Nice article: http://moneycentral.msn.com/content/Investing/Findhotstocks/P90537.asp
Main takeouts, the companies you invest in should have or surpass the following benchmarks:
- ROE: 5-year Avg. >= 17%
- Return on Invested Capital: 5-year Avg. >= 17%
- Pre-tax profit Margin: 5-year Avg. >= 1.2* Industry Avg. Pretax Margin: 5-year Avg.
- Price/cash flow ratio <= 0.8* Industry Average price/cash flow ratio
- Price/cash flow ratio >=0.1
- Debt to Equity Ratio <= 0.8*Industry Average Debt to Equity Ratio