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Subject:  Re: Would you be interested in this company Date:  4/17/2021  1:51 AM
Author:  Fooledbydesign Number:  76839 of 77961

It would be good to see how our criteria are all playing out for ZI.

Purchase Criteria
- >40% Revenue growth
- Special niche, something special
- Moat
- Big future
- Rule breaker
- Recurrent Revenue, and expanding. (software, saas, not sell THINGS/Hardware, Not capital intensive, not cyclical boom/bust stocks like mining, drilling, natural resources, restaurant chains)
- High Gross Margin, Rising Margins.
- Rapidly improving metrics (rapidly dropping losses as a percent of revenue, or increasing profits if they are already profitable, increasing gross margins, rapid customer acquisition, improving cash flow, dropping operating expenses as a percent of revenue, or justified slowness )
- Dollar-based retention rate over 110%, 120%. 130% is very good. High Net Promoter Score if available.
- Positive and growing Free Cash Flow (FCF), or progress in that direction
- Lot of cash and little or no debt.
- Founder led
- Substantial insider ownership
- Not huge customer concentration
- How well the price matches its prospects
- Company has a long way to grow - the total addressable market (TAM) is so big, and there is a lot of room in that for the company to triple/quadruple.
- Management must be interested in making a profit (unlike amazon, but opportunity cost available elsewhere)
- A degree of switching costs
- If worried about high EV/S, Look at Oomph Factor (About, Calculation)
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