Reply To: What constitutes a quality small cap company? Home › Forums › General Discussion › Investing and stocks › What constitutes a quality small cap company? › Reply To: What constitutes a quality small cap company? 21 January 2021 at 12:43 #619 Edd Moderator Typical quality factors are: High gross margins Low volatility in margins Revenue and earnings growth High and stable ROE and ROIC/ROCE Solid balance sheet (low leverage, net cash position etc) High cash conversion In a screener I would also include some valuation metrics to allow for multiple expansion. More information in this discussion note from NBIM: https://www.nbim.no/en/publications/discussion-notes/2015/the-quality-factor/