Ideas · Quality compounders below Graham Number
Quality compounders trading below Graham Number — week 2026-W31
High ROIC businesses where the latest price sits under Benjamin Graham’s intrinsic-value formula (EPS × (8.5 + 2g) × (4.4 / Y)).
| Ticker | Price | Graham IV | MOS | ROIC 10y |
|---|---|---|---|---|
| CPRT | $30.83 | $52.81 | 41.6% | 30.2% |
| OLLI | $70.41 | $114.98 | 38.8% | 16.4% |
| MLI | $65.82 | $147.37 | 55.3% | 29.6% |
CPRT
Copart
- Trades at $30.83 vs Graham intrinsic $52.81 → ~42% margin of safety on the formula.
- 10-year average ROIC about 30.2%.
- 10-year average ROE about 29.6%.
- Revenue CAGR (10y) about 15.5%.
- Yield on retained capital ≈ 16.6%.
OLLI
Ollie's Bargain Outlet Holdings, Inc.
- Trades at $70.41 vs Graham intrinsic $114.98 → ~39% margin of safety on the formula.
- 10-year average ROIC about 16.4%.
- 10-year average ROE about 13.5%.
- Revenue CAGR (10y) about 12.9%.
- Yield on retained capital ≈ 16.3%.
MLI
MUELLER INDUSTRIES INC
- Trades at $65.82 vs Graham intrinsic $147.37 → ~55% margin of safety on the formula.
- 10-year average ROIC about 29.6%.
- 10-year average ROE about 24.8%.
- Revenue CAGR (10y) about 8.2%.
- Yield on retained capital ≈ 25.6%.
How this list was built.
Graham intrinsic per share = EPS × (8.5 + 2g) × (4.4 / Y), with Y = 5.1% AAA bond yield default used by Intrinsic Terminal’s screener engine. Growth g is capped in the engine (industrial 8%, tech/cyclical 15%). Names must pass the week’s quality/value preset, then price < Graham IV. Ranked by quality score, then margin of safety % = (Graham − price) / Graham. Plausibility gates: MOS between 12–60%, quality score ≥ 7 (0–10 scale), price ≥ $5, common-share ticker shape. Recently published tickers are excluded.
Educational screen only — not investment advice, not a recommendation to buy or sell. Models can be wrong; always read the filings.