{ "meta": { "document": "NPX-100 Founding Evaluation Workbook — Steward Panel Working File", "methodology_version": "v2.0.0", "methodology_hash": "438537fac91ca1fe9b582a2f41bbba8a789132e516eb9bfee2cedc75fa0c1c04", "evaluation_cycle_open": "2026-07-01", "watch_list_delivery": "2026-11-04", "first_publication": "2027-02-04", "workbook_last_updated": "2026-06-28", "scoring_basis_key": { "K": "Knowledge-based — steward inference from public reputation and general disclosures; requires primary-source verification before final scoring", "P": "Primary-sourced — cited from a named SEC filing, annual report, earnings release, or named third-party database with URL" }, "axis_weights": { "FC": 0.22, "EQ": 0.18, "CD": 0.15, "GV": 0.15, "ST": 0.10, "EC": 0.08, "SK": 0.07, "DH": 0.05 }, "composite_formula": "C = (FC*0.22)+(EQ*0.18)+(CD*0.15)+(GV*0.15)+(ST*0.10)+(EC*0.08)+(SK*0.07)+(DH*0.05)+B", "score_bands": { "EXEMPLAR": "101-105 (minimum 1 bonus point required)", "CONSTITUENT": "97-100", "WATCH_LIST": "85-96", "ENGAGEMENT": "75-84", "TRACKED": "below-75", "DISQUALIFIED": "eligibility gate S4 triggered" }, "calibration_note": "The 97-point constituent threshold is intentionally strict. Founding-cycle constituents are expected to be significantly fewer than 100. The index will NEVER include a company scoring below 97 to maintain a round count (S10.1). The pool size at each quarterly publication is itself a disclosed integrity signal.", "bonus_availability_note": "Bonus +2 (third-party calibration attestation) requires a recognized external body to have verified the company's forecast accuracy against a Brier-scored ledger. This credential does not exist in the market as of the 2026 founding cycle — no company can earn it until AEQUARA's Brier Ledger itself builds a 4-quarter track record (earliest: 2028-Q1). Realistic maximum bonus at founding: +3." }, "candidates": [ { "id": "BR", "company": "Broadridge Financial Solutions Inc", "exchange": "NYSE", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 22.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 91, "band": "FULL", "basis": "P", "notes": "Publishes explicit 3-year financial targets at each investor day: FY24-FY26 targets = 5-8% organic recurring revenue CAGR, 7-9% total recurring revenue CAGR, 50+bps annual margin expansion, 8-12% adj EPS CAGR. FY25 actuals: 7% recurring revenue growth (within 7-9% range), 11% adj EPS growth (within 8-12% range). FY26 guidance maintained at 5-7% recurring revenue, 8-12% adj EPS. Consistent delivery within stated ranges. FC-3 FULL: all three primary metrics guided with quantified ranges. FC-4 FULL: 3-year plan published and tracked. Minor cap for FY24-FY26 range being 7 percentage points wide on EPS (15% of midpoint for EPS guidance, borderline).", "citations": [ "SEC Form 8-K FY2026: https://www.sec.gov/Archives/edgar/data/0001383312/000138331226000007/ex991investorpresentatio.htm", "SEC Form 8-K FY2025 earnings: https://www.sec.gov/Archives/edgar/data/1383312/000138331225000032/ex991earningsrelease1q2026.htm", "Investor Presentation Feb 2026: https://s203.q4cdn.com/209299927/files/doc_presentations/2026/Feb/06/Broadridge-Investor-Presentation_February-2026.pdf" ] }, "EQ": { "score": 86, "band": "FULL", "basis": "K", "notes": "Financial technology company. FCF/NI typically >0.90x (VERIFY from 10-K cash flow statements). Low accruals for processing-fee business model. Big-4 auditor. Earnings variability low — predictable SaaS-like recurring revenue (78%+ of revenue is recurring). VERIFY: accruals ratio from EDGAR 10-K.", "citations": [] }, "CD": { "score": 83, "band": "FULL", "basis": "K", "notes": "ROIC above WACC — financial tech businesses are asset-light with high returns. M&A track record: recent acquisitions generally synergy-delivering. Capital return: dividend raised consistently, buybacks executed. VERIFY ROIC-WACC spread from 10-K and WACC estimate.", "citations": [] }, "GV": { "score": 85, "band": "FULL", "basis": "P", "notes": "2025 proxy: 8 nominated directors, majority independent. Multiple independent committees. Say-on-pay vote historically >85% (VERIFY exact percentage from most recent proxy). Single class shares. VERIFY: board independence exact percentage from DEF 14A.", "citations": [ "DEF 14A FY2025: https://www.sec.gov/Archives/edgar/data/0001383312/000114036125037069/ny20050521x1_def14a.htm" ] }, "ST": { "score": 92, "band": "FULL", "basis": "P", "notes": "Exceptional: publishes 3-year financial targets at each investor day with explicit comparison to prior-cycle targets. FY24-FY26 plan follows FY21-FY23 plan, with explicit comparison. Segment reporting consistent. This is one of the highest-quality strategic transparency disclosures globally — the 3-year target structure is effectively a public prediction registration.", "citations": [ "Investor Presentation Feb 2026: https://s203.q4cdn.com/209299927/files/doc_presentations/2026/Feb/06/Broadridge-Investor-Presentation_February-2026.pdf" ] }, "EC": { "score": 83, "band": "FULL", "basis": "K", "notes": "Investor day explicitly compares actual results to prior 3-year targets, identifying where the company underdelivered. This is a form of institutionalized error acknowledgment — unusual at this level of formality. CEO letters less individually candid than Buffett/Bezos style, but the structured target-vs-actual format scores well on EC-1/EC-2. VERIFY: specific instances of below-target acknowledgment in investor day materials.", "citations": [] }, "SK": { "score": 82, "band": "FULL", "basis": "K", "notes": "Financial technology employer. Glassdoor rating approximately 4.0 (VERIFY). Limited customer-facing concentration risk (B2B financial infrastructure). Supplier stability: no documented supplier conflicts. VERIFY: Glassdoor rating from current data.", "citations": [] }, "DH": { "score": 82, "band": "FULL", "basis": "K", "notes": "Proxy processing near-monopoly (>80% US market share in investor communications). Switching costs extremely high — changing proxy/data providers is a major operational undertaking for broker-dealers. Long-term investment in financial technology infrastructure ongoing. Net debt conservative. VERIFY: market share from annual report.", "citations": [] } }, "bonus": 3, "bonus_notes": "+1 ISSB/TCFD disclosure (VERIFY independent assurance); +1 investor day target-vs-actual = EC-bonus qualifying acknowledgment; +1 3-year prediction structure analogous to prediction ledger (partial credit, steward discretion)", "composite": 89.4, "composite_calc": "(91*0.22)+(86*0.18)+(83*0.15)+(85*0.15)+(92*0.10)+(83*0.08)+(82*0.07)+(82*0.05)+3", "band": "WATCH_LIST", "path_to_constituent": "Need all axes at ~95 average + bonus to reach 97. Primary gaps: CD (83) and GV (85) need improvement. Richer primary-source scoring may lift EQ, GV scores. EC is structurally strong — the 3-year target format is the best error-culture mechanism in the founding pool.", "priority": "HIGH — most likely founding-cycle watch list leader" }, { "id": "ADP", "company": "Automatic Data Processing Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 115.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 90, "band": "FULL", "basis": "P", "notes": "FY guidance published with specific adj EPS growth ranges. FY24 guidance: 8-10% adj EPS growth. Actual: $9.18 adj EPS, +12% vs FY23 $8.19 (slightly above high end; minor sandbagging signal but below systematic threshold). FY25 guidance: 8-10% adj EPS growth. Actual: $10.01, +9% (within range, HIT). FY26 guidance: initially 8-10%, raised to 9-10% at Q2. Pattern: conservative initial range, consistent delivery within. Revenue guidance also provided. FC-3 FULL: EPS, revenue, margin all guided with quantified ranges. FC-1 near-FULL: hit rate 80%+ across trailing 12 quarters (VERIFY exact count). FC-2: FY24 beat of 12% is a one-year outlier, not systematic sandbagging at 8-of-12 threshold.", "citations": [ "ADP Q4 FY2025 8-K: https://www.sec.gov/Archives/edgar/data/0000008670/000000867025000026/q4fy25exhibit99.htm", "ADP Q4 FY2024 8-K: https://www.sec.gov/Archives/edgar/data/0000008670/000000867024000017/q4fy24exhibit99.htm", "ADP Q2 FY2026 8-K: https://www.sec.gov/Archives/edgar/data/0000008670/000000867026000006/q2fy26exhibit99.htm" ] }, "EQ": { "score": 87, "band": "FULL", "basis": "K", "notes": "Payroll/HCM SaaS: FCF/NI typically 0.90-1.00x (VERIFY). Low accruals — client funds held generate float income, not accrual-driven earnings. Earnings variability: low, consistent 8-12% EPS growth for many years. Big-4 auditor, no PCAOB issues. VERIFY: FCF/NI from 10-K trailing 3 years.", "citations": [] }, "CD": { "score": 86, "band": "FULL", "basis": "K", "notes": "ROIC consistently above WACC (payroll SaaS is asset-light, ROIC 30%+). Dividend raised for 49 consecutive years — exceptional CD-3 score. M&A: limited large acquisitions, bolt-ons generally synergy-delivering. No goodwill impairments above 5% of acquisition price in recent years (VERIFY). Capital return policy explicitly documented.", "citations": [] }, "GV": { "score": 88, "band": "FULL", "basis": "P", "notes": "Say-on-pay vote: 90% in favor at 2024 Annual Meeting. Board: majority independent directors, fully independent audit/compensation/nominating committees. Single-class shares. No classified board. Strong governance disclosure. VERIFY: exact board independence percentage and most recent say-on-pay result from 2025 proxy.", "citations": [ "ADP DEF 14A FY2025: https://www.sec.gov/Archives/edgar/data/0000008670/000130817925000607/adp014341-def14a.htm", "ADP DEF 14A FY2024: https://www.sec.gov/Archives/edgar/data/0000008670/000130817924000714/adp4345811-def14a.htm" ] }, "ST": { "score": 88, "band": "FULL", "basis": "K", "notes": "Provides investor day financial targets and tracks them. Segment reporting consistent (HCM, Employer Services, PEO Services) for many years. Strategic pivots (AI-enabled HCM, Lyric platform) disclosed with targets and timelines. VERIFY: investor day materials for quantified target tracking.", "citations": [] }, "EC": { "score": 79, "band": "FULL", "basis": "K", "notes": "Annual CEO letters are professional but not extensively candid on specific mistakes. When guidance is missed, management acknowledges the delta in earnings calls (EC-2 PARTIAL-FULL). No major strategic failures requiring EC-3 disclosure in recent years. VERIFY: trailing 5 CEO letters for EC-1 scoring.", "citations": [] }, "SK": { "score": 84, "band": "FULL", "basis": "K", "notes": "Large employer (~60,000 employees). Employee metrics: Glassdoor rating approximately 3.9-4.0 (VERIFY). Client retention >90% (switches to competing payroll providers are rare). No major labor disputes. Supplier stability: technology vendor relationships stable. VERIFY: Glassdoor rating and client retention figure from IR materials.", "citations": [] }, "DH": { "score": 87, "band": "FULL", "basis": "K", "notes": "Switching cost moat is very strong — changing payroll providers requires data migration, compliance re-setup, and HR process change management. Clients who switch typically only do so after a crisis. 50+ years of operating history. R&D investment in AI-enabled HCM (Lyric) increasing. Net debt conservative relative to earnings.", "citations": [] } }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD disclosure (VERIFY independent assurance); +1 CEO acknowledges quantified guidance miss in earnings communications (EC-1 bonus meets the standard per trailing letters — VERIFY)", "composite": 88.9, "composite_calc": "(90*0.22)+(87*0.18)+(86*0.15)+(88*0.15)+(88*0.10)+(79*0.08)+(84*0.07)+(87*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "EC (79) is the primary drag. CEO letter candor is professional but not deeply error-acknowledging. If EC can be lifted to 88 via deeper review of trailing letters, composite rises ~0.72 points. Primary axis lift opportunity: EC, then ST (verify 3-year target tracking depth).", "priority": "HIGH" }, { "id": "WKL", "company": "Wolters Kluwer NV", "exchange": "Euronext Amsterdam", "ticker_local": "WKL.AS", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "NL", "market_cap_usd_b_approx": 28.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 82, "band": "FULL", "basis": "P", "notes": "Annual guidance: 'high single-digit' diluted adj EPS growth in constant currencies. 2024 actual: +9% constant currency (within 'high single-digit'). 2025 actual: +9% constant currency. 2026 guidance: 'high single-digit'. FC-3: PARTIAL — guidance is qualitative ('high single-digit' = 7-9%) rather than explicit EPS-range format with stated narrow ranges. FC-1: hit rate high (VERIFY exact quarterly record) but specificity gap prevents FULL on FC-3. FC-4: medium-term performance targets tracked in annual report vs prior stated targets.", "citations": [ "WKL 2025 Full-Year Report (GlobeNewswire): https://www.globenewswire.com/news-release/2026/02/25/3244280/0/en/Wolters-Kluwer-2025-Full-Year-Report.html", "WKL 2024 Full-Year Report: https://www.globenewswire.com/news-release/2025/02/26/3032585/0/en/Wolters-Kluwer-2025-Full-Year-Report.html" ] }, "EQ": { "score": 90, "band": "FULL", "basis": "K", "notes": "Professional information services: FCF/NI ratio typically 0.92-1.05x. Low accruals (subscription-model revenue recognized ratably). Earnings variability: low — organic growth has been 5-7% for many consecutive years. Big-4 auditor (KPMG). VERIFY: accruals ratio and FCF/NI from ESEF annual report filings.", "citations": [] }, "CD": { "score": 88, "band": "FULL", "basis": "K", "notes": "ROIC well above WACC for information services (ROIC ~25%+ estimated). M&A track record: consistent bolt-on acquisitions in legal/compliance/health software, generally integration-positive. Operating margin 27.1% in 2024 — improving trend. Capital return: dividends paid consistently, buybacks prudent. VERIFY: ROIC-WACC spread from annual report.", "citations": [] }, "GV": { "score": 87, "band": "FULL", "basis": "K", "notes": "Dutch governance: two-tier board structure. Supervisory Board majority independent. Say-on-pay: Dutch advisory vote (VERIFY most recent result). No dual-class structure for NPX purposes. GV-3 nuance: Dutch law has some differences from US governance standards (priority shares possible) — VERIFY any protective mechanisms. VERIFY: supervisory board composition from Annual Report.", "citations": [] }, "ST": { "score": 93, "band": "FULL", "basis": "P", "notes": "Exceptional: annual report contains detailed performance scorecard comparing actual results to prior-year stated targets across multiple dimensions. Medium-term financial targets published (2024-2026 target: high single-digit adj EPS growth, operating margin expansion, FCF conversion). The annual report explicitly states what was targeted and what was achieved — the format is unique in its transparency.", "citations": [ "WKL 2024 Annual Report: https://assets.contenthub.wolterskluwer.com/api/public/content/2630611-wolters-kluwer-2024-annual-report-cd216d4be7?v=7a259453", "WKL Guidance page: https://www.wolterskluwer.com/en/investors/financials/guidance" ] }, "EC": { "score": 85, "band": "FULL", "basis": "K", "notes": "Annual report's target-vs-actual scorecard is a form of institutionalized error disclosure. When targets are missed (e.g., margin targets delayed), the report explicitly acknowledges the gap and states the revised target. CEO/CFO letters acknowledge specific underperformance in segments. More candid than most peers on EC-1/EC-2 by structure. VERIFY: trailing 5 annual reports for explicit error acknowledgment with quantification.", "citations": [] }, "SK": { "score": 82, "band": "FULL", "basis": "K", "notes": "~21,000 employees globally, primarily professional staff. Glassdoor rating: limited data for Dutch-listed company on US platform; estimated 3.8-4.0 (VERIFY). Customer retention: professional information services have extremely high retention (switching tax/legal software is very costly). No major labor actions. VERIFY: European employee engagement data from annual report sustainability section.", "citations": [] }, "DH": { "score": 88, "band": "FULL", "basis": "K", "notes": "Switching cost moat: Wolters Kluwer's software is embedded in professional workflows at law firms, tax practices, and healthcare systems. Changing vendors requires retraining and data migration — very high switching cost. R&D investment in AI-augmented professional tools growing. Net debt conservative. Capital structure strong (investment-grade).", "citations": [] } }, "bonus": 3, "bonus_notes": "+1 ISSB/TCFD disclosure with independent assurance (published in 2024 Annual Report — VERIFY assurance scope); +1 annual report target-vs-actual scorecard qualifies as EC-bonus acknowledgment; +1 SBTi climate target submission (January 2025) = sustainability leadership", "composite": 88.7, "composite_calc": "(82*0.22)+(90*0.18)+(88*0.15)+(87*0.15)+(93*0.10)+(85*0.08)+(82*0.07)+(88*0.05)+3", "band": "WATCH_LIST", "path_to_constituent": "FC (82) is the primary gap — 'high single-digit' guidance is PARTIAL on specificity (FC-3). If WKL moves to providing explicit EPS ranges with stated percentages (e.g., €5.50-€5.70 adj EPS), FC could lift to 90+, adding ~1.8 to composite. Combined with deeper primary-source verification of EQ and GV, path to ~92-93. With +5 bonus not yet achievable at founding, constituent band requires FC lift.", "priority": "HIGH — strongest EC + ST profile in pool" }, { "id": "CTAS", "company": "Cintas Corporation", "exchange": "NASDAQ", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 85.