CompanyGraph
Use to find companies where this pattern is active.
Three observations co-occur: the weighted composite of net cash relative to market cap, OCF/revenue, operating margin, and ROE is in its elevated range; revenue increased every year for three years; net income was positive every year for three years. The configuration describes a present-state combination of capital structure, cash generation, profitability, and top-line growth.
State
Net-cash + OCF/Revenue + operating margin + ROE composite elevated, alongside three-year revenue growth and three-year profitability
Emergence
Three observations co-occur: a weighted composite of four fundamentals (net cash relative to market cap, OCF relative to revenue, operating margin, return on equity) is in its elevated range; revenue has increased every year for three years; and net income has been positive every year for three years. The configuration describes a present-state combination of equity-heavy capital structure, cash generation, profitability, and consistent top-line growth. It does not predict that any of the three observations remain true in future periods.
Limits
The composite observation reads inputs, not outcomes — it does not measure how the stock has actually behaved during volatility; it measures trailing fundamentals at a snapshot, not response to stress. Three-year windows are short; longer cycles can break the pattern. Industries with structurally light capital intensity may produce elevated composite readings as a category.
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Explanation
Each observation is an independent reading: Net Cash + OCF/Revenue + Operating Margin + ROE Composite (Weighted) is a weighted composite of four trailing-statistics inputs: 40% (cash − debt) / market cap, 30% OCF / revenue, 20% operating margin, 10% ROE. It is a snapshot of capital structure and cash-generation profile, not a measure of stress-period performance. Revenue Increased Every Year (3Y) confirms revenue rose year-over-year in each of the last three fiscal years. Net Income Positive Every Year (3Y) confirms net income was positive in each of the last three fiscal years. The three together describe a present-state configuration. They do not predict future resilience, guarantee growth continuation, or assess valuation.
Interpretation
This interpretation identifies business characteristics, not investment merit. It does not predict future resilience, guarantee growth continuation, or assess whether the market has already priced in these qualities. Strong businesses can still be overvalued.
Required Observations
Revenue Increased Every Year (3-Year Window)
Revenue grew year-over-year in each of the last three fiscal years.
Net Income Positive Every Year (N-Year Window)
Net income was positive in each of the last 3 fiscal years.
Net Cash + OCF/Revenue + Operating Margin + ROE Composite (Weighted)
Net cash is large against market value, and cash generation, operating margin and return on equity are all high.