ROIC Growers: July 10, 2025

With a quick look at another potential central nervous system software company

It isn’t about the size of the competitive advantage. It’s really about what direction that competitive advantage is heading in.

Paul Black, WCM Investment Management

Ideally, we want to invest in companies that are growing their competitive advantage.

One way to quantify this is a growing ROIC.

We also know from Michael Mauboussin and Dan Callahan that companies that grow their ROIC tend to produce above-average returns.

The spreadsheet below is a simple screen that selects for companies that have grown their ROIC over the last 3 years with a market cap over $1 billion. I’ve sorted it by highest to lowest ROIC.

Paid subscribers will have access to the Excel file and can sort it any way they want. I also take a brief look at a company on the list that could be another Central Nervous System Software Company.