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 85, "band": "FULL", "basis": "P", "notes": "Provides specific annual EPS and revenue guidance ranges. FY2025: initial guidance $4.28-$4.34 EPS, raised to $4.36-$4.40. FY2026: initial $4.71-$4.85 EPS, raised to $4.74-$4.86, subsequently $4.81-$4.88. Pattern of consistent mid-year raises from a conservative initial range. Sandbagging check: FY2026 initial midpoint $4.78; if final comes in at ~$4.92, that's +2.9% above high end — below the 12% systematic sandbagging threshold. FC-3 FULL: EPS + revenue + operating margin all guided. FC-1: hit rate appears >80% (VERIFY exact trailing 12 quarters).", "citations": [ "Cintas Q2 FY2026 8-K: https://www.sec.gov/Archives/edgar/data/0000723254/000072325425000038/ex992025-11x30.htm", "Cintas FY2025 8-K: https://www.sec.gov/Archives/edgar/data/0000723254/000072325425000013/ex992025-5x31.htm" ] }, "EQ": { "score": 88, "band": "FULL", "basis": "K", "notes": "Business services model: FCF/NI typically 0.90-1.00x. Low accruals — uniform rental and facility services generates consistent cash. Earnings variability: low. EPS growth has been consistently 8-15% for many years. Big-4 auditor. Record operating margin 22.7% Q1 FY2026 signals operating leverage quality. VERIFY: FCF/NI and accruals ratio from trailing 10-K.", "citations": [] }, "CD": { "score": 87, "band": "FULL", "basis": "K", "notes": "ROIC: approximately 20-22% (VERIFY). Route density moat creates capital efficiency — each new customer on an existing route has near-zero marginal cost. Dividend raised for many consecutive years. M&A: occasional small tuck-ins, no major goodwill impairment history. Capital return: buybacks and dividends documented. VERIFY: ROIC from 10-K, M&A track record.", "citations": [] }, "GV": { "score": 86, "band": "FULL", "basis": "K", "notes": "Single-class shares. Board majority independent. Founder family (Farmer family) representation on board — assess independence mix. Say-on-pay: typically strong (VERIFY most recent vote). Compensation aligned with performance metrics. VERIFY: exact board composition from most recent proxy.", "citations": [] }, "ST": { "score": 85, "band": "FULL", "basis": "K", "notes": "Consistent segment reporting: Uniform Services, First Aid and Safety, All Other. No major segment restructuring in 5+ years. Long-term revenue and margin targets disclosed in investor communications. VERIFY: investor day materials for quantified target tracking.", "citations": [] }, "EC": { "score": 75, "band": "FULL", "basis": "K", "notes": "CEO letters professional but not deeply error-acknowledging. When guidance is raised or maintained, management provides operational context. No major strategic failures requiring EC-3 disclosure in recent history. Limited evidence of CEO letter acknowledgment of specific quantified mistakes (EC-1 boundary case). VERIFY: trailing 5 annual report CEO/chairman letters.", "citations": [] }, "SK": { "score": 85, "band": "FULL", "basis": "K", "notes": "Known as a strong employer in the business services sector. Low voluntary turnover for a field-service business. Glassdoor rating estimated 3.9-4.1 (VERIFY). Customer retention very high (uniform services contracts are multi-year). No major labor actions in recent years. VERIFY: current Glassdoor rating.", "citations": [] }, "DH": { "score": 86, "band": "FULL", "basis": "K", "notes": "Route density moat: Cintas serves 1M+ businesses; the route network is extremely difficult to replicate. Switching costs: changing uniform providers involves contract terms, rebranding, and operational change. R&D investment in digital ordering/tracking systems. Net debt conservative. Investment-grade rated.", "citations": [] } }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD disclosure (VERIFY assurance scope)", "composite": 86.2, "composite_calc": "(85*0.22)+(88*0.18)+(87*0.15)+(86*0.15)+(85*0.10)+(75*0.08)+(85*0.07)+(86*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "EC (75) is the primary constraint. If EC can be lifted via deeper review of CEO letters and demonstration of quantified error acknowledgment, composite rises. FC could be impacted if sandbagging analysis of trailing 12 quarters shows systematic beat. Priority: verify EC and FC-2 from primary sources.", "priority": "MEDIUM-HIGH" }, { "id": "MSFT", "company": "Microsoft Corporation", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 3100.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 86, "band": "FULL", "basis": "K", "notes": "Provides quarterly guidance for revenue by segment and EPS. Guidance ranges are typically narrow. Consistent delivery within ranges. Occasional upside surprises (Azure growth beats) but not at systematic sandbagging level. FC-4: strategic targets (cloud, AI) have quantified elements (e.g., $500B US AI investment commitment) that can be tracked. VERIFY: trailing 12 quarters guidance accuracy from 8-K earnings releases.", "citations": [] }, "EQ": { "score": 91, "band": "FULL", "basis": "K", "notes": "FCF/NI: ~1.05-1.15x (deferred revenue dynamics in cloud subscriptions result in FCF exceeding reported NI). Very low accruals ratio. Earnings variability: low relative to sector. Big-4 auditor (Deloitte). No material weaknesses or restatements. VERIFY: FCF/NI from 10-K trailing 3 years.", "citations": [] }, "CD": { "score": 88, "band": "FULL", "basis": "K", "notes": "ROIC: approximately 35-45%. ROIC-WACC spread consistently positive and large. M&A: Activision acquisition at $69B is a large bet — goodwill impairment risk exists but no impairment as of filing dates. LinkedIn, GitHub integrations generally value-accretive. Capital return: buybacks and dividends consistent. VERIFY: ROIC from 10-K, Activision goodwill carrying value.", "citations": [] }, "GV": { "score": 88, "band": "FULL", "basis": "K", "notes": "Single-class shares. Board majority independent. Strong separate Chairman/CEO structure. Say-on-pay: consistently 95%+ votes in favor. Compensation well-designed with performance linkage. Audit oversight strong. VERIFY: most recent say-on-pay vote and board independence percentage from proxy.", "citations": [] }, "ST": { "score": 87, "band": "FULL", "basis": "K", "notes": "Three Clouds strategy explicitly stated and tracked. Revenue by Cloud segment (Azure %, Office 365 seats, Dynamics) consistently disclosed. Long-term AI investment targets disclosed. Segment reporting consistent. VERIFY: investor day quantified targets.", "citations": [] }, "EC": { "score": 85, "band": "FULL", "basis": "K", "notes": "Nadella era: notably candid for a mega-cap CEO. Nokia acquisition acknowledged as a mistake. Surface RT acknowledged. Mobile miss acknowledged. These are documented in CEO communications and media. This is unusual at Microsoft's scale. EC-1: at least 2 of trailing 5 letters (or equivalent CEO communications) acknowledge material failures with context — VERIFY from annual reports. EC-2: guidance misses acknowledged in earnings calls. EC-3: Activision challenges have been discussed.", "citations": [] }, "SK": { "score": 87, "band": "FULL", "basis": "K", "notes": "Glassdoor rating: approximately 4.3-4.5 (VERIFY). CEO approval: Nadella consistently 90%+. No major labor actions. Customer trust: enterprise customers very loyal. Supplier stability: major cloud vendor relationships stable. VERIFY: current Glassdoor rating.", "citations": [] }, "DH": { "score": 93, "band": "FULL", "basis": "K", "notes": "Platform lock-in: Azure + Office 365 + Dynamics is the most embedded enterprise software stack globally. Switching costs for enterprise customers are extremely high. R&D investment: one of the largest R&D spenders globally. Capital structure conservative (net cash). AI leadership position (OpenAI partnership, Copilot) creates additional competitive advantage.", "citations": [] } }, "bonus": 3, "bonus_notes": "+1 ISSB/TCFD disclosure with independent assurance (Microsoft publishes comprehensive sustainability report with third-party assurance); +1 Nadella CEO communications acknowledge quantified material mistakes (Nokia, Surface RT); +1 AI-specific prediction disclosures (Azure growth rate public commitments tracked quarterly)", "composite": 91.2, "composite_calc": "(86*0.22)+(91*0.18)+(88*0.15)+(88*0.15)+(87*0.10)+(85*0.08)+(87*0.07)+(93*0.05)+3", "band": "WATCH_LIST", "path_to_constituent": "FC (86) is the primary gap. Quarterly guidance windows are relatively short (1 quarter ahead). If Microsoft adopts full-year guidance with narrow ranges (as opposed to quarterly ranges only), FC-3 would lift significantly. EC (85) is strong for a mega-cap. Primary source verification likely lifts GV to 90+ and could lift composite to 93-94.", "priority": "HIGH" }, { "id": "V", "company": "Visa Inc", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 580.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 88, "band": "FULL", "basis": "K", "notes": "Provides annual revenue growth guidance with stated ranges and quarterly updates. Typically guided as a range (e.g., 'mid-teens' or specific %). Delivery within ranges is consistent. FC-3: PARTIAL — some guidance is in qualitative bands rather than explicit numeric ranges. FC-1: hit rate high. VERIFY: trailing 12 quarters guidance specificity and accuracy from 8-K earnings releases.", "citations": [] }, "EQ": { "score": 94, "band": "FULL", "basis": "K", "notes": "Network economics: FCF/NI consistently >1.0x. Near-zero tangible assets needed to generate earnings. Accruals ratio: among lowest of any large-cap globally. Earnings variability: very low. Big-4 auditor. EQ-4 FULL: no material weaknesses, long-tenure Big-4 relationship within appropriate range. This may be the highest EQ score in the founding pool.", "citations": [] }, "CD": { "score": 92, "band": "FULL", "basis": "K", "notes": "ROIC: 40-50%+ (network business requires minimal capital). ROIC-WACC spread exceptional. M&A: occasional fintech bolt-ons, no major goodwill impairments. Capital return: buybacks and dividends well-documented with explicit stated targets. FCF yield: above threshold. Best-in-class capital discipline for a payment network.", "citations": [] }, "GV": { "score": 88, "band": "FULL", "basis": "K", "notes": "Single-class shares. Majority independent board. Say-on-pay: historically 93%+. No classified board. Compensation heavily performance-linked. VERIFY: most recent proxy for exact board independence % and say-on-pay vote.", "citations": [] }, "ST": { "score": 86, "band": "FULL", "basis": "K", "notes": "Consistent segment reporting (US, International). Strategic targets for Visa Direct, Visa B2B Connect stated at investor days. Long-term ambition: expand total addressable market beyond card-present to new payment flows. VERIFY: investor day quantified targets from most recent investor day.", "citations": [] }, "EC": { "score": 73, "band": "PARTIAL", "basis": "K", "notes": "EC is the weak axis for Visa. Few publicly acknowledged strategic failures (the business has been highly successful). CEO letters tend toward success narrative. FX headwinds acknowledged but external attribution. Limited evidence of quantified internal error acknowledgment in trailing letters (EC-1 boundary: few material failures to acknowledge, which makes FULL impossible even with candor). VERIFY: trailing 5 annual report/CEO letters for EC-1 scoring.", "citations": [] }, "SK": { "score": 83, "band": "FULL", "basis": "K", "notes": "Glassdoor rating: approximately 4.1-4.3 (VERIFY). Employee retention strong (fintech company known as a good employer). Customer trust: merchants depend on Visa but also have complaints about interchange rates (SK-2 nuance). No major class actions from customers in context of SK-2 (merchant interchange class actions are ongoing — VERIFY gate risk and SK penalty).", "citations": [] }, "DH": { "score": 95, "band": "FULL", "basis": "K", "notes": "Visa's two-sided network moat is one of the strongest documented economic moats globally. 4+ billion cards, 100M+ merchants, 15,000+ financial institution partners. Switching costs: merchants who accept Visa cannot switch without losing access to Visa cardholders. Network effects documented and persistent for 60+ years. DH is the strongest score in the pool for Visa.", "citations": [] } }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD disclosure (VERIFY assurance scope); +1 third-party verified payment security/network statistics (partial proxy for calibration attestation — steward discretion required)", "composite": 90.1, "composite_calc": "(88*0.22)+(94*0.18)+(92*0.15)+(88*0.15)+(86*0.10)+(73*0.08)+(83*0.07)+(95*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "EC (73 — PARTIAL) is the binding constraint. Visa cannot reach 97 composite with EC in PARTIAL band — the minimum-axis floor for constituents is 40, but PARTIAL (40-74) prevents composite from reaching 97 without an impossible score on all other axes. If EC can be lifted to 80+, composite rises ~0.6 points. The structural issue: few material failures to acknowledge. Consider: could Visa earn EC credit for acknowledging interchange regulatory risk and its impact on guidance? VERIFY.", "priority": "HIGH — potential constituent if EC can reach FULL" }, { "id": "MA", "company": "Mastercard Incorporated", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 470.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 88, "band": "FULL", "basis": "K", "notes": "Very similar to Visa. Consistent guidance delivery. VERIFY: trailing 12 quarters.", "citations": []}, "EQ": {"score": 93, "band": "FULL", "basis": "K", "notes": "Network economics identical to Visa. Near-perfect FCF/NI, very low accruals. VERIFY.", "citations": []}, "CD": {"score": 91, "band": "FULL", "basis": "K", "notes": "ROIC 40-50%+. Clean M&A (Vocalink, Nets — generally value-accretive). Capital return: buybacks and dividends. VERIFY.", "citations": []}, "GV": {"score": 88, "band": "FULL", "basis": "K", "notes": "Single-class. Majority independent. Say-on-pay typically 93%+. VERIFY proxy.", "citations": []}, "ST": {"score": 86, "band": "FULL", "basis": "K", "notes": "Consistent reporting. Long-term targets for new payment flows. VERIFY investor day materials.", "citations": []}, "EC": {"score": 76, "band": "FULL", "basis": "K", "notes": "Slightly more candid than Visa in CEO communications — CEO Michael Miebach's letters acknowledge market positioning challenges. More EC credit than Visa. VERIFY trailing letters.", "citations": []}, "SK": {"score": 84, "band": "FULL", "basis": "K", "notes": "Glassdoor approximately 4.2 (VERIFY). Strong employee metrics. Merchant class action risk (similar to Visa) — VERIFY SK-2 impact.", "citations": []}, "DH": {"score": 94, "band": "FULL", "basis": "K", "notes": "Network moat comparable to Visa. 60+ years of network building. Durability slightly below Visa only due to smaller absolute scale.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD; +1 CEO letter acknowledgment of competitive positioning risks", "composite": 90.0, "composite_calc": "(88*0.22)+(93*0.18)+(91*0.15)+(88*0.15)+(86*0.10)+(76*0.08)+(84*0.07)+(94*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Same EC constraint as Visa. EC (76) is at the bottom of FULL band — borderline. Needs lift to 85+ for composite to approach 93+.", "priority": "HIGH" }, { "id": "ASML", "company": "ASML Holding NV", "exchange": "Euronext Amsterdam / NASDAQ (ADR)", "ticker_local": "ASML.AS", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "NL", "market_cap_usd_b_approx": 300.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 84, "band": "FULL", "basis": "P", "notes": "Provides annual revenue guidance with stated ranges. 2026: initially €34-39B, raised to €36-40B after Q1 2026 (€8.8B Q1 revenue, gross margin 53%). 2025: revenue guidance hit. 2024: 2025 guidance initially wide (€30-40B) due to cycle uncertainty — FC-3 PARTIAL for that period. Backlog provides exceptional visibility (€38.8B entering 2026). FC-3: PARTIAL for wide range years, FULL for narrow range years. Consistent direction of guidance delivery (beat or within range). VERIFY: trailing 12 quarters guidance ranges vs actuals.", "citations": [ "ASML Q1 2026: https://www.tikr.com/blog/asml-stock-raises-2026-guidance-after-e8-8b-q1-revenue-beat", "ASML 2026 guidance (CNBC): https://www.cnbc.com/2026/01/28/asml-q4-2025-earnings-report.html", "ASML SEC Form 6-K FY2025: https://www.sec.gov/Archives/edgar/data/0000937966/000162828026003701/a2026_01x28xpresentation.htm" ] }, "EQ": {"score": 90, "band": "FULL", "basis": "K", "notes": "Equipment manufacturer with high FCF/NI. Accruals: moderate for capital equipment (long-cycle delivery schedules create timing differences — VERIFY). Earnings variability: sector-cyclical but ASML has pricing power that smooths cycles. Big-4 audit (KPMG). VERIFY: accruals ratio from annual report.", "citations": []}, "CD": {"score": 91, "band": "FULL", "basis": "K", "notes": "ROIC extremely high (EUV monopoly pricing). No capital allocation mistakes visible — no M&A complexity, no goodwill impairments. Capital return: progressive dividend + buybacks. €38.8B backlog = exceptional capital planning visibility. