Ten candidates.
Capital must be earned.

Exceptional margins, cash generation and structural growth pass the quality test. At roughly 47× trailing earnings, the required 25% margin of safety is absent.

A focused moat, debt-free balance sheet and record growth are compelling. The current earnings multiple still leaves insufficient downside protection under the MITUXA 25% rule.

Improving orders, margins and operating cash flow pass the business test. A valuation above 30× earnings, close to the annual high, does not pass the entry test.

Record growth and better cash conversion are genuine. The price already discounts substantial execution while defence concentration and manufacturing cyclicality remain material.

Revenue, margin and adjusted earnings momentum are excellent, but the share-price rerating has run far ahead of normalised earnings. The margin of safety is no longer adequate.

Contracted growth, scaling margins and positive operating cash flow strengthen the thesis. Profitability is still too young and the valuation depends on aggressive future deployment.

Free-cash-flow conversion and 15.2% ROCE pass the quality screen. At the current rating, acquisitions and margin expansion must work too well to provide a full 25% safety buffer.

High margins, net cash and an embedded diagnostic workflow remain attractive. Growth is not yet strong enough to justify the current mid-to-high twenties earnings multiple with 25% protection.

The industrial pivot, margin recovery and cash generation are encouraging, and valuation is reasonable. Growth, balance-sheet liquidity and durable returns on capital need further confirmation.