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With markets at all-time highs, finding good companies trading at fair earnings multiples takes work. A simple screener can be a good place to start filtering out companies that are either too expensive or have underwhelming business quality. 

Using the Stock Unlock Screener, the following filters return 27 U.S.-listed businesses trading at a P/E of 25x or below:

• FCF Growth (5Y CAGR) of 12% or higher
• ROIC of 20% or higher
• Debt-to-EBITDA ratio of less than 2 to ensure a quality balance sheet 

Here are the 10 most exciting names:

Bought to you by: Stock Unlock. 

Google’s legendary mission statement is “to organize the world’s information and make it universally accessible and useful.” Along with the other bets, such as Cloud, YouTube, Workspace and Waymo, Google has become the world’s fourth-largest company by market cap. Among the wildly successful FAANGs, Google is arguably the most reasonably priced stock.

• Stock Unlock Insights Score: 4.11 / 5 
• 5Y Stock Price Return: 171% (22.1% CAGR)
• 5Y FCF Growth: 16.2% CAGR
• ROIC: 31.2%
• Debt-to-EBITDA: 0.12

One of the world’s largest semiconductor companies, Qualcomm designs and manufactures chips. In the 1980s, Qualcomm was at the forefront of the technology developed for telecommunication and wireless communication, and the company has also played an essential part in the global rollout of 5G over the past few years. 

• Stock Unlock Insights Score: 3.79 / 5 
• 5Y Stock Price Return: 128% (17.9% CAGR)
• 5Y FCF Growth: 13.8% CAGR
• ROIC: 29.2%
• Debt-to-EBITDA: 1.3

Semler Scientific operates within the medical devices industry. Like many other small-caps, Semler stock is extremely volatile - despite a market-beating 12.1% CAGR return since going public in 2014, Semler is currently in an 84% (!) drawdown since the stock price peaked in late 2021. 

We also covered Semler Scientific in a previous newsletter for those interested in diving deeper into the business.

• Stock Unlock Insights Score: 3.63 / 5 
• 5Y Stock Price Return: -35% (-8.3% CAGR)
• 5Y FCF Growth: 14.0% CAGR
• ROIC: 25.2%
• Debt-to-EBITDA: 0

Carlisle Companies is a fascinating business. Before 2017, it was a diversified industrial company with revenues from building products, food service products, and brake & friction material. At that time, the company delivered an average ROIC of 14%. 

However, Carlisle recently pivoted to become a pure-play building products company to put all effort into its highest returning business segment. Today, Carlisle earns ~25% ROIC and generates 100% of revenues from building products from what has been a highly successful pivot. 

• Stock Unlock Insights Score: 3.89 / 5 
• 5Y Stock Price Return: 220% (26.1% CAGR)
• 5Y FCF Growth: 12.6% CAGR
• ROIC: 25.5%
• Debt-to-EBITDA: 1.7

Applied Materials benefits from the huge demand for AI and data center computing, and semiconductor companies are expected to significantly outgrow GDP in the long term. Applied Materials is also shareholder-friendly, committed to returning 80%- 100% of free cash flow back to shareholders through dividends and share buybacks. 

• Stock Unlock Insights Score: 4.08 / 5 
• 5Y Stock Price Return: 307% (32.3% CAGR)
• 5Y FCF Growth: 19.6% CAGR
• ROIC: 40.3%
• Debt-to-EBITDA: 0.7

Payroll software benefits from huge switching costs due to the time, costs and productivity loss associated with changing systems for any organization, regardless of size. That has helped Paycom grow revenues by 30% annually and EPS by more than 50% annually over the past decade. However, Paycom stock is currently in a ~70% drawdown due to concerns over business strength and slowing growth. 

• Stock Unlock Insights Score: 4.03 / 5 
• 5Y Stock Price Return: -18% (-4% CAGR)
• 5Y FCF Growth: 20.1%
• ROIC: 42.0%
• Debt-to-EBITDA: 0

The iconic Nathan’s Famous is more than just the annual hot dog eating contest it has become famous for over the years. It also operates through various channels, including consumer packaged goods, bulk food service packaged goods, a few company-owned restaurants, and more than 200 franchised restaurants. 

Nathan’s Famous also regularly buys back stock, with shares outstanding down by about 2% annually since 2010. In 2015, the company shifted strategies to focus more on dividends, and paid out one-time special dividends in both 2015 and 2018. Today, the dividend yield is close to 2.5% and has grown by double-digits over the past five years. 

• Stock Unlock Insights Score: 3.66 / 5 
• 5Y Stock Price Return: 13% (2.5% CAGR)
• 5Y FCF Growth: 28.5% CAGR
• ROIC: 319.3%
• Debt-to-EBITDA: 1.7

NVR is one of the largest homebuilders in the United States, serving customers across 16 states in the Eastern and Midwestern parts of the country. Though it operates in a cyclical industry, building single-family and townhomes has proven to be a good business model in a constantly under-supplied market. NVR stock has delivered an impressive ~24% CAGR for shareholders since 1990.

• Stock Unlock Insights Score: 3.72 / 5 
• 5Y Stock Price Return: 168% (21.7% CAGR)
• 5Y FCF Growth: 16.8% CAGR
• ROIC: 64.6%
• Debt-to-EBITDA: 0.4

Founded more than 100 years ago in Wisconsin, Snap-On manufactures tools for use in the automotive, equipment, and other heavy-duty industries. The Snap-on brand is consistently ranked as the most preferred tool among automotive technicians. Customer connection and increased brand awareness have allowed Snap-on to expand operating margins (excluding financial services) from 6.5% in 2005 to 22% in 2023. 

Impressively, Snap-on has also paid an annual dividend without interruption or reduction since 1939. The current dividend yield is ~2.5%

• Stock Unlock Insights Score: 3.89 / 5 
• 5Y Stock Price Return: 90% (13.7% CAGR)
• 5Y FCF Growth: 14.0% CAGR
• ROIC: 20.1%
• Debt-to-EBITDA: 0.8

Another semiconductor industry player with outstanding returns, delivering close to 20% annual returns over the past decade. Though Cirrus often goes under the radar compared to the more prominent chip designers, it is a high-margin business with several tailwinds in its largest end markets - mainly smartphones and laptops. In fiscal year 2024, Apple accounted for a wild 87% of Cirrus Logic’s revenues. 

Even though the main capital allocation priority remains to invest in organic growth through R&D and adjacent M&A to reach broader end markets, Cirrus has also been buying back ~2% of shares outstanding annually over the past few years.

• Stock Unlock Insights Score: 4.06 / 5 
• 5Y Stock Price Return: 132% (18.3% CAGR) 
• 5Y FCF Growth: 17.6% CAGR
• ROIC: 20.3%
• Debt-to-EBITDA: 0