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Dutch governance. Supervisory Board majority independent. No dual-class structure. Say-on-pay: VERIFY. Compensation well-structured (performance share units linked to revenue and ROIC targets). VERIFY: Dutch AGM materials.", "citations": []}, "ST": {"score": 88, "band": "FULL", "basis": "K", "notes": "Provides long-term scenarios (2025-2030 revenue scenarios disclosed at 2022 investor day). Revenue scenarios revised at 2024 investor day. Consistent disclosure of backlog, bookings, and capacity plans. Segment reporting: systems and service is consistent. VERIFY: investor day scenario tracking.", "citations": []}, "EC": {"score": 77, "band": "FULL", "basis": "K", "notes": "CEO Peter Wennink's communications acknowledge China revenue exposure and geopolitical constraints candidly. When 2024 guidance was revised (China headwinds), management was explicit about the cause. EC-2: material misses acknowledged with explanation. EC-1: Dutch engineering culture tends toward pragmatic, fact-based disclosure rather than American-style storytelling. VERIFY: trailing annual report letters.", "citations": []}, "SK": {"score": 85, "band": "FULL", "basis": "K", "notes": "~40,000 employees. Engineering talent retention is critical. Glassdoor: approximately 4.0-4.2 for Dutch technology employer (VERIFY). Customer: TSMC, Samsung, Intel — long-term partnership nature = SK-2 FULL (no class actions, deep trust relationships). Supplier stability: critical IP suppliers (Carl Zeiss for optics) are long-term partners. VERIFY: European employee data.", "citations": []}, "DH": {"score": 97, "band": "FULL", "basis": "K", "notes": "EUV lithography monopoly is one of the most durable competitive positions in global industry. The technology requires ~100,000 components and 15+ years of development. Competitors are not within 10 years of replication. This is the highest DH score in the founding pool — possibly the single strongest documented moat of any publicly listed company.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY Dutch sustainability disclosure with assurance); +1 CEO acknowledges geopolitical impact on China guidance explicitly (EC-bonus qualifying)", "composite": 89.5, "composite_calc": "(84*0.22)+(90*0.18)+(91*0.15)+(87*0.15)+(88*0.10)+(77*0.08)+(85*0.07)+(97*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "FC (84) is the primary constraint — wide guidance ranges in cyclical downturns penalize FC-3. As ASML's 2026 guidance narrows (€36-40B is still a 10% spread at midpoint), FC-3 approaches FULL. Path: if ASML adopts narrower annual ranges (backlog supports it), FC could lift to 88-90 → composite ~91-92. DH (97) is a significant strength pulling composite up. Verify EC from annual report — Dutch engineering candor may score higher than estimated.", "priority": "HIGH" }, { "id": "ITW", "company": "Illinois Tool Works Inc", "exchange": "NYSE", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 72.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 87, "band": "FULL", "basis": "K", "notes": "Provides specific annual EPS and operating margin guidance by segment. 80/20 simplification makes segment reporting very clean and guidance very achievable. Consistent delivery within stated ranges. VERIFY: trailing 12 quarters from 8-K earnings releases.", "citations": []}, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "High FCF/NI (industrial manufacturing with high margins from 80/20). Low accruals relative to sector. Earnings stability improved dramatically post-80/20. VERIFY: accruals ratio and FCF/NI from 10-K.", "citations": []}, "CD": {"score": 90, "band": "FULL", "basis": "K", "notes": "ROIC-WACC spread: exceptional. No acquisitions since 80/20 restructuring began (~2013) — CD-2 is effectively neutral (scored at median per methodology). Capital return: 50+ consecutive years of dividend increases. Buyback program well-documented. VERIFY: ROIC from 10-K.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single-class. Majority independent. Say-on-pay: typically 90%+. Strong compensation governance. VERIFY: most recent proxy.", "citations": []}, "ST": {"score": 88, "band": "FULL", "basis": "K", "notes": "80/20 enterprise strategy explicitly stated and tracked for 10+ years. Organic growth targets and margin improvement targets disclosed and tracked. Segment reporting consistent — no restructuring. VERIFY: investor day materials for target tracking.", "citations": []}, "EC": {"score": 78, "band": "FULL", "basis": "K", "notes": "CEO letters acknowledge market headwinds with specificity. Some quantification of organic volume declines vs pricing mix. Not at Buffett/Bezos candor level but better than average for industrials. VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": {"score": 83, "band": "FULL", "basis": "K", "notes": "~45,000 employees. Glassdoor: approximately 3.8-4.0 (VERIFY). Customer retention: ITW's diversified end-markets mean no customer concentration. No major labor actions. VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 87, "band": "FULL", "basis": "K", "notes": "Intangible asset moat: 85+ businesses with strong niche positions, documented IP. R&D investment: modest but focused. Capital structure: moderate net debt within investment-grade range. 80/20 simplification has created durable margin structure. VERIFY: net debt/EBITDA from 10-K.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 80/20 strategy targets explicitly tracked vs prior stated goals", "composite": 87.6, "composite_calc": "(87*0.22)+(88*0.18)+(90*0.15)+(86*0.15)+(88*0.10)+(78*0.08)+(83*0.07)+(87*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "EC (78) and SK (83) are the gaps. EC lift via deeper annual report review. No single dominant path to 97 — needs broad lift across multiple axes.", "priority": "MEDIUM" }, { "id": "SPGI", "company": "S&P Global Inc", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 145.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 87, "band": "FULL", "basis": "K", "notes": "Provides annual EPS and revenue guidance with specific ranges. Post-IHS Markit integration, guidance accuracy returning to historical high levels. VERIFY: trailing 12 quarters.", "citations": []}, "EQ": {"score": 90, "band": "FULL", "basis": "K", "notes": "Data/analytics: high FCF/NI, low accruals. VERIFY.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC above WACC. IHS Markit integration synergies tracking. Consistent dividend growth. VERIFY.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Say-on-pay typically 93%+. VERIFY.", "citations": []}, "ST": {"score": 86, "band": "FULL", "basis": "K", "notes": "Divisions (Ratings, Market Intelligence, Commodity Insights, Mobility, Indices) consistently reported. Long-term targets disclosed. VERIFY.", "citations": []}, "EC": {"score": 77, "band": "FULL", "basis": "K", "notes": "IHS Markit integration delays acknowledged. Management candid on what's taking longer than expected. VERIFY trailing CEO letters.", "citations": []}, "SK": {"score": 83, "band": "FULL", "basis": "K", "notes": "~35,000 employees post-merger. Glassdoor approximately 4.0 (VERIFY).", "citations": []}, "DH": {"score": 90, "band": "FULL", "basis": "K", "notes": "S&P 500 index trademark and ratings duopoly (S&P + Moody's) = extraordinary DH. Network effects in benchmark index licensing are near-impossible to replicate. VERIFY: market share data.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD; +1 CEO acknowledgment of IHS Markit integration shortfalls", "composite": 88.5, "composite_calc": "(87*0.22)+(90*0.18)+(88*0.15)+(86*0.15)+(86*0.10)+(77*0.08)+(83*0.07)+(90*0.05)+2", "band": "WATCH_LIST", "priority": "MEDIUM-HIGH" }, { "id": "MCO", "company": "Moody's Corporation", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 82.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 87, "band": "FULL", "basis": "K", "notes": "Provides annual EPS and revenue guidance with specific ranges. Consistent delivery. VERIFY: trailing 12 quarters.", "citations": []}, "EQ": {"score": 90, "band": "FULL", "basis": "K", "notes": "Ratings agency: near-zero capital, high FCF/NI. VERIFY.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC: exceptional for a near-zero-capital business. Berkshire Hathaway's long-term ownership is itself a governance signal. Capital return disciplined. VERIFY.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Berkshire as large shareholder creates focused ownership oversight. Say-on-pay typically strong. VERIFY proxy.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "MIS (Moody's Investors Service) and MA (Moody's Analytics) segments consistent. Strategic targets for MA subscription growth. VERIFY.", "citations": []}, "EC": {"score": 78, "band": "FULL", "basis": "K", "notes": "CEO letters acknowledge when issuance volumes disappoint. Candid about macro environment driving revenue misses. VERIFY trailing letters.", "citations": []}, "SK": {"score": 83, "band": "FULL", "basis": "K", "notes": "~15,000 employees. Glassdoor: approximately 4.0 (VERIFY).", "citations": []}, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "Ratings duopoly with S&P — essentially a regulated quasi-oligopoly. Switching costs: bond issuers need Moody's rating for institutional investor access. Near-impossible to replicate. VERIFY: revenue from ongoing ratings (moat evidence).", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 CEO letters acknowledge issuance cycle headwinds with quantification", "composite": 88.5, "composite_calc": "(87*0.22)+(90*0.18)+(88*0.15)+(86*0.15)+(85*0.10)+(78*0.08)+(83*0.07)+(91*0.05)+2", "band": "WATCH_LIST", "priority": "MEDIUM-HIGH" }, { "id": "NVO", "company": "Novo Nordisk A/S", "exchange": "Nasdaq Copenhagen / NYSE (ADR)", "ticker_local": "NVO.CO", "gics_sector": "Health Care", "gics_sector_code": 35, "country": "DK", "market_cap_usd_b_approx": 380.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 88, "band": "FULL", "basis": "K", "notes": "Provides specific annual sales growth and operating profit guidance in DKK with stated ranges. Consistent delivery within ranges. GLP-1 supply constraints create upside guidance risk. FC-3: FULL (all three primary metrics guided with ranges). VERIFY: trailing 12 quarters from SEC 20-F and earnings releases.", "citations": []}, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Pharmaceutical company with very high FCF/NI. Low accruals. Earnings variability: low (GLP-1 dominates and demand far exceeds supply). Big-4 auditor. VERIFY.", "citations": []}, "CD": {"score": 89, "band": "FULL", "basis": "K", "notes": "ROIC: very high for pharma (GLP-1 pricing power). No major M&A complexity. Capital allocation: large capex build-out for manufacturing (Ozempic/Wegovy capacity), explicitly justified. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Danish governance: two-tier board. Novo Holdings (foundation) is controlling shareholder — GV-3 nuance (not dual class per se, but concentrated ownership). Foundation ownership considered by steward panel — VERIFY Danish corporate governance disclosure.", "citations": []}, "ST": {"score": 88, "band": "FULL", "basis": "K", "notes": "Manufacturing scale-up strategy explicitly disclosed with capacity milestones. Segment reporting: Diabetes and Obesity Care, Rare Disease — consistent. VERIFY investor day targets.", "citations": []}, "EC": {"score": 79, "band": "FULL", "basis": "K", "notes": "CEO letters acknowledge supply constraint impacts on patient access. Semaglutide supply shortages have been disclosed with corrective actions. EC-2: when guidance is missed due to supply, management explicitly states cause. VERIFY trailing annual reports.", "citations": []}, "SK": {"score": 85, "band": "FULL", "basis": "K", "notes": "~60,000 employees. Glassdoor: European pharma companies typically 4.0+ (VERIFY). Patient trust: GLP-1 therapies have transformed treatment — customer trust very high. No major product liability class actions (VERIFY). Foundation-owned structure also aligns longer-term vs short-term shareholder interests.", "citations": []}, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "GLP-1 dominance: Ozempic/Wegovy/Rybelsus platform. Manufacturing moat (plasma manufacturing expertise applied to peptides). Clinical trial data 15+ years of Victoza/semaglutide. Regulatory approvals across 50+ countries. Switching costs: physicians and patients are highly sticky once titrated on semaglutide. VERIFY: market share data.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD with independent assurance (Novo Nordisk publishes comprehensive sustainability accounting report); +1 foundation-driven sustainability commitments with quantified targets (SBTi)", "composite": 89.2, "composite_calc": "(88*0.22)+(91*0.18)+(89*0.15)+(86*0.15)+(88*0.10)+(79*0.08)+(85*0.07)+(91*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "GV (86) nuance: Novo Holdings controlling ownership needs careful steward analysis under GV-3. EC (79) needs deeper review — supply constraint acknowledgment is unusually candid for a pharma CEO. Strong candidate for composite lift after primary sourcing.", "priority": "MEDIUM-HIGH" }, { "id": "GGG", "company": "Graco Inc", "exchange": "NYSE", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 14.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 81, "band": "FULL", "basis": "P", "notes": "Graco provides annual financial outlook including sales growth and EPS ranges. ROIC 23-24% as of 2025 (from primary source). Guidance accuracy: consistent within stated ranges (VERIFY trailing 12 quarters). FC-3: PARTIAL-FULL depending on range width. No formal quarterly EPS guidance — annual only.", "citations": ["Graco 2025 results: https://www.stocktitan.net/sec-filings/GGG/8-k-graco-inc-reports-material-event-50c8823ad78f.html"]}, "EQ": {"score": 87, "band": "FULL", "basis": "K", "notes": "Fluid handling: high FCF/NI. Very low accruals (no inventory manipulation risk in niche industrial). VERIFY: 10-K FCF/NI.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "P", "notes": "ROIC 23-24% in 2025 (primary source confirms). No acquisitions of scale — effectively no M&A risk to CD-2 (scored at median per methodology). Dividend raised consistently. No debt excess. Capital return policy clean.", "citations": ["Graco ROIC: https://stockanalysis.com/stocks/ggg/statistics/"]}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent board. Say-on-pay: typically 90%+. VERIFY proxy.", "citations": []}, "ST": {"score": 83, "band": "FULL", "basis": "K", "notes": "End-market segment reporting consistent. Annual outlooks with clear assumptions. VERIFY investor day materials.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "CEO letters are professional but not extensively acknowledging of quantified mistakes. When volumes decline, management attributes externally (industrial cycle). EC-1 PARTIAL: limited evidence of specific quantified internal error acknowledgment. VERIFY trailing annual report letters.", "citations": []}, "SK": {"score": 84, "band": "FULL", "basis": "K", "notes": "~6,000 employees. Glassdoor: approximately 3.9-4.1 (VERIFY). Strong engineering culture. Customer loyalty: fluid handling is specification-driven — engineers specify Graco by name. VERIFY: Glassdoor current rating.", "citations": []}, "DH": {"score": 88, "band": "FULL", "basis": "K", "notes": "Intangible asset moat: Graco has 600+ patents in fluid handling. Specification moat: professional users (painting contractors, industrial finishers) are trained on Graco and won't switch. No debt. R&D investment consistent relative to revenue. VERIFY: patent count from 10-K.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY Graco sustainability disclosure scope)", "composite": 85.1, "composite_calc": "(81*0.22)+(87*0.18)+(88*0.15)+(85*0.15)+(83*0.10)+(74*0.08)+(84*0.07)+(88*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "EC (74 — PARTIAL, borderline) is the primary constraint. Axis floor rule: PARTIAL is OK for constituent band (floor is 40). But EC at 74 and FC at 81 create a composite ceiling. Need all other axes at ~97 average to hit 97 composite — not achievable. Graco is a strong watch-list candidate with genuine integrity culture; actual constituent eligibility depends on deeper EC sourcing and whether CEO letters contain more acknowledgment than estimated.", "priority": "MEDIUM" }, { "id": "IEX", "company": "IDEX Corporation", "exchange": "NYSE", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 16.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 72, "band": "PARTIAL", "basis": "P", "notes": "2025 guidance revised downward mid-year: original $8.10-$8.45 adj EPS revised to $7.85-$7.95 (down ~5-7% from midpoint). This is a material mid-year downward revision — FC-1 hit rate impacted. Pattern: 2025 was a challenged year with ~1% organic growth. FC-3: guidance is provided with specific ranges (FULL on specificity). FC-1: impaired by 2025 revision. VERIFY: full trailing 12-quarter record to assess whether 2025 is an outlier or a pattern.", "citations": [ "IDEX 2025 guidance revision: https://www.sec.gov/Archives/edgar/data/0000832101/000162828025046909/iex-20250930xex991.htm", "IDEX Q4 2024 results: https://investors.idexcorp.com/news-releases/news-release-details/idex-reports-fourth-quarter-and-full-year-2024-results" ] }, "EQ": {"score": 86, "band": "FULL", "basis": "K", "notes": "High-quality industrial: FCF/NI typically 0.90x+. Low accruals. VERIFY: 10-K FCF/NI.", "citations": []}, "CD": {"score": 87, "band": "FULL", "basis": "K", "notes": "ROIC historically high (~20%+). M&A: disciplined acquisitions of niche flow and measurement businesses. CD-3: consistent dividend raises. VERIFY: ROIC from most recent 10-K and M&A goodwill track record.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Segment reporting consistent (FMT, HST, FSDP). Long-term Pump Up the Volume strategy disclosed. VERIFY investor day materials.", "citations": []}, "EC": {"score": 76, "band": "FULL", "basis": "K", "notes": "When 2025 guidance was revised downward, did management explicitly acknowledge 'we guided X, achieved Y, here is why'? From available data, the downward revision was accompanied by explanation of market conditions. VERIFY: EC-2 specific language from Q3 2025 earnings transcript.", "citations": []}, "SK": {"score": 82, "band": "FULL", "basis": "K", "notes": "~10,000 employees across niche industrial businesses. Glassdoor estimated 3.9-4.0 (VERIFY).", "citations": []}, "DH": {"score": 86, "band": "FULL", "basis": "K", "notes": "Niche industrial moat: IDEX businesses dominate their sub-markets (fire & life safety, fluid metering). Switching costs for industrial specifications are high. R&D investment consistent. VERIFY: market share data from annual report.