High Quality Stock = Good financial growth + Growth Industry + Good management + Good leadership

Condition
3 year continuous profit (EPS Earning per share) growth, PROFITGR EPSGR (Profit Growth: Score point=1, EPS Growth: Score point=1)

Formula
(1) ROE > 15 (Score point = 2)
Return on Equity ROE = EPS/NTA

Net Income/ Total Shareholder's Equity

(2) DE < 0.60 (Score point = 2)
Debt Ratio DE = Total Liabilities / Shareholders Equity

(3) DY > 3 (Score point =2)
Dividend Yield > Current Fixed Deposit Rate

(4) Liquidity Ratio > 1 (Score point=1)
Liquidity Ratio = Current Assets / Current Liabilities

(5) Profitability Ratio > 10 (Score point=1)

Profitability Ratio = Net Profit / Revenue

(6) Free Cash Flow (Score point=2)
= Net Income + Depreciation/Amortization – Change in Working Capital - Capital Expenditures
= Cash Flows from Operating Activities – Capital Expenditures

Stocks that score >10 are consider as high quality stocks.