High Growth High ROE Low PE — Undervalued US Quality Compounders on NYSE & NASDAQ

About This Screen

Growth at a Reasonable Price (GARP) is the philosophy that bridges the gap between pure value investing and pure growth investing. The idea, popularised by Peter Lynch, is simple: there is no point paying a sky-high multiple for growth you can find elsewhere at a fraction of the cost. The best investments are companies that combine meaningful earnings and revenue growth with high-quality capital returns — all trading at a valuation that does not fully price in their potential.

This screen applies three simultaneous fundamental filters. First, Return on Equity (ROE) must exceed 15% — this ensures the company is generating genuine shareholder value and is not simply growing by deploying unlimited external capital. Second, both revenue growth and earnings growth (year-over-year, as sourced from our snapshot data) must each exceed 15% — confirming that topline expansion is translating into bottom-line acceleration. Third, the trailing P/E ratio must be between 1 and 25, filtering out loss-making companies and those already priced for perfection.

The combination of high ROE and high growth is rarer than it sounds. Many fast-growing companies achieve growth by reinvesting every dollar of earnings plus raising additional capital, which dilutes ROE over time. Companies that can grow rapidly while sustaining high ROE typically have durable competitive advantages — pricing power, switching costs, network effects, or low-capital-intensity business models. These are the characteristics of compounding machines that can generate exceptional long-term returns.

The Debt-to-Equity ratio is included in this table as a supplementary risk indicator. High-ROE companies sometimes achieve their returns through leverage rather than genuine business quality — a company with D/E above 2.0 and high ROE warrants extra scrutiny. Similarly, verify that the earnings growth figure reflects genuine operating improvement rather than a one-time gain, tax benefit, or accounting change. This screen refreshes daily so that any earnings release or data update is captured automatically.