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 83.2, "composite_calc": "(72*0.22)+(86*0.18)+(87*0.15)+(85*0.15)+(85*0.10)+(76*0.08)+(82*0.07)+(86*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "FC (72 — PARTIAL) is the binding issue. The 2025 downward revision pushed FC into PARTIAL band. If trailing 12-quarter review shows 2025 was an outlier and prior periods scored well, FC might rise to 78-82 (FULL), lifting composite to ~85-86 (watch list). Constituent band requires substantial further improvement across all axes.", "priority": "MEDIUM — re-evaluate after 2026 guidance delivery" }, { "id": "ODFL", "company": "Old Dominion Freight Line Inc", "exchange": "NASDAQ", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 40.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 70, "band": "PARTIAL", "basis": "P", "notes": "ODFL does NOT provide formal annual EPS or revenue guidance with stated ranges. They provide quarterly outlook and commentary on market conditions. Operating ratio guidance: not formally provided (OR disclosed quarterly as a result, not a forecast). Q2 2026 guidance includes EPS estimate of $1.32 and revenue $1.44B — but this may be analyst consensus, not company guidance. OR deteriorated: Q1 2024 73.5% → Q1 2025 75.4% → Q1 2026 76.2%. FC-3: PARTIAL to MINIMAL (limited formal guidance). FC-1: cannot be scored without formal guidance to compare against. VERIFY: whether ODFL provides formal annual guidance in their filings.", "citations": [ "ODFL Q1 2026 8-K: https://www.sec.gov/Archives/edgar/data/0000878927/000119312526036791/odfl-ex99_1.htm", "ODFL Q1 2026 press release: https://ir.odfl.com/news-events/press-releases/detail/342/old-dominion-freight-line-reports-first-quarter-2026" ] }, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "Transportation company with high FCF/NI. Accruals low relative to sector. OR trend of deterioration reduces earnings quality signal — VERIFY accruals ratio trend.", "citations": []}, "CD": {"score": 87, "band": "FULL", "basis": "K", "notes": "ROIC: transportation company with real assets but high ROIC relative to sector. No M&A complexity. Capital return: buybacks and dividends consistent. VERIFY.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy.", "citations": []}, "ST": {"score": 82, "band": "FULL", "basis": "K", "notes": "Service center expansion plan explicitly disclosed with targets. VERIFY investor day materials.", "citations": []}, "EC": {"score": 80, "band": "FULL", "basis": "K", "notes": "Management is candid about freight cycle headwinds driving OR deterioration. EC-2: no guidance to miss (since no formal guidance), but OR deterioration is acknowledged with explanation in every earnings call. EC-3: no major project failures. VERIFY: trailing earnings call transcripts for candor quality.", "citations": []}, "SK": {"score": 86, "band": "FULL", "basis": "K", "notes": "Known as one of the best employers in LTL trucking. Low driver turnover (critical in freight). Glassdoor: approximately 4.0-4.2 (VERIFY). Customer satisfaction: ODFL is known for on-time delivery leadership in LTL. VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 87, "band": "FULL", "basis": "K", "notes": "Network density moat in LTL freight: 250+ service centers built over decades are near-impossible to replicate. ROIC above WACC sustained even in freight downturns. R&D: technology investment in tracking and routing.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 83.4, "composite_calc": "(70*0.22)+(88*0.18)+(87*0.15)+(86*0.15)+(82*0.10)+(80*0.08)+(86*0.07)+(87*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "FC (70 — PARTIAL) is the binding issue. No formal guidance = FC-1 cannot score well. If ODFL adopted formal annual EPS and OR guidance with stated ranges, FC could lift to 85-88, moving composite to ~87-89 (watch list). Organic improvement path: strong company structurally but FC constraint is real.", "priority": "MEDIUM" }, { "id": "FAST", "company": "Fastenal Company", "exchange": "NASDAQ", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 47.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 56, "band": "PARTIAL", "basis": "P", "notes": "CRITICAL NOTE: Fastenal does NOT provide formal annual EPS guidance or revenue guidance with stated ranges. They publish monthly net sales reports (unique operational transparency) but no forward-looking guidance ranges for EPS, revenue, or operating income. FC-1: MINIMAL — no material guidance to score against. FC-3: PARTIAL at best (capex guidance + some operational targets but not the three primary metrics). FC-4: some strategic targets (vending machines, branch counts) — FULL. Blended FC: the unique monthly transparency partially offsets the guidance gap, but the methodology specifically requires forward-looking guidance items for FC-1/FC-3. Net FC: 56 (PARTIAL). Q2 2025 beat analyst estimates ($0.29 vs $0.28 consensus) but analyst consensus ≠ company-issued guidance.", "citations": [ "Fastenal Q1 2026 earnings: https://investor.fastenal.com/news-releases/news-details/2026/Fastenal-Company-Reports-2026-First-Quarter-Earnings/default.aspx", "Fastenal Q2 2025 beat: https://www.ainvest.com/news/fastenal-2025-q2-earnings-surpasses-expectations-12-8-net-income-growth-2507/" ] }, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "Distributor model: FCF/NI very high. Low accruals (no manufacturing). Monthly sales reporting provides unusual earnings quality signal. VERIFY: 10-K FCF/NI.", "citations": []}, "CD": {"score": 89, "band": "FULL", "basis": "K", "notes": "ROIC: approximately 33-38%. No M&A — CD-2 neutral (scored at median). Dividend raised consistently. Zero debt. Capital return clean. VERIFY: 10-K ROIC.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Founder family influence declining. Say-on-pay typically strong. VERIFY proxy.", "citations": []}, "ST": {"score": 80, "band": "FULL", "basis": "K", "notes": "Consistent reporting. Long-term targets for vending/e-commerce mix disclosed. VERIFY investor day.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "CEO letters are operational and honest but not deeply error-acknowledging. EC-1 PARTIAL: no quantified mistake acknowledgment found in public review. VERIFY trailing 5 annual report letters.", "citations": []}, "SK": { "score": 62, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor rating: 3.5/5 (primary source). This is below the 4.0 threshold for SK-1 FULL. 65% of employees recommend the company to a friend. High turnover is a known challenge in distributor branch roles. VERIFY: current Glassdoor rating from direct source.", "citations": [ "Glassdoor Fastenal rating 3.5: search result from glassdoor.com/Reviews/Fastenal query" ] }, "DH": {"score": 85, "band": "FULL", "basis": "K", "notes": "Branch/vending density moat. 3,500+ branches. Vending machine installations (120,000+) create embedded customer relationships. Switching costs: vending replenishment contracts are multi-year. R&D: technology investment in digital ordering. VERIFY: vending count from most recent annual report.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 monthly sales reporting is the closest thing to a public prediction/transparency record in the Industrials sector (partial bonus credit — steward discretion)", "composite": 78.5, "composite_calc": "(56*0.22)+(88*0.18)+(89*0.15)+(85*0.15)+(80*0.10)+(74*0.08)+(62*0.07)+(85*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "FC (56 — PARTIAL) and SK (62 — PARTIAL) are the binding constraints. If Fastenal adopted formal annual guidance with stated EPS and revenue ranges (the unique monthly reporting proves they have the data), FC could move to 88-90. If Glassdoor improves to 4.0+, SK moves to FULL (~78+). These two changes could lift composite to 86-88 (watch list). Constituent band requires further systemic improvement. Note: Fastenal is one of the most operationally transparent companies globally — the constraint is purely the formal guidance format, not underlying management quality.", "priority": "MEDIUM — monitor for formal guidance adoption" }, { "id": "ROP", "company": "Roper Technologies Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 58.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 87, "band": "FULL", "basis": "K", "notes": "Provides annual EPS and revenue guidance with specific ranges. Consistent delivery. Post-industrial-divestitures, now pure software — guidance predictability improved. VERIFY trailing 12 quarters.", "citations": []}, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "Software-dominated portfolio: very high FCF/NI. Low accruals. VERIFY.", "citations": []}, "CD": {"score": 87, "band": "FULL", "basis": "K", "notes": "ROIC: strong for software acquirer. M&A track record: no major goodwill impairments. Track record of buying niche vertical software at fair prices and retaining management. VERIFY: goodwill impairment history from 10-K.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy.", "citations": []}, "ST": {"score": 86, "band": "FULL", "basis": "K", "notes": "Software vertical acquisition strategy explicitly stated. Annual free cash flow targets disclosed. VERIFY investor day.", "citations": []}, "EC": {"score": 77, "band": "FULL", "basis": "K", "notes": "When acquisitions underperform, management acknowledges the issue. Generally candid about organic growth rates vs acquisition contribution. VERIFY trailing CEO letters.", "citations": []}, "SK": {"score": 82, "band": "FULL", "basis": "K", "notes": "~17,000 employees across acquired software businesses. Glassdoor estimated 4.0 (VERIFY).", "citations": []}, "DH": {"score": 87, "band": "FULL", "basis": "K", "notes": "Niche vertical software moat: companies like Vertafore (insurance), Foundry (media), Deltek (government contracting) are mission-critical with very high switching costs. R&D reinvested in organic development within each vertical. VERIFY: average customer retention at acquired businesses.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 87.1, "composite_calc": "(87*0.22)+(88*0.18)+(87*0.15)+(85*0.15)+(86*0.10)+(77*0.08)+(82*0.07)+(87*0.05)+1", "band": "WATCH_LIST", "priority": "MEDIUM" }, { "id": "JKHY", "company": "Jack Henry and Associates Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 14.5, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 88, "band": "FULL", "basis": "P", "notes": "FY2025 GAAP EPS $6.24 vs $5.23 prior (+19.3%). FY2026 Q1: $1.68; Q2: $1.72 (+28.6% YoY); Q3: $1.71 (+12.2% YoY). YTD FY2026: $5.41 vs $4.49 prior (+20.4%). Strong earnings delivery. Company provides specific annual guidance for revenue and non-GAAP EPS — VERIFY: exact guidance ranges from FY2026 annual outlook statement and whether company-issued ranges were tight. Pattern of consistent mid-to-upper delivery within stated ranges. FC-3: FULL (EPS + revenue guided). FC-1: hit rate appears high — VERIFY exact quarterly record.", "citations": [ "JKHY Q3 FY2026 8-K: https://www.sec.gov/Archives/edgar/data/0000779152/000077915226000021/jkhy-20260331xex99pressrel.htm", "JKHY Q4 FY2025: https://ir.jackhenry.com/news-releases/news-release-details/jack-henry-associates-inc-reports-fourth-quarter-and-full-year-1", "JKHY FY2026 Q1: https://ir.jackhenry.com/news-releases/news-release-details/jack-henry-associates-inc-reports-first-quarter-2026" ] }, "EQ": {"score": 89, "band": "FULL", "basis": "K", "notes": "SaaS for community banks: FCF/NI ~0.92x. Low accruals (subscription revenue). Earnings stability: very consistent 8-15% EPS growth. Big-4 auditor. VERIFY: 10-K FCF/NI and accruals.", "citations": []}, "CD": {"score": 85, "band": "FULL", "basis": "K", "notes": "ROIC: approximately 15-20% for software (high customer retention drives returns). Dividend raised consistently. No major M&A. VERIFY: ROIC from 10-K.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy for say-on-pay vote.", "citations": []}, "ST": {"score": 86, "band": "FULL", "basis": "K", "notes": "Consistent reporting (Core, Payments, Complementary segments). Long-term technology migration targets (cloud-native platform Banno). VERIFY investor day.", "citations": []}, "EC": {"score": 78, "band": "FULL", "basis": "K", "notes": "CEO letters acknowledge customer transition timing challenges. When revenue ramp is slower than expected, management provides specific explanation. VERIFY trailing letters.", "citations": []}, "SK": {"score": 85, "band": "FULL", "basis": "K", "notes": "~7,000 employees. Known for strong employee culture in fintech. Glassdoor estimated 4.0-4.2 (VERIFY). Bank customer retention is extraordinary (~97%+) — SK-2 FULL. VERIFY: client retention from annual report.", "citations": []}, "DH": {"score": 86, "band": "FULL", "basis": "K", "notes": "Switching cost moat for community bank software is extremely high. Changing core banking systems is a multi-year project costing millions — banks only do it when forced. Average customer lifetime measured in decades. VERIFY: average customer tenure from annual report.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 CEO letter acknowledges customer migration timing shortfalls with specificity", "composite": 87.6, "composite_calc": "(88*0.22)+(89*0.18)+(85*0.15)+(86*0.15)+(86*0.10)+(78*0.08)+(85*0.07)+(86*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Solid watch-list candidate. No single dominant gap — needs broad lift across EC (78), CD (85), GV (86). If primary source verification lifts each 2-3 points, composite could approach 90-91. Constituent band still requires substantial improvement or bonus increase.", "priority": "MEDIUM" }, { "id": "DHR", "company": "Danaher Corporation", "exchange": "NYSE", "gics_sector": "Health Care", "gics_sector_code": 35, "country": "US", "market_cap_usd_b_approx": 195.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 92, "band": "FULL", "basis": "P", "notes": "One of the tightest guidance profiles in the founding pool. FY2025: initial guidance $7.70-$7.80 adj EPS (range = $0.10, ~1.3%). Delivered near top of range (~$7.78). FY2026: initial $8.35-$8.50 (range = $0.15, ~1.8%), raised to $8.35-$8.55 after Q1 2026 (30% bioprocessing orders surge). Pattern: very conservative initial range, raised on strength. FC-1: hit rate very high (VERIFY trailing 12 quarters). FC-3: FULL — adj EPS + revenue + operating margin all guided with explicit ranges. This is among the top 3 FC profiles in the entire founding pool.", "citations": [ "DHR 8-K Jan 2026 CEO comment: https://www.sec.gov/Archives/edgar/data/0000313616/000031361626000002/dhr-20260112xex991.htm", "DHR Q1 2026 results: https://www.prnewswire.com/news-releases/danaher-reports-first-quarter-2026-results-302747922.html", "DHR 8-K Jan 2025: https://www.sec.gov/Archives/edgar/data/0000313616/000031361625000002/dhr-20250113xex991.htm" ] }, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Life sciences + environmental instruments: FCF/NI ~1.0-1.1x. Very low accruals. High margins post-water quality/life sciences restructuring. Big-4 audit. VERIFY: 10-K FCF/NI trailing 3 years.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC ~20-25%. DBS (Danaher Business System) is a documented capital allocation framework — explicit operating system for capital deployment. M&A track record generally value-accretive (Pall, Cepheid, Cytiva). Post-Veralto spinoff capital structure rationalized. VERIFY: ROIC from 10-K.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Single class (post-Rales family restructuring). Majority independent board. Say-on-pay: typically strong. VERIFY: most recent proxy for board independence % and say-on-pay vote.", "citations": []}, "ST": {"score": 87, "band": "FULL", "basis": "K", "notes": "Biotechnology Tools + Environmental & Applied Solutions segments consistently reported. 3-year strategic targets provided at investor days. Post-Veralto spinoff strategy clearly articulated. VERIFY: investor day materials.", "citations": []}, "EC": {"score": 75, "band": "FULL", "basis": "K", "notes": "CEO Rainer Blair's communications are professional and operationally precise. When bioprocessing market compressed in 2023-2024, management was explicit about the cause (customer inventory destocking). No quantified internal error acknowledgment found in search results, but acknowledges market miss with operational specificity. EC-2 FULL (acknowledges cause of guidance miss when it occurs); EC-1 PARTIAL (no CEO letter explicitly states 'we guided X, missed Y because of Z our fault'). VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": {"score": 82, "band": "FULL", "basis": "K", "notes": "~65,000 employees. Life sciences employer. Glassdoor: approximately 4.0-4.1 (VERIFY). DBS culture creates operational discipline. Customer relationships: long-term capital equipment and service contracts. VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 88, "band": "FULL", "basis": "K", "notes": "Water quality testing (Hach) and life sciences tools (Cytiva, Beckman Coulter) markets. DBS moat: operational excellence is structural and hard to replicate. Regulatory approval moats in diagnostics. R&D investment consistent. VERIFY: market share data from annual report.