Introduction

This section presents a quantitative analysis of selected stocks based on operational efficiency, investment activity, and model-based price predictions. This is for informational purposes only and is not investment advice. Past performance does not guarantee future results. Readers should consult a licensed financial advisor before making any investment decisions.

DEA Efficiency Scores

We use Data Envelopment Analysis (DEA) to measure how efficiently companies turn resources into results. This allows us to identify firms that consistently outperform peers and utilize capital, workforce, and investments most effectively.

In fact, the firms with the highest market capitalization also are the most efficient:

Note: DEA scores are based on historical and publicly available data and do not guarantee future performance.

Predictive Modeling

We create predictive models to estimate expected market capitalization and 3-year stock price growth, combining historical financial trends with operational metrics. These predictions are designed to study relationships between efficiency and stock performance.

Efficiency scores are plotted against the estimated stock price in 3 years. The results show that estimated price growth is correlated with efficiency and this effect is present in every sector.

Disclaimer: Model outputs are projections only and should not be considered recommendations. Actual stock prices may differ significantly.

High-Quality Companies Only

We only consider companies with strong profitability, liquidity, and balance sheet health, ensuring that our picks are financially stable and well-positioned for growth.

We apply strict financial criteria to ensure only high-quality firms are selected:

  1. ROE - a (poor) proxy of management quality - derived from DuPont.

  2. Operating cash flow - sufficient liquidity.

  3. Total liabilities net minority interest divided by total equity gross minority interest - n.b. high debt to equity explains high ROE.

  4. EBIT - shows firm profitability and ability to pay interest.

  5. Predicted Price vs. Current Price – only firms with projected prices above the current price (as of 23.09.2025) are included.

All metrics are used for analytical purposes and do not constitute a recommendation to buy or sell any stock.

Composite Ranking System

Selected companies are ranked using a scoring system that combines:

  1. Operational efficiency

  2. Investment activity and growth orientation

  3. Relative valuation compared to predicted performance

Top Companies by Model Score

Disclaimer: The numbers below are model outputs and do not constitute a recommendation to buy or sell any stock. All investments carry risk.