Technology Stocks: Quality Scores and Valuation

Median quality

33 / 100

Scoring 70+

35

Median ROIC

-0.5%

Median op. margin

-0.7%

Pay a dividend

200 · 17%

Medians are computed across every technology company we cover with the relevant figure available, from the most recent filings. See the methodology for how each score is calculated.

What to look at in technology

Software and semiconductor businesses look very different from each other. Software tends to show high gross margins and heavy stock-based compensation, so check whether operating margin survives that cost. Semiconductors are cyclical and capital-hungry, so a single strong year says less than a decade of returns on capital does.

Highest quality scores in technology

Strongest dividends in technology