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD with assurance (Danaher publishes detailed sustainability accounting); +1 DBS annual operating reviews explicitly compare actual vs plan (institutionalized EC analogue)", "composite": 89.7, "composite_calc": "(92*0.22)+(91*0.18)+(88*0.15)+(87*0.15)+(87*0.10)+(75*0.08)+(82*0.07)+(88*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Best FC in the founding pool. EC (75) is the binding constraint. If Rainer Blair's CEO letters contain more quantified error acknowledgment than search results reveal (VERIFY), EC could lift to 82-85, adding ~0.56-0.8 points. Even with perfect EC, composite peaks at ~92 with current bonus ceiling. Constituent band requires fundamental improvement in EC culture or bonus point expansion.", "priority": "HIGH — top FC score in pool" }, { "id": "MSCI", "company": "MSCI Inc", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 48.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 86, "band": "FULL", "basis": "P", "notes": "11th consecutive year of double-digit adjusted EPS growth in 2025: FY2025 adj EPS $17.28, up 13.7% from $15.20. Company provides annual expense and cash flow guidance with specific ranges. Q1 2026 adj EPS $4.55 (+13.8%). EPS beats analyst consensus each quarter. VERIFY: whether MSCI publishes explicit annual adj EPS guidance ranges (vs. expense-only guidance). If EPS guidance is provided with stated ranges, FC could lift to 90+. Pattern: 11 consecutive years of double-digit adj EPS growth = extreme delivery consistency (FC-4 FULL).", "citations": [ "MSCI FY2025 results: https://ir.msci.com/news-releases/news-release-details/msci-reports-financial-results-fourth-quarter-and-full-year-2025", "MSCI Q1 2026 results: https://ir.msci.com/news-releases/news-release-details/msci-reports-financial-results-first-quarter-2026", "MSCI 2026 proxy: https://www.stocktitan.net/sec-filings/MSCI/def-14a-msci-inc-definitive-proxy-statement-951cedf1563a.html" ] }, "EQ": {"score": 93, "band": "FULL", "basis": "K", "notes": "Index and analytics: FCF/NI ~1.0-1.1x. Very low accruals (subscription and index-licensing revenue). Earnings variability: very low. Big-4 audit (Deloitte). VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 92, "band": "FULL", "basis": "K", "notes": "ROIC ~40%+. Index licensing is capital-light. M&A: Burgiss, RCA acquisitions generally synergy-delivering. Capital return: 90%+ of CEO pay at-risk per proxy = documented alignment. Share buybacks systematic. VERIFY: ROIC from 10-K.", "citations": []}, "GV": {"score": 88, "band": "FULL", "basis": "P", "notes": "2026 proxy: 11 director nominees for election. 90%+ of CEO regular annual pay at risk through incentives tied to revenue and adjusted EPS. Say-on-pay vote result pending verification. Single-class shares. Majority independent board. VERIFY: most recent say-on-pay vote percentage from 8-K.", "citations": [ "MSCI 2026 proxy highlights: https://www.stocktitan.net/sec-filings/MSCI/def-14a-msci-inc-definitive-proxy-statement-951cedf1563a.html" ]}, "ST": {"score": 87, "band": "FULL", "basis": "K", "notes": "Recurring subscriptions vs. non-recurring consistently disclosed. Asset-Based Fees (ABF) run rate disclosed quarterly as leading indicator. Index + Analytics + ESG segment reporting consistent. VERIFY: investor day targets.", "citations": []}, "EC": {"score": 76, "band": "FULL", "basis": "K", "notes": "CEO Henry Fernandez's annual communications. Limited evidence of quantified error acknowledgment in available research. When ABF revenues disappointed (market cap decline periods), management attributed externally. VERIFY: trailing 5 annual reports for EC-1 scoring.", "citations": []}, "SK": {"score": 83, "band": "FULL", "basis": "K", "notes": "~5,500 employees. Financial data employer with professional workforce. Glassdoor: approximately 4.1-4.2 for index/data companies (VERIFY). Customer trust: institutional investors depend on MSCI indices for mandate benchmarking — SK-2 FULL. VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 95, "band": "FULL", "basis": "K", "notes": "MSCI benchmarks are embedded in institutional investment mandates globally (>$17T AUM benchmarked to MSCI indices). Switching costs: changing benchmark requires mandate restructuring, client notification, and transition cost. No viable competitor at institutional scale. This is one of the highest DH scores in the founding pool — comparable to Visa's network moat.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD disclosure with independent assurance; +1 11 consecutive years of double-digit adj EPS growth = implicit prediction track record (FC-bonus adjacent)", "composite": 90.0, "composite_calc": "(86*0.22)+(93*0.18)+(92*0.15)+(88*0.15)+(87*0.10)+(76*0.08)+(83*0.07)+(95*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Strongest DH (95) after Visa in the pool. FC (86) could lift to 90+ if MSCI provides explicit annual EPS guidance ranges (vs. expense guidance only — VERIFY). EC (76) needs deeper CEO letter review. If FC lifts to 90 (+0.88) and EC lifts to 85 (+0.72), composite approaches 91.6. Constituent band remains a stretch — the 97 threshold requires near-perfect all-axis scoring.", "priority": "HIGH" }, { "id": "ADBE", "company": "Adobe Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 140.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 86, "band": "FULL", "basis": "P", "notes": "FY2025: revenue guidance $23.50-$23.60B, non-GAAP EPS $20.50-$20.70. Actual FY2025: non-GAAP EPS $20.94 (beat high end of range). FY2026: non-GAAP EPS guidance $23.30-$23.50 (range = $0.20, ~0.86% of midpoint — EXTREMELY TIGHT). Consistent delivery within stated ranges. Quarterly guidance also provided and delivered. FC-3: FULL. FC-1: hit rate high. Note: CEO Narayen announced succession in March 2026 (transition ongoing). VERIFY: trailing 12-quarter guidance accuracy.", "citations": [ "Adobe FY2025 results 8-K: https://www.sec.gov/Archives/edgar/data/0000796343/000079634325000064/adbeex991q225.htm", "Adobe Q2 2026 8-K: https://www.sec.gov/Archives/edgar/data/0000796343/000079634326000109/adbeex991q226.htm", "Narayen CEO transition: https://news.adobe.com/news/2026/03/leadership-update" ] }, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Creative SaaS: FCF/NI ~1.0-1.1x. Very low accruals. Subscription revenue growth consistent. VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 92, "band": "FULL", "basis": "K", "notes": "ROIC ~50%+. Post-Figma withdrawal, no major M&A. Capital return: large buyback program. Figma termination fee ($1B paid) = single large CD impairment, but recoverable. VERIFY: ROIC from 10-K and Figma-adjusted metrics.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. CEO succession underway (Narayen transition). Say-on-pay: typically strong. VERIFY: most recent proxy.", "citations": []}, "ST": {"score": 87, "band": "FULL", "basis": "K", "notes": "Digital Media + Digital Experience segments consistently reported. AI strategy (Firefly) disclosed with targets. Platform revenue targets tracked. VERIFY: investor day materials.", "citations": []}, "EC": { "score": 78, "band": "FULL", "basis": "P", "notes": "Figma withdrawal (Dec 2023): paid $1B reverse termination fee. This is a documented, quantified strategic mistake. CEO Narayen's 2023 annual letter acknowledged the regulatory environment 'created challenges we didn't anticipate' — EC-3 (strategy failure with public acknowledgment). This is above-average EC for a mega-cap. Systematic guidance beats (EPS above high end of range consistently) create a minor EC-2 concern (systematic sandbagging = overstated future guidance credibility). VERIFY: trailing 5 annual letters for EC-1/EC-3 scoring.", "citations": [ "Figma termination: https://news.adobe.com/news/news-details/2023/adobe-and-figma-mutually-agree-to-terminate-merger-agreement", "Figma cost to Adobe: https://finance.yahoo.com/news/adobe-failed-acquisition-figma-cost-151035766.html" ] }, "SK": {"score": 84, "band": "FULL", "basis": "K", "notes": "~30,000 employees. Silicon Valley employer. Glassdoor: approximately 4.0-4.2 (Narayen rated top CEO on Glassdoor). VERIFY: current Glassdoor rating. Customer trust: Creative Cloud is mission-critical for creative professionals.", "citations": []}, "DH": {"score": 92, "band": "FULL", "basis": "K", "notes": "Creative software moat: Photoshop/Illustrator/Premiere ecosystem has 30+ years of workflow embedding. Switching costs for professional creatives are very high (retraining, file format lock-in). AI (Firefly) adds new lock-in layer. VERIFY: creative professional customer retention.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD with independent assurance; +1 Figma withdrawal acknowledged in CEO communications as quantified strategic error ($1B fee disclosed) = EC-3 bonus qualifying", "composite": 89.6, "composite_calc": "(86*0.22)+(91*0.18)+(92*0.15)+(87*0.15)+(87*0.10)+(78*0.08)+(84*0.07)+(92*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Strong across most axes. EC (78) has room to lift if Figma acknowledgment is scored as EC-3 full-credit. FC guidance ranges are extremely tight (FY2026 non-GAAP EPS range = 0.86% of midpoint). Primary source verification could lift FC to 90+, composite to ~90.3. Constituent threshold still 6.7 points away.", "priority": "HIGH" }, { "id": "NOW", "company": "ServiceNow Inc", "exchange": "NYSE", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 230.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 85, "band": "FULL", "basis": "P", "notes": "cRPO guidance: each quarter provides explicit next-quarter cRPO target in absolute $ with stated growth rate. Q1 2026 cRPO guidance delivered: $12.64B, 22.5% YoY. Subscription revenue guidance quarterly with specific $ amounts (Q1 2026 actual $3,671M, +22%). Company also provides annual subscription revenue growth guidance. Consistency: every quarter in the last 12 has met or beaten cRPO guidance. FC-3 PARTIAL for EPS (primary guidance metric is cRPO not EPS); FC-1 FULL for cRPO guidance. VERIFY: whether annual GAAP/non-GAAP EPS guidance with ranges is provided.", "citations": [ "NOW Q4 2025 8-K: https://www.sec.gov/Archives/edgar/data/0001373715/000137371526000005/erq4fy25.htm", "NOW Q1 2026 8-K: https://www.sec.gov/Archives/edgar/data/0001373715/000137371526000054/erq1fy26.htm", "NOW FY2025 results: https://investor.servicenow.com/news/news-details/2026/ServiceNow-Reports-Fourth-Quarter-and-Full-Year-2025-Financial-Results-Board-of-Directors-Authorizes-Additional-5B-for-Share-Repurchase-Program/default.aspx" ] }, "EQ": {"score": 92, "band": "FULL", "basis": "K", "notes": "Enterprise SaaS: FCF/NI >1.0x. Deferred revenue dynamics create conservative GAAP NI vs. economic FCF. Very low accruals. VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 89, "band": "FULL", "basis": "K", "notes": "ROIC ~25-35%. No major M&A. Capital return: $5B additional buyback authorized in 2026. VERIFY: ROIC from 10-K.", "citations": []}, "GV": {"score": 88, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. CEO Bill McDermott. Say-on-pay: typically strong. VERIFY: most recent proxy vote.", "citations": []}, "ST": {"score": 89, "band": "FULL", "basis": "P", "notes": "Long-range revenue target: >$10B run rate by 2024 was publicly committed and achieved ahead of schedule. Now targeting $15B+ run rate. AI workflow automation strategy with quantified targets. This is one of the strongest ST profiles (public multi-year commitment, achieved early). VERIFY: investor day targets from 2025 analyst day.", "citations": [ "NOW 2025 ARS: https://www.sec.gov/Archives/edgar/data/1373715/000137371526000041/now2025ars.pdf" ]}, "EC": {"score": 72, "band": "PARTIAL", "basis": "K", "notes": "CEO McDermott's communications are primarily growth-narrative and promotional. No evidence of CEO letter acknowledging quantified strategic mistakes. EC-1 PARTIAL: limited error acknowledgment. EC-2: when guidance is met/beaten, management provides context (no miss to acknowledge). The EC-2 boundary case: when cRPO guidance methodology changed (hosted vs self-hosted mix shift), management disclosed the headwind clearly — partial EC credit. VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": {"score": 86, "band": "FULL", "basis": "K", "notes": "~25,000 employees. Enterprise software employer. Glassdoor: approximately 4.2-4.4 for ServiceNow (VERIFY). Customer trust: mission-critical IT workflow platform — extremely high retention. VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "Enterprise workflow automation moat. Mission-critical ITSM/ITOM/HR/CSM platform. Once deployed, ServiceNow is embedded in every operational workflow — switching requires multi-year transformation. R&D: massive AI investment. VERIFY: average customer tenure/NRR.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD; +1 >$10B revenue run rate publicly committed and achieved (FC-adjacent structural transparency signal)", "composite": 89.1, "composite_calc": "(85*0.22)+(92*0.18)+(89*0.15)+(88*0.15)+(89*0.10)+(72*0.08)+(86*0.07)+(91*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "EC (72 — PARTIAL boundary) is the primary constraint. McDermott's CEO communications are value-oriented but not error-acknowledging. If primary source verification reveals more candor in annual letters, EC could lift to 78+. Combined with potential FC lift (VERIFY annual EPS guidance format), composite could approach 91-92.", "priority": "HIGH" }, { "id": "MTD", "company": "Mettler-Toledo International Inc", "exchange": "NYSE", "gics_sector": "Health Care", "gics_sector_code": 35, "country": "US", "market_cap_usd_b_approx": 18.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 90, "band": "FULL", "basis": "P", "notes": "Exceptional: one of the tightest guidance ranges in the founding pool. FY2025: initial guidance $45.35-$46.00 adj EPS (range = $0.65, ~1.4%). Raised to $46.05-$46.70 at Q4 2025, delivered near top. FY2026: initial guidance $46.05-$46.70, Q1 2026 guidance slightly cautious (below analyst estimates = conservative initial quarter guide). Pattern: tight annual ranges, consistently raised on strength. Acknowledged FY Q4 2023 miss: 'Sales and Adjusted EPS for the fourth quarter were below previously-issued guidance due to unexpected shipping delays.' FC-3: FULL. FC-1: near-maximum (VERIFY trailing 12 quarters — one miss in 2023 acknowledged).", "citations": [ "MTD Q4 2025 8-K: https://www.sec.gov/Archives/edgar/data/0001037646/000103764626000008/ex-991mtd8xkq42025.htm", "MTD Q1 2026 8-K: https://www.sec.gov/Archives/edgar/data/0001037646/000103764626000019/ex-991mtd8xkq12026.htm", "Q4 2025 results: https://investor.mt.com/news/news-details/2025/Mettler-Toledo-International-Inc.-Reports-Fourth-Quarter-2024-Results/default.aspx" ] }, "EQ": {"score": 91, "band": "FULL", "basis": "P", "notes": "FCF from operations: $955.8M in 2025 on NI ~$875M → FCF/NI ~1.09x. Very high FCF conversion. ROIC 31-40% (multiple sources). Low accruals — precision instrument manufacturer. VERIFY: accruals ratio from 10-K.", "citations": [ "MTD 10-K FY2025: https://www.sec.gov/Archives/edgar/data/0001037646/000103764626000011/mtd-20251231.htm", "MTD ROIC: https://www.stockintent.com/app/data-browser/MTD/roic" ]}, "CD": {"score": 90, "band": "FULL", "basis": "P", "notes": "ROIC 31-40%. No M&A — Mettler-Toledo grows organically almost entirely (CD-2 scored at median per methodology). Dividend: not paid (returns via buybacks). Buyback program well-documented. Zero debt net. VERIFY: capital return framework from annual report.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Swiss-founded but US-listed governance. Say-on-pay: needs verification. CEO compensation: Patrick Kaltenbach salary per AFL-CIO PayWatch filed. VERIFY: most recent proxy for say-on-pay vote.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Consistent segment reporting (Lab, Industrial, Food Retail). Long-term market penetration targets. SPINNAKER growth program targets. VERIFY: investor day targets.", "citations": []}, "EC": { "score": 81, "band": "FULL", "basis": "P", "notes": "CEO acknowledged Q4 2023 guidance miss publicly: 'Sales and Adjusted EPS for the fourth quarter were below previously-issued guidance due to unexpected shipping delays with a new external European logistics service provider.' This is EC-2 FULL: when guidance was missed, management explicitly stated cause with specificity. Above-average for industrial company. VERIFY: trailing 5 annual report CEO/chairman letters for EC-1 scoring.", "citations": [ "MTD Q4 2023 acknowledgment: SEC 8-K Q4 2024 earnings (referencing Q4 2023 miss) — https://www.sec.gov/Archives/edgar/data/0001037646/000103764624000005/ex-991mtd8xkq42023.htm" ] }, "SK": { "score": 63, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor rating: 3.6/5 based on 1,195 reviews. This is below the 4.0 SK-1 FULL threshold. Compensation rated 3.2/5 — below-median for technology-adjacent companies. This is the primary constraint on Mettler-Toledo's composite. VERIFY: current Glassdoor overall rating and 'recommend to friend' percentage.", "citations": [ "MTD Glassdoor: https://www.glassdoor.com/Reviews/Mettler-Toledo-Reviews-E7144.htm" ] }, "DH": {"score": 88, "band": "FULL", "basis": "K", "notes": "Precision instruments: specification moat (scientists and engineers spec Mettler-Toledo by name), service contracts, regulatory calibration requirements create lock-in. No debt, extensive IP. VERIFY: market share from annual report.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD sustainability disclosure; +1 CEO explicitly acknowledged Q4 2023 guidance miss with identified root cause (EC-bonus qualifying under EC-2 standard)", "composite": 87.8, "composite_calc": "(90*0.22)+(91*0.18)+(90*0.15)+(85*0.15)+(85*0.10)+(81*0.08)+(63*0.07)+(88*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Best-in-class FC (90) and EQ (91). SK (63 — PARTIAL) is the binding constraint from Glassdoor 3.6. If employee satisfaction improves to 4.0+ (structural improvement, not gaming), SK moves to FULL (~78+) and composite lifts ~1.05 points. Even with SK fully resolved, composite peaks ~91-92. Constituent band requires sustained improvement across all axes.", "priority": "HIGH — top FC+EQ profile; SK is the single largest gap in an otherwise exceptional scorecard" }, { "id": "TYL", "company": "Tyler Technologies Inc", "exchange": "NYSE", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 24.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 87, "band": "FULL", "basis": "P", "notes": "Provides specific annual non-GAAP diluted EPS guidance with narrow ranges. FY2026: initial non-GAAP EPS $12.40-$12.65 (range = $0.25, ~2.0%); updated after Q1 2026 to $12.50-$12.75. FY2025: non-GAAP EPS delivery; GAAP EPS $7.20, up 20%. Consistent delivery. Q1 2026 guidance met or exceeded. FC-3: FULL. VERIFY: trailing 12-quarter guidance vs. actual record from 8-K filings.", "citations": [ "TYL Q1 2026 8-K: https://www.sec.gov/Archives/edgar/data/0000860731/000086073126000031/a991earningsrelease-3312026.htm", "TYL FY2025 results: https://www.stocktitan.net/sec-filings/TYL/8-k-tyler-technologies-inc-reports-material-event-7ed25664ed0e.html" ] }, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "Government SaaS: high FCF/NI, low accruals. Subscription transition well advanced. VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 82, "band": "FULL", "basis": "K", "notes": "ROIC ~15-20%. SLG acquisition ($2.3B, 2021) integration ongoing — CD-2 risk noted but no impairment reported. Capital return: primarily reinvestment. VERIFY: ROIC from 10-K and SLG integration status.", "citations": []}, "GV": { "score": 93, "band": "FULL", "basis": "P", "notes": "Say-on-pay 2026: 36,090,178 votes FOR / 1,006,195 AGAINST = 97.3% approval. This is one of the highest say-on-pay votes in the founding pool. Single class. Majority independent. Board chair transition announced 2026. CEO Lynn Moore. Annual meeting passed all items.", "citations": [ "TYL 2026 Annual Meeting 8-K: https://www.stocktitan.net/sec-filings/TYL/8-k-tyler-technologies-inc-reports-material-event-7824d009ea22.html", "TYL 2026 proxy: https://www.stocktitan.net/sec-filings/TYL/def-14a-tyler-technologies-inc-definitive-proxy-statement-bc457d32f9e1.html" ] }, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "2026 Investor Day held; long-term targets published. Consistent segment reporting (Enterprise Software, Platform Technologies). VERIFY: investor day quantified targets from 2026 event.", "citations": []}, "EC": {"score": 72, "band": "PARTIAL", "basis": "K", "notes": "CEO Lynn Moore's communications are professional and growth-focused. No specific error acknowledgment found in available research. EC-1 PARTIAL. EC-2: when guidance is met/beaten, no miss to acknowledge. VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": { "score": 64, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor rating: 3.7/5 based on 1,431 reviews. 70% recommend to friend. Work-life balance 3.9/5. Compensation 3.3/5. Career opportunities 3.4/5. Below 4.0 SK-1 threshold. Government technology employer — lower compensation vs. commercial tech is a structural factor. VERIFY: current Glassdoor overall rating.", "citations": [ "TYL Glassdoor: https://www.glassdoor.com/Reviews/Tyler-Technologies-Reviews-E682.htm" ] }, "DH": {"score": 88, "band": "FULL", "basis": "K", "notes": "Government software monopoly in many municipal categories: Tyler's ERP, property appraisal, courts, and public safety software serves 47,000+ government entities. Switching costs: government technology transitions are multi-year projects requiring legislative approval, budget cycles, and staff retraining. VERIFY: client count and average tenure.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 97.3% say-on-pay vote (exceptional governance signal — top-decile for founding pool)", "composite": 86.4, "composite_calc": "(87*0.22)+(88*0.18)+(82*0.15)+(93*0.15)+(85*0.10)+(72*0.08)+(64*0.07)+(88*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "GV (93) is the strongest governance score in the founding pool — 97.3% say-on-pay is exceptional. SK (64 — PARTIAL) from Glassdoor 3.7 is the drag. If SK improves to 4.0+ Glassdoor, SK moves to FULL (~78), adding ~0.98 points. EC (72) is also a constraint. Combined with SLG integration completing (CD lift), composite could approach 88-89.", "priority": "MEDIUM-HIGH — exceptional governance but SK constraint" }, { "id": "FDS", "company": "FactSet Research Systems Inc", "exchange": "NASDAQ", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 18.5, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 90, "band": "FULL", "basis": "P", "notes": "Exceptionally tight guidance — the revenue range is the narrowest in the founding pool. FY2026: revenue $2,450-$2,470M (range = $20M, ~0.8% of midpoint). Adj EPS $17.25-$17.75 (range = $0.50, ~2.9%). Organic ASV growth $130-$160M (~6.0-7.4%). Q2 2026: revenue up 7%, guidance raised. ROIC 16.66% (top 10% of sector). FC-3: FULL. FC-1: VERIFY hit rate from trailing 8-K filings.", "citations": [ "FDS Q4 FY2025 8-K: https://www.sec.gov/Archives/edgar/data/0001013237/000101323725000084/fdsq42025earningsrelease.htm", "FDS Q2 2026 results: https://www.stocktitan.net/sec-filings/FDS/8-k-factset-research-systems-inc-reports-material-event-8344190bc5c2.html", "FDS ROIC: https://www.gurufocus.com/term/ROIC/FDS/ROIC-/FactSet-Research-Systems-Inc" ] }, "EQ": {"score": 87, "band": "FULL", "basis": "K", "notes": "Financial data: high FCF/NI, low accruals. ROIC 16.66% (relatively lower than peers — service-business vs. network business). VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 84, "band": "FULL", "basis": "K", "notes": "ROIC 16.66% (solid but not exceptional vs. Visa/MA/MSCI). Dividend raised consistently. M&A: Cogito, BISAM acquisitions — generally integration-positive. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Say-on-pay: typically strong. VERIFY: most recent proxy.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Three-segment reporting (Research, Analytics, CTS) consistent. Medium-term ASV growth targets disclosed. VERIFY: investor day.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "CEO Phil Snow's communications professional. No specific error acknowledgment found. EC-1 PARTIAL. VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": {"score": 81, "band": "FULL", "basis": "K", "notes": "~12,000 employees. Financial data company. Glassdoor: approximately 3.9-4.1 (VERIFY). Client retention: very high (financial workflow switching costs). VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 85, "band": "FULL", "basis": "K", "notes": "Financial data moat: embedded workflows at buy-side and sell-side firms. Switching costs: changing financial data platforms requires retraining, integration work, and data validation. VERIFY: NRR from annual report.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 narrowest revenue guidance range in founding pool (0.8% of midpoint = structural commitment signal)", "composite": 87.2, "composite_calc": "(90*0.22)+(87*0.18)+(84*0.15)+(85*0.15)+(85*0.10)+(74*0.08)+(81*0.07)+(85*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Strong FC (90) from extremely tight revenue guidance. EC (74 — borderline PARTIAL) is the primary gap. CD (84) and GV (85) also constrain composite. Structural path to constituent band requires EC lift via deeper letter review AND CD/GV verification lifting scores by 5-7 points each.", "priority": "MEDIUM" }, { "id": "REL", "company": "RELX PLC", "exchange": "London Stock Exchange / Euronext Amsterdam", "ticker_local": "REL.L", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "GB", "market_cap_usd_b_approx": 70.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 79, "band": "FULL", "basis": "P", "notes": "Qualitative guidance only: '2026 continued strong underlying revenue growth with underlying adjusted operating profit growth exceeding underlying revenue growth, and strong growth in adjusted EPS on constant currency basis.' FY2025 actual: revenue £9,590M +7% underlying, adj EPS +10% constant currency, FCF conversion 99%. Like Wolters Kluwer, RELX provides qualitative guidance bands ('strong growth') rather than explicit numeric EPS ranges. FC-3 PARTIAL (no explicit numeric EPS range). FC-1: difficult to score without formal guidance targets. FC-4: long-term targets tracked in annual report against prior stated goals. Score reflects FULL delivery record but PARTIAL specificity.", "citations": [ "RELX 2025 full-year results: https://www.relx.com/~/media/Files/R/RELX-Group/documents/press-releases/2026/results-2025-pressrelease.pdf", "RELX 2025 Annual Report: https://www.relx.com/~/media/Files/R/RELX-Group/documents/reports/annual-reports/relx-2025-annual-report.pdf" ] }, "EQ": {"score": 91, "band": "FULL", "basis": "P", "notes": "Adjusted cash flow conversion 99% (primary source, 2025 annual results). Professional information: very high FCF/NI. Low accruals. RELX consistently delivers exceptional FCF conversion. VERIFY: net debt and accruals ratio from annual report.", "citations": [ "RELX FCF conversion 99%: https://www.relx.com/~/media/Files/R/RELX-Group/documents/press-releases/2026/results-2025-pressrelease.pdf" ]}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC: exceptional for information services. Net debt/EBITDA 2.0x (moderate, investment-grade). Operating margin improving consistently. M&A: bolt-on acquisitions in legal and risk segments, generally integration-positive. Dividend raised consistently. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "UK corporate governance: board majority independent. Dual UK/Dutch listing with consistent governance standards. UK AGM: advisory vote on remuneration report. VERIFY: most recent remuneration report advisory vote %. CEO Erik Engstrom compensation disclosure.", "citations": []}, "ST": {"score": 89, "band": "FULL", "basis": "K", "notes": "Four segments (Scientific/Technical/Medical, Risk, Legal, Exhibitions) consistently reported without restructuring. Long-term targets for each segment disclosed. Annual report includes explicit prior-year target tracking — similar to Wolters Kluwer (ST structural strength). VERIFY: annual report target-vs-actual format.", "citations": []}, "EC": {"score": 78, "band": "FULL", "basis": "K", "notes": "CEO Engstrom's communications are professional and operationally precise. Annual report's segment performance discussion includes explicit acknowledgment when targets are not met. EC-2 FULL (acknowledges segment underperformance with specificity). EC-1: limited evidence of first-person quantified mistake acknowledgment. VERIFY: trailing 5 annual reports.", "citations": []}, "SK": {"score": 82, "band": "FULL", "basis": "K", "notes": "~35,000 employees globally. Professional information employer. Glassdoor: limited US data for UK-listed company (VERIFY). Employee engagement survey data in annual report likely available. Customer loyalty: very high in all segments. VERIFY: employee engagement from annual report.", "citations": []}, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "Academic/legal/risk data moat: ScienceDirect, LexisNexis, Elsevier are embedded in academic and professional workflows globally. Switching costs: changing from LexisNexis in legal research or ScienceDirect in academic libraries is an institutional decision requiring years. R&D: AI-augmented data tools. VERIFY: NRR from annual report.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD with independent assurance (UK Mandatory Climate Disclosure); +1 annual report segment target-vs-actual tracking qualifies as institutional EC-disclosure mechanism", "composite": 87.4, "composite_calc": "(79*0.22)+(91*0.18)+(88*0.15)+(87*0.15)+(89*0.10)+(78*0.08)+(82*0.07)+(91*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "FC (79) from qualitative guidance is the binding constraint. If RELX adopts numeric EPS ranges (unlikely given current approach), FC could lift to 88+, adding ~2.0 points. Otherwise, path is limited by the qualitative guidance structure. Strong DH (91) and EQ (91) are assets. Structural peer: Wolters Kluwer faces the same FC constraint.", "priority": "MEDIUM" }, { "id": "ACN", "company": "Accenture PLC", "exchange": "NYSE", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "IE", "market_cap_usd_b_approx": 195.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 86, "band": "FULL", "basis": "P", "notes": "FY2026 adj EPS guidance: $13.52-$13.90 (range = $0.38, ~2.8%). FY2025 actual: adj EPS $12.15, exceeded consensus estimates by ~3.4%. Revenue and FCF also exceeded guidance. Quarterly guidance updated each earnings call. FC-3: FULL. FC-1: appears to have high hit rate (VERIFY trailing 12 quarters).", "citations": [ "ACN Q4 FY2025 8-K: https://www.sec.gov/Archives/edgar/data/0001467373/000146737325000213/q4fy25earnings8-kexhibit.htm", "ACN Q3 FY2026 8-K: https://www.sec.gov/Archives/edgar/data/0001467373/000146737326000031/q3fy26earnings8-kexhibit.htm" ] }, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "Consulting: FCF/NI ~0.90-1.00x. Low accruals. Earnings variability: low for a consulting firm. VERIFY: FCF/NI from 20-F.", "citations": []}, "CD": {"score": 84, "band": "FULL", "basis": "K", "notes": "ROIC ~18-22%. Capital return: systematic buybacks, consistent dividend. M&A: technology acquisitions generally integration-positive. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Irish domicile. Single class. Majority independent board. Say-on-pay: typically strong. VERIFY: most recent proxy.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Five segments (Communications, Financial Services, Health, Products, Resources) consistently reported. Long-term targets for AI-driven revenue. VERIFY: investor day quantified targets.", "citations": []}, "EC": {"score": 76, "band": "FULL", "basis": "K", "notes": "CEO Julie Sweet's communications are strategic and growth-oriented. When consulting market slowed (FY2024), management acknowledged the demand compression with specificity. EC-2 FULL (acknowledges miss cause). EC-1 PARTIAL. VERIFY: trailing 5 annual report CEO letters.", "citations": []}, "SK": {"score": 81, "band": "FULL", "basis": "K", "notes": "~780,000 employees. Large consulting employer. Glassdoor: approximately 3.9-4.1 for Accenture (VERIFY — large global workforce with varied ratings by region). VERIFY: current Glassdoor overall rating.", "citations": []}, "DH": {"score": 82, "band": "FULL", "basis": "K", "notes": "Professional services moat: client relationships, embedded technology implementations, proprietary IP. Switching costs moderate (consulting clients can switch, but transition cost is real). VERIFY: average client tenure.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD with assurance; +1 Julie Sweet public AI transformation framework (structural transparency about portfolio risk)", "composite": 86.6, "composite_calc": "(86*0.22)+(88*0.18)+(84*0.15)+(86*0.15)+(85*0.10)+(76*0.08)+(81*0.07)+(82*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "No single dominant gap. EC (76), CD (84), DH (82) all constrain composite. Broad lift of 3-5 points across multiple axes needed. Without a structural change in EC culture or DH strengthening, composite ceiling is approximately 89-90.", "priority": "MEDIUM" }, { "id": "VRSK", "company": "Verisk Analytics Inc", "exchange": "NASDAQ", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 40.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 86, "band": "FULL", "basis": "P", "notes": "FY2026: adj EPS $7.45-$7.75 (range = $0.30, ~4.0%); revenue $3,190-$3,240M (range = $50M, ~1.6%). Medium-term targets: OCC 6-8%, adj EBITDA 7-10%, double-digit adj EPS. FC-3: FULL. Medium-term targets tracked in annual report. VERIFY: trailing 12-quarter hit rate.", "citations": [ "VRSK 2025 Q4 8-K: https://www.sec.gov/Archives/edgar/data/0001442145/000143774925032072/ex_856088.htm", "VRSK 2026 proxy: https://www.stocktitan.net/sec-filings/VRSK/def-14a-verisk-analytics-inc-definitive-proxy-statement-f6886a89139b.html" ] }, "EQ": {"score": 87, "band": "FULL", "basis": "K", "notes": "Data analytics: FCF/NI ~0.85-0.95x. VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 85, "band": "FULL", "basis": "K", "notes": "ROIC ~20%+. Divestitures (Verisk Financial, Wood Mackenzie) have streamlined portfolio. Capital return ≥75% of FCF committed explicitly. VERIFY: ROIC from 10-K.", "citations": []}, "GV": { "score": 90, "band": "FULL", "basis": "P", "notes": "Say-on-pay 2026: 106,704,722 FOR / 4,772,523 AGAINST = 95.7% approval. Strong governance signal. Single class. Majority independent. Shareholders approved all proxy items. Above-median say-on-pay vs. founding pool.", "citations": [ "VRSK 2026 Annual Meeting: https://www.stocktitan.net/sec-filings/VRSK/8-k-verisk-analytics-inc-reports-material-event-69f572abf5aa.html" ] }, "ST": {"score": 88, "band": "FULL", "basis": "K", "notes": "Explicit medium-term financial targets disclosed with annual progress tracking. Consistent Insurance segment reporting. VERIFY: annual report for target-vs-actual format.", "citations": []}, "EC": {"score": 75, "band": "FULL", "basis": "K", "notes": "CEO Lee Shavel's communications acknowledge 'navigating growth amid challenges' in Q4 2025. Some candor on headwinds. VERIFY: trailing CEO letters for EC-1 quantified acknowledgment.", "citations": []}, "SK": { "score": 73, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor: 3.8/5 based on 1,502 reviews. 80% recommend to friend. Below the 4.0 SK-1 threshold, but 80% recommend is a strong signal. Compensation rated 3.4/5. Work-life balance 4.2/5. The 3.8 overall puts this in PARTIAL band per methodology, but closer to FULL than most PARTIAL companies.", "citations": [ "VRSK Glassdoor: https://www.glassdoor.com/Reviews/Verisk-Reviews-E140233.htm" ] }, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "ISO insurance forms and claims databases are the foundational layer of US property-casualty insurance underwriting. Verisk data is referenced in virtually every US P&C insurance policy. Switching costs: impossible — regulators, courts, and insurers all reference ISO forms. This is a quasi-regulated monopoly.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD; +1 95.7% say-on-pay vote = strong governance execution signal", "composite": 87.3, "composite_calc": "(86*0.22)+(87*0.18)+(85*0.15)+(90*0.15)+(88*0.10)+(75*0.08)+(73*0.07)+(91*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "Strong GV (90) from 95.7% say-on-pay. SK (73 — PARTIAL, but 80% recommend suggests near-threshold). If Glassdoor reaches 4.0, SK moves to FULL (~78), adding ~0.35 points. EC (75) needs deeper letter review. Structural ceiling without EC improvement: approximately 88-89.", "priority": "MEDIUM" }, { "id": "FICO", "company": "Fair Isaac Corporation", "exchange": "NYSE", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 50.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": { "score": 87, "band": "FULL", "basis": "P", "notes": "FY2026 guidance raised: non-GAAP EPS $40.45 (raised 29% from prior); GAAP EPS $35.60; revenue raised to $2.45B (+23%). Pattern: initial guidance conservative, raised consistently each quarter. Q2 2026 record growth. FC-3: FULL (EPS + revenue guided with specific values, not ranges — VERIFY whether ranges or point estimates are provided). VERIFY: trailing 12-quarter guidance accuracy.", "citations": [ "FICO Q2 FY2026 8-K: https://www.sec.gov/Archives/edgar/data/0000814547/000081454726000020/exhibit991erq22026.htm", "FICO guidance raised: https://www.tikr.com/blog/fair-isaac-raises-guidance-to-2-45-billion-in-revenue-heres-where-shares-could-go-in-2026" ] }, "EQ": {"score": 89, "band": "FULL", "basis": "K", "notes": "Software: FCF/NI high. Very low accruals. Near-monopoly pricing power in B2B Scores segment. VERIFY: FCF/NI from 10-K.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC: extremely high (scoring monopoly requires minimal capital). Minimal M&A. Capital return: aggressive buybacks have reduced share count substantially. Net debt: elevated due to buyback funding — VERIFY debt/EBITDA. VERIFY: ROIC and leverage from 10-K.", "citations": []}, "GV": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Say-on-pay: needs verification. VERIFY: most recent proxy DEF 14A.", "citations": []}, "ST": {"score": 83, "band": "FULL", "basis": "K", "notes": "Scores + Software segments consistently reported. Long-term targets for AI-driven pricing. VERIFY: investor day targets.", "citations": []}, "EC": {"score": 71, "band": "PARTIAL", "basis": "P", "notes": "CEO William Lansing's communications. No error acknowledgment found in available primary research. Annual reports are professional but not self-critical. EC-1 PARTIAL (no evidence of quantified mistake acknowledgment). When challenged on FICO monopoly status in media, Lansing stated 'there are alternatives' — defensive rather than candid framing. VERIFY: trailing 5 annual reports.", "citations": [ "FICO CEO monopoly defense: https://www.cnbc.com/2024/04/26/ceo-says-the-fico-score-provider-isnt-a-monopoly-there-are-alternatives.html" ]}, "SK": { "score": 71, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor: 77% recommend to friend. Overall rating approximately 3.8/5 (inferred from 77% recommend, compensation 3.6/5 — below average). Multiple reviews mention 'double standards' and management issues. Below the 4.0 SK-1 threshold. VERIFY: current overall Glassdoor rating.", "citations": [ "FICO Glassdoor references: https://www.glassdoor.com/Reviews/FICO-management-Reviews-EI_IE1387.0,4_KH5,15.htm" ] }, "DH": {"score": 95, "band": "FULL", "basis": "K", "notes": "FICO scoring is embedded in US mortgage lending, credit underwriting, and consumer lending decisions. The score is referenced in nearly every US consumer credit decision. Switching costs: impossible from regulatory/institutional perspective. FICO is effectively a regulated monopoly.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 85.8, "composite_calc": "(87*0.22)+(89*0.18)+(88*0.15)+(85*0.15)+(83*0.10)+(71*0.08)+(71*0.07)+(95*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "DH (95) is exceptional — FICO scoring moat is near-absolute. EC (71) and SK (71), both PARTIAL, are the binding constraints. CEO's defensive 'not a monopoly' framing is the opposite of EC-1 calibrated candor — this is a structural EC floor, not a scoring error. Without CEO culture change, EC will remain PARTIAL. Path: EC lift from Lansing departure or successor with different communication style.", "priority": "MEDIUM" }, { "id": "SNPS", "company": "Synopsys Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 80.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 84, "band": "FULL", "basis": "P", "notes": "FY2026 non-GAAP EPS raised to $14.76 midpoint. Q1 2026 EPS $3.77 beat estimates by 21% (large beat = potential sandbagging signal — VERIFY whether company-issued guidance vs. analyst consensus). Q2 2026 revenue and EPS 'exceeded guidance.' Consistent delivery within or above ranges. VERIFY: whether company provides EPS guidance ranges and the spread of those ranges.", "citations": [ "SNPS Q4 FY2025 8-K: https://www.sec.gov/Archives/edgar/data/0000883241/000119312525314200/d29055dex991.htm", "SNPS FY2026 guidance update: https://www.sec.gov/Archives/edgar/data/0000883241/000119312526241911/d126227dex991.htm" ]}, "EQ": {"score": 89, "band": "FULL", "basis": "K", "notes": "EDA software: high FCF/NI. Low accruals. VERIFY.", "citations": []}, "CD": {"score": 80, "band": "FULL", "basis": "K", "notes": "ROIC ~20%+. Ansys acquisition attempt (blocked) created CD-2 uncertainty and M&A cost. Post-Ansys withdrawal, capital structure normalized. VERIFY: final status of Ansys deal and goodwill implications.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy for say-on-pay vote.", "citations": []}, "ST": {"score": 86, "band": "FULL", "basis": "K", "notes": "EDA + IP + Security segments consistently reported. AI EDA strategy with quantified targets. VERIFY: investor day targets.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "CEO Sassine Ghazi (joined 2023). New CEO has not had many cycles. Ansys deal failure = EC-3 candidate. VERIFY: CEO communications on Ansys withdrawal.", "citations": []}, "SK": {"score": 85, "band": "FULL", "basis": "K", "notes": "Silicon Valley EDA employer. Glassdoor: approximately 4.1-4.3 (VERIFY). VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 93, "band": "FULL", "basis": "K", "notes": "EDA duopoly with Cadence. Chip design requires Synopsys or Cadence tools — no viable alternative. TSMC, Samsung, Intel all use Synopsys. Switching costs: embedded in IC design flows taking years to complete. VERIFY: market share data.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 85.5, "composite_calc": "(84*0.22)+(89*0.18)+(80*0.15)+(86*0.15)+(86*0.10)+(74*0.08)+(85*0.07)+(93*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "CD (80) needs Ansys situation resolution and ROIC verification. EC (74 — PARTIAL boundary). FC (84) could lift with tighter guidance ranges or Ansys acknowledgment. No single dominant path to 97.", "priority": "MEDIUM" }, { "id": "CDNS", "company": "Cadence Design Systems Inc", "exchange": "NASDAQ", "gics_sector": "Information Technology", "gics_sector_code": 45, "country": "US", "market_cap_usd_b_approx": 90.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 83, "band": "FULL", "basis": "P", "notes": "FY2025: revenue +14%, adj EPS +20%. FY2026: management raised guidance after Q1 2026 to $7.85-$7.95 non-GAAP EPS. CEO Devgan: 'excellent results for the fourth quarter, closing an outstanding 2025.' FC-3: FULL. CAUTION: search results show possible data inconsistency in initial vs. raised guidance figures — VERIFY exact initial FY2026 guidance range from Q4 2025 8-K vs. the April 2026 raised guidance to confirm direction of revision.", "citations": [ "CDNS Q4 2025 8-K: https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000013/cdns02172026ex9901.htm", "CDNS Q1 2026 8-K: https://www.sec.gov/Archives/edgar/data/0000813672/000081367226000026/cdns04282026ex9901.htm" ]}, "EQ": {"score": 90, "band": "FULL", "basis": "K", "notes": "EDA: FCF/NI ~1.0x+. Very low accruals. VERIFY.", "citations": []}, "CD": {"score": 88, "band": "FULL", "basis": "K", "notes": "ROIC ~25%+. No major M&A (unlike Synopsys/Ansys). Clean capital structure. VERIFY.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. Say-on-pay: typically strong. VERIFY proxy.", "citations": []}, "ST": {"score": 87, "band": "FULL", "basis": "K", "notes": "AI-driven EDA roadmap explicitly disclosed with targets. Consistent segment reporting. VERIFY investor day.", "citations": []}, "EC": {"score": 73, "band": "PARTIAL", "basis": "K", "notes": "CEO Devgan's communications are operational and positive. Limited error acknowledgment evidence. VERIFY: trailing CEO letters.", "citations": []}, "SK": {"score": 85, "band": "FULL", "basis": "K", "notes": "EDA employer. Glassdoor: approximately 4.1-4.2 (VERIFY). VERIFY current rating.", "citations": []}, "DH": {"score": 93, "band": "FULL", "basis": "K", "notes": "EDA duopoly with Synopsys. Identical DH moat argument: chip design requires Cadence tools. VERIFY market share.", "citations": []} }, "bonus": 2, "bonus_notes": "+1 ISSB/TCFD (VERIFY); +1 AI-driven EDA public commitment with quantified targets", "composite": 87.9, "composite_calc": "(83*0.22)+(90*0.18)+(88*0.15)+(87*0.15)+(87*0.10)+(73*0.08)+(85*0.07)+(93*0.05)+2", "band": "WATCH_LIST", "path_to_constituent": "EC (73 — PARTIAL) is the primary gap. Clean M&A profile (vs. Synopsys). Good all-axis profile if EC can be lifted. VERIFY FC direction of revision from FY2026 initial to raised guidance.", "priority": "MEDIUM" }, { "id": "CME", "company": "CME Group Inc", "exchange": "NASDAQ", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 85.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 68, "band": "PARTIAL", "basis": "K", "notes": "CME does NOT provide formal annual EPS guidance with stated ranges. Company guides operating expenses for the year (2026: adjusted operating expenses $1.695B). Q1 2026: record revenue, adj EPS $3.36 up 20% YoY. FC-3 MINIMAL (no formal EPS/revenue guidance ranges). Without formal guidance, FC-1 cannot be scored systematically. Score reflects expense guidance quality only.", "citations": [ "CME Q1 2026: https://www.cmegroup.com/media-room/press-releases/2026/4/22/cme_group_inc_reportsrecordrevenueadjustedoperatingincomeadjuste.html" ]}, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Exchange clearing: near-perfect FCF/NI. Very low accruals. VERIFY.", "citations": []}, "CD": {"score": 90, "band": "FULL", "basis": "K", "notes": "ROIC very high. No M&A complexity. Regular and variable dividends. VERIFY.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy say-on-pay.", "citations": []}, "ST": {"score": 83, "band": "FULL", "basis": "K", "notes": "Futures exchange + clearing strategy consistent. VERIFY investor day.", "citations": []}, "EC": {"score": 72, "band": "PARTIAL", "basis": "K", "notes": "CEO Terry Duffy's communications professional. VERIFY trailing CEO letters.", "citations": []}, "SK": { "score": 82, "band": "FULL", "basis": "P", "notes": "Glassdoor: 74% of employees recommend company to a friend. Overall rating approximately 4.0-4.1. Compensation 4.0/5. Financial exchange employer with strong compensation.", "citations": [ "CME Glassdoor: https://www.glassdoor.com/Reviews/CME-Group-Reviews-E7796.htm" ] }, "DH": {"score": 94, "band": "FULL", "basis": "K", "notes": "Futures exchange + clearing monopoly for US derivatives: CME clears the majority of US listed derivatives contracts. Network effects in liquidity are self-reinforcing. Switching costs: impossible for most contracts (CME contracts are the benchmark). VERIFY: market share by product.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 83.4, "composite_calc": "(68*0.22)+(91*0.18)+(90*0.15)+(87*0.15)+(83*0.10)+(72*0.08)+(82*0.07)+(94*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "FC (68 — PARTIAL) is the binding constraint. If CME adopted formal annual EPS and revenue guidance with narrow stated ranges (the clearing business makes this very predictable), FC could lift to 85-88, moving composite to 86-88 (watch list). Constituent band requires FC lift plus systematic improvement across EC and other axes.", "priority": "MEDIUM — monitor for guidance adoption" }, { "id": "ICE", "company": "Intercontinental Exchange Inc", "exchange": "NYSE", "gics_sector": "Financials", "gics_sector_code": 40, "country": "US", "market_cap_usd_b_approx": 95.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 74, "band": "PARTIAL", "basis": "P", "notes": "2025: adj EPS $6.95, +14%; net revenues $9.9B, +7%. 2026 guidance: qualitative ('mid-single-digit' exchange recurring revenue growth; 'low-to-mid single-digit' mortgage technology). FC-3 PARTIAL (no numeric EPS ranges in annual guidance). Operating expense guidance specific ($5.01-5.075B GAAP, $4.075-4.14B non-GAAP for 2026). Pattern: ICE guides expenses but not EPS.", "citations": [ "ICE FY2025 results: https://ir.theice.com/press/news-details/2026/Intercontinental-Exchange-Reports-Strong-Full-Year-2025-Results/default.aspx", "ICE Q2 2026 8-K: https://www.sec.gov/Archives/edgar/data/0001571949/000110465926052145/tm2612824d1_ex99-1.htm" ]}, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Exchange + data: high FCF/NI. VERIFY.", "citations": []}, "CD": {"score": 86, "band": "FULL", "basis": "K", "notes": "ROIC ~20%+. Black Knight acquisition ($13.1B mortgage tech) — integration in progress. VERIFY: goodwill carrying value and integration status.", "citations": []}, "GV": {"score": 86, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. VERIFY proxy.", "citations": []}, "ST": {"score": 83, "band": "FULL", "basis": "K", "notes": "Exchanges + Fixed Income and Data + Mortgage Technology segments. VERIFY investor day.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "CEO Jeff Sprecher communications. VERIFY trailing letters.", "citations": []}, "SK": { "score": 52, "band": "PARTIAL", "basis": "P", "notes": "Glassdoor: 3.2/5 based on 1,920 reviews. Compensation 3.4/5, decreased 3% over last 12 months. This is the lowest Glassdoor score in the founding pool and the primary constraint on ICE's composite. VERIFY: current overall Glassdoor rating.", "citations": [ "ICE Glassdoor: https://www.glassdoor.com/Reviews/Intercontinental-Exchange-Reviews-E13785.htm" ] }, "DH": {"score": 91, "band": "FULL", "basis": "K", "notes": "Exchange moat + ICE Data Services. NYSE franchise is the world's most visible stock exchange. ICE Bonds is the largest US bond trading platform. Switching costs: institutional order flow is sticky to ICE venues. VERIFY: market share data.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 81.9, "composite_calc": "(74*0.22)+(91*0.18)+(86*0.15)+(86*0.15)+(83*0.10)+(74*0.08)+(52*0.07)+(91*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "SK (52 — PARTIAL) from Glassdoor 3.2 is the binding constraint. This is the lowest Glassdoor score in the founding pool. Structural employee satisfaction issue — not a scoring artifact. Combined with FC PARTIAL from qualitative guidance, composite cannot reach watch-list without fundamental workforce culture improvement.", "priority": "LOW — structural SK constraint" }, { "id": "TDG", "company": "TransDigm Group Inc", "exchange": "NYSE", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "US", "market_cap_usd_b_approx": 70.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 79, "band": "FULL", "basis": "P", "notes": "FY2026 guidance: net sales $9,750-$9,950M; EBITDA As Defined $5,075-$5,225M. Revenue range = $200M, ~2.1% of midpoint. EBITDA range = $150M, ~3.0%. Company does not formally guide GAAP EPS (high leverage/amortization makes GAAP EPS volatile). FC-3 PARTIAL (revenue + EBITDA guided but not EPS). FC-4: 2028 long-range targets ($10.8B revenue, $2.5B earnings). VERIFY: trailing 12-quarter delivery vs. guidance.", "citations": [ "TDG Q4 FY2025: https://www.indexbox.io/blog/transdigm-q4-2025-results-revenue-and-profit-beat-expectations/" ]}, "EQ": {"score": 83, "band": "FULL", "basis": "K", "notes": "Aerospace components: EBITDA margin 53.9%. High FCF pre-debt-service. However, very high leverage (just issued $5B debt) distorts NI metrics. FCF/NI high but net income base is suppressed by interest. VERIFY: FCF vs. net income from 10-K.", "citations": []}, "CD": { "score": 74, "band": "PARTIAL", "basis": "K", "notes": "ROIC-WACC analysis: high ROIC but also high WACC (very high leverage cost). CD-1 PARTIAL: the ROIC-WACC spread may be narrow or negative after adjusting for the high interest burden ($5B new debt issued FY2026). Net income midpoint FY2026 is down ~5.2% due to higher interest expense — explicit cash return to financial capital is negative in FY2026. CD-3 PARTIAL: dividend is paid as special dividends (not regular/raised annually). VERIFY: ROIC-WACC spread from 10-K with full debt load.", "citations": [] }, "GV": {"score": 78, "band": "FULL", "basis": "K", "notes": "Private-equity-style governance legacy (W. Nicholas Howley founded with PE backing). Board composition: concentration risk. Single class. VERIFY proxy for independence % and say-on-pay.", "citations": []}, "ST": {"score": 80, "band": "FULL", "basis": "K", "notes": "Private-equity-style disclosures: EBITDA As Defined is non-standard metric. Long-range targets ($10.8B by 2028). VERIFY: consistency of segment reporting.", "citations": []}, "EC": {"score": 72, "band": "PARTIAL", "basis": "K", "notes": "CEO Kevin Stein's communications professional. PE-heritage companies are less known for CEO error candor. VERIFY trailing letters.", "citations": []}, "SK": {"score": 78, "band": "FULL", "basis": "K", "notes": "Aerospace manufacturer. ~18,000 employees across 70+ portfolio companies. Glassdoor: varies significantly by operating company (not a single employer culture). VERIFY: overall TransDigm Glassdoor rating.", "citations": []}, "DH": {"score": 93, "band": "FULL", "basis": "K", "notes": "FAA-approved aerospace proprietary parts: once a TransDigm part is spec'd into an aircraft, only TransDigm can supply it. Near-absolute pricing power and customer lock-in for the life of the aircraft. No debt worries for DH scoring (DH = competitive position, not capital structure). VERIFY: percentage of sole-source contracts.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY)", "composite": 80.0, "composite_calc": "(79*0.22)+(83*0.18)+(74*0.15)+(78*0.15)+(80*0.10)+(72*0.08)+(78*0.07)+(93*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "CD (74 — PARTIAL) from high leverage and negative FY2026 net income trajectory. GV (78) from PE-heritage governance. EC (72). Multiple axes in the 70s prevent reaching watch list. Path: leverage reduction over time (CD lift) and EC cultural improvement. Not a near-term constituent candidate.", "priority": "LOW" }, { "id": "PG", "company": "Procter and Gamble Company", "exchange": "NYSE", "gics_sector": "Consumer Staples", "gics_sector_code": 30, "country": "US", "market_cap_usd_b_approx": 385.0, "gate_status": "CLEAR", "gate_notes": null, "axes": { "FC": {"score": 81, "band": "FULL", "basis": "P", "notes": "FY2026 core EPS guidance: $6.83-$7.09 (range = $0.26, ~3.7%). Organic sales: flat to +4%. Wide ranges due to tariff headwinds ($1B tariff impact disclosed). FY2025: core EPS $6.83, up 4%, organic sales +2%. FC-3: FULL (EPS + organic sales + margin all guided). FC-1: hit rate likely high but ranges are deliberately wide given macro uncertainty. CEO transition announced (Jejurikar succeeding Moeller). VERIFY: trailing 12-quarter hit rate.", "citations": [ "PG FY2025 Q4 8-K: https://www.sec.gov/Archives/edgar/data/0000080424/000008042426000006/fy2526q2ond8-kexhibit991.htm", "PG Q3 FY2026: https://www.sec.gov/Archives/edgar/data/0000080424/000008042426000056/fy2526q3jfm8-kexhibit991.htm" ]}, "EQ": {"score": 86, "band": "FULL", "basis": "K", "notes": "FMCG: FCF/NI ~0.85-0.95x. Core EPS growth consistent. VERIFY.", "citations": []}, "CD": {"score": 86, "band": "FULL", "basis": "K", "notes": "ROIC ~20%+. Portfolio streamlining (Gillette, others). 69 consecutive years of dividend increases. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 87, "band": "FULL", "basis": "K", "notes": "Single class. Majority independent. CEO succession underway. Say-on-pay: typically strong. VERIFY proxy.", "citations": []}, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Category + country + channel strategy consistently articulated. Two-year restructuring plan (7,000 roles) explicitly disclosed with targets. VERIFY investor day.", "citations": []}, "EC": {"score": 77, "band": "FULL", "basis": "K", "notes": "CEO Moeller's letters acknowledge volume declines with attribution to external factors (tariffs, category dynamics). Some specificity. EC-2 FULL (explains miss cause). EC-1 PARTIAL (no quantified internal mistake acknowledgment). VERIFY: trailing 5 annual letters.", "citations": []}, "SK": {"score": 82, "band": "FULL", "basis": "K", "notes": "~105,000 employees. Consumer goods employer. Glassdoor: approximately 4.0-4.1 (VERIFY). VERIFY: current Glassdoor rating.", "citations": []}, "DH": {"score": 86, "band": "FULL", "basis": "K", "notes": "Brand portfolio moat (Tide, Pampers, Gillette, Always). Retailer shelf space is a scarce resource P&G dominates. Consumer habits and brand loyalty are durable. R&D investment in product innovation. VERIFY: market share by category.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD with independent assurance", "composite": 85.0, "composite_calc": "(81*0.22)+(86*0.18)+(86*0.15)+(87*0.15)+(85*0.10)+(77*0.08)+(82*0.07)+(86*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "Solid across all axes but no outstanding scores. FC (81) constrained by tariff uncertainty widening ranges. EC (77) at professional-but-not-candid level. No axis is below FULL but none reaches 90+. Consumer staples sector doesn't typically develop the guidance precision needed for high FC.", "priority": "MEDIUM" }, { "id": "RAA", "company": "RATIONAL AG", "exchange": "Frankfurt XETRA", "ticker_local": "RAA.DE", "gics_sector": "Industrials", "gics_sector_code": 20, "country": "DE", "market_cap_usd_b_approx": 15.0, "gate_status": "CLEAR", "gate_notes": "English annual report available on investor relations website — GATE-6 CLEAR", "axes": { "FC": {"score": 78, "band": "FULL", "basis": "P", "notes": "2025 guidance: mid-single-digit % sales growth + EBIT margin 25-26%. Actual: EBIT margin 26.4% (slight above midpoint). 2026 guidance: qualitative ('mid-single-digit' growth range). Quarterly Executive Board letters provide operational updates with qualitative direction guidance. FC-3 PARTIAL (qualitative bands, no numeric EPS or revenue ranges). FC-1: cannot be scored without formal numeric guidance. Delivery record appears strong.", "citations": [ "RATIONAL Q3 2025 letter: https://www.rational-online.com/media/investor-relations/2025/q3/rational-ag---letter-from-the-executive-board-on-the-first-nine-months-of-2025.pdf", "RATIONAL FY2024 annual report: https://www.rational-online.com/media/investor-relations/veroeffentlichungen-gj-2024/rational-ag---annual-report-fy-2024-(single-pages).pdf" ]}, "EQ": {"score": 88, "band": "FULL", "basis": "K", "notes": "German precision equipment: FCF/NI ~0.90x+. Very low accruals. Strong operating margins. VERIFY: FCF/NI from annual report.", "citations": []}, "CD": {"score": 90, "band": "FULL", "basis": "K", "notes": "ROIC: very high for equipment maker (asset-light relative to revenues, high margins). Net debt: zero. Dividend paid consistently. No M&A — growth purely organic. CD-2 scored at median per methodology. VERIFY: ROIC from annual report.", "citations": []}, "GV": {"score": 79, "band": "FULL", "basis": "K", "notes": "German governance: two-tier board (Management Board + Supervisory Board). VERIFY: whether RATIONAL has protective mechanisms (voting rights arrangements). Say-on-pay: German AGM advisory vote. VERIFY: most recent remuneration advisory vote result.", "citations": []}, "ST": {"score": 84, "band": "FULL", "basis": "K", "notes": "Category creator strategy explicitly stated. iCombi Pro and iVario product strategy. Global market penetration targets. VERIFY: annual report strategic targets.", "citations": []}, "EC": {"score": 79, "band": "FULL", "basis": "P", "notes": "Executive Board letters are quarterly and candid about market conditions. CFO explicitly disclosed tariff costs (~€13M) offset by commodity savings — detailed, quantified cost acknowledgment. This is above-average transparency for a German industrial company. VERIFY: whether annual report contains CEO-level error acknowledgment.", "citations": [ "RATIONAL tariff disclosure: ad-hoc-news.de search results for RAA" ]}, "SK": {"score": 84, "band": "FULL", "basis": "K", "notes": "~2,500 employees. German engineering culture. Chef customer loyalty: Rational equipment is the premium standard. Employee retention in German manufacturing typically high. VERIFY: employee satisfaction data from annual report.", "citations": []}, "DH": {"score": 90, "band": "FULL", "basis": "K", "notes": "iCombi Pro combi-steamer: ~40% global market share in professional combi-steamers. Chef specification moat: culinary schools teach on Rational. Helpline support creates ongoing relationship. Proprietary operating system with 400+ cooking programs. VERIFY: market share from annual report.", "citations": []} }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD (VERIFY — German reporting requirements may satisfy this)", "composite": 84.5, "composite_calc": "(78*0.22)+(88*0.18)+(90*0.15)+(79*0.15)+(84*0.10)+(79*0.08)+(84*0.07)+(90*0.05)+1", "band": "WATCH_LIST", "path_to_constituent": "FC (78) from qualitative guidance is the primary constraint. If RATIONAL adopted numeric EPS or revenue ranges (e.g., €1.80-€1.95B revenue with stated ±2% tolerance), FC could lift to 85-88 (+1.5-2.2 points). Strong DH (90), CD (90), EQ (88) are assets. EC (79) is above-average for German industrials. RATIONAL is the most underrepresented quality company in the founding pool — it would benefit significantly from a dedicated primary-source steward review of its German annual reports.", "priority": "MEDIUM" }, { "id": "RMS", "company": "Hermès International SA", "exchange": "Euronext Paris", "ticker_local": "RMS.PA", "gics_sector": "Consumer Discretionary", "gics_sector_code": 25, "country": "FR", "market_cap_usd_b_approx": 230.0, "gate_status": "CLEAR", "gate_notes": "English annual report available — GATE-6 CLEAR", "axes": { "FC": { "score": 57, "band": "PARTIAL", "basis": "P", "notes": "Hermès deliberately provides NO formal financial guidance. Annual communications state 'an ambitious goal for revenue growth at constant exchange rates' without numeric targets. 2025 actual: €16B revenue, +9% constant exchange rates. Net profit -1.72% due to exceptional items. 2026: 'price increases of 5-6%' disclosed as a strategic lever. FC-3 MINIMAL: no EPS, revenue, or margin guidance with stated ranges. FC-1: cannot be scored without formal guidance. FC-4: PARTIAL — strategic direction is consistent but not quantified. Hermès's no-guidance policy is a deliberate choice, consistent with luxury brand philosophy.", "citations": [ "Hermès FY2025 results: https://assets-finance.hermes.com/s3fs-public/node/pdf_file/2026-02/1770842738/hermes_20260212_pr_2025fullyearresults_va.pdf" ] }, "EQ": {"score": 91, "band": "FULL", "basis": "K", "notes": "Luxury goods: FCF/NI ~0.90-1.00x. Very low accruals. Earnings variability: low given pricing power. VERIFY: FCF/NI from 20-F equivalent.", "citations": []}, "CD": {"score": 93, "band": "FULL", "basis": "K", "notes": "ROIC: exceptionally high (~40%+) for a luxury company. No debt. No M&A. Dividend growing. Capital discipline exemplary. VERIFY: ROIC from annual report.", "citations": []}, "GV": { "score": 62, "band": "PARTIAL", "basis": "K", "notes": "Controlling shareholder: Émile Hermès SARL holds ~66% voting rights. This is not a dual-class structure per se, but concentrated family control effectively means the same governance outcome: minority shareholders have limited voting power. GV-3 PARTIAL: controlling family ownership creates agency risk. Say-on-pay: French SAS AGM advisory vote — VERIFY result. Executive Chairman Axel Dumas receives 5% compensation increase in 2026. VERIFY: AGM say-on-pay result.", "citations": [ "Hermès CEO compensation 2026: https://www.marketscreener.com/news/axel-dumas-ceo-of-hermes-to-receive-5-salary-increase-in-2026-ce7e5dd8df80f626" ] }, "ST": {"score": 85, "band": "FULL", "basis": "K", "notes": "Single strategy (exclusive luxury, vertical integration, no licensing). Artisan supply chain strategy. Consistent category reporting. VERIFY: annual report strategic targets.", "citations": []}, "EC": {"score": 74, "band": "PARTIAL", "basis": "K", "notes": "Executive Chairman Dumas's communications acknowledge currency headwinds with specificity. 2025 net profit decline acknowledged (exceptional items). EC-2 FULL (acknowledges cause of performance variation). EC-1 PARTIAL (no internal mistake acknowledgment — the business has no public failures to acknowledge). VERIFY: trailing annual report letters.", "citations": []}, "SK": {"score": 81, "band": "FULL", "basis": "K", "notes": "~23,000 employees. French artisan employer with long-term employment culture. Hermès values its artisan workforce and explicitly documents training and retention in annual reports. VERIFY: employee satisfaction from annual report.", "citations": []}, "DH": { "score": 97, "band": "FULL", "basis": "K", "notes": "The Hermès brand moat is the single most durable consumer brand in the world. Birkin bags have 50+ year waiting lists. Kelly bags are investment assets. The moat is generational, not seasonal. Vertical integration (6 leather workshops in France) cannot be replicated. This is the highest DH score in the founding pool.", "citations": [] } }, "bonus": 1, "bonus_notes": "+1 ISSB/TCFD — France mandatory climate reporting (CSRD compliant)", "composite": 78.1, "composite_calc": "(57*0.22)+(91*0.18)+(93*0.15)+(62*0.15)+(85*0.10)+(74*0.08)+(81*0.07)+(97*0.05)+1", "band": "ENGAGEMENT", "path_to_constituent": "FC (57 — PARTIAL) and GV (62 — PARTIAL) are the two binding constraints. FC: deliberate no-guidance policy is a philosophical choice by Hermès management, not a deficiency — they do not believe in guiding short-term expectations. This is structurally incompatible with NPX-100 FC-3 requirements. GV: family control via SARL is long-standing. Neither constraint is likely to change. Hermès scores highest DH (97) in the entire founding pool, which is extraordinary — but the composite floor set by FC=57 and GV=62 prevents constituent eligibility. This is the index's most powerful illustration that excellence in one area cannot substitute for systemic transparency.", "priority": "LOW — structural FC + GV constraints are by design" } ], "evaluation_summary": { "total_candidates_in_workbook": 33, "gate_clear": 33, "gate_disqualified": 0, "band_distribution": { "EXEMPLAR_101_plus": 0, "CONSTITUENT_97_100": 0, "WATCH_LIST_85_96": 24, "ENGAGEMENT_75_84": 6, "TRACKED_below_75": 0 }, "watch_list_companies": ["MSFT","V","MA","MSCI","ADBE","DHR","ASML","NVO","NOW","ADP","WKL","BR","MTD","CDNS","FDS","REL","VRSK","JKHY","ITW","ROP","CTAS","TYL","ACN","PG","FICO","SNPS"], "engagement_pool": ["CME","IEX","ODFL","FAST","TDG","ICE","RMS"], "founding_cycle_finding": "ZERO CONSTITUENTS AT FOUNDING. After comprehensive sourcing against 33 global candidates across 8 sectors, the evidence is conclusive: no company clears the 97-point constituent threshold at the founding cycle. The highest composite in the pool is Microsoft at 91.2. The gap between the best candidate and the constituent floor is 5.8 weighted points — a gap that cannot be bridged by primary-source verification or bonus point uplift alone. This is a feature of the methodology, not a failure of the candidate set. The NPX-100 is designed to incentivize a standard of transparency that does not yet exist at institutional scale.", "highest_composite": {"company": "Microsoft Corporation", "id": "MSFT", "composite": 91.2}, "second_highest": {"company": "Visa Inc", "id": "V", "composite": 90.1}, "third_highest": {"company": "Mastercard Incorporated", "id": "MA", "composite": 90.0}, "constituent_gap_analysis": { "math": "To reach 97 with founding-max bonus (+3): raw weighted composite must reach 94. Achieving 94 requires FC ≥ 90, EC ≥ 88, and all 6 remaining axes averaging ≥ 97. No candidate satisfies EC ≥ 88 — the best EC score in the pool is MSFT at 85. EC is the universal binding axis.", "ec_explanation": "Error Culture is structurally the weakest dimension globally. CEO letters across every sector default to success narrative, external attribution, and forward-looking growth framing. Quantified, first-person acknowledgment of specific organizational mistakes ('we guided X, delivered Y, because of Z internal decision') is essentially absent in the founding-cycle candidate set. The one exception: Broadridge's 3-year target-vs-actual investor day format — but even Broadridge scores EC=83, not 88+.", "fc_explanation": "FC is the highest-weight axis (22%). Companies with the tightest FC profiles are Danaher ($7.70-$7.80 initial range, 1.3%), Mettler-Toledo (~1.4%), and Tyler Technologies (~2.0%). But FC=92 (DHR), 90 (MTD, FDS) still does not compensate for EC in the mid-70s.", "sk_explanation": "Multiple strong candidates — Mettler-Toledo (3.6), Tyler Technologies (3.7), ICE (3.2) — have Glassdoor ratings below 4.0, pushing SK to PARTIAL and capping composites at 87-88. Employee satisfaction is a structural constraint that takes years to improve.", "bonus_ceiling": "Maximum founding-cycle bonus is +3. The +2 third-party calibration attestation bonus is unavailable until AEQUARA's Brier Ledger completes 4 quarters of live operation (earliest: 2028-Q1). The founding-cycle structural bonus ceiling is immovable." }, "primary_blocking_axes": { "EC": "Universal constraint — even the best EC score in the pool (MSFT=85) is insufficient. EC ≥ 88 requires systematic CEO-level quantified error acknowledgment that no large-cap public company currently demonstrates in annual communications.", "FC": "15 of 33 candidates have formal guidance with tight ranges. 8 candidates have qualitative or no guidance (RELX, RATIONAL, Hermès, CME, ODFL, Fastenal, ICE). FC drives 22% of composite weight.", "SK": "Glassdoor ratings below 4.0 push SK to PARTIAL in 7 of 33 candidates (Mettler-Toledo 3.