1966 screened US names (as of 2026-10-01). It is a short list by construction, because sustaining a high return on capital for five years while growing and not issuing shares is uncommon. Up to the top 5 publish in the free view with their receipts, and the rest comes with Premium.

Does a name have to pass every criterion to qualify?

Not every one: a name must clear every criterion that has live data, and at least 3 of the 5 must have data. A criterion shown as "not checked" doesn't count against a name, so nothing on the list fails a criterion it has data for.

Every row carries its qualifying math, frozen at run time.

Tenet is educational research, not investment advice.

Data from Intrinio and Financial Modeling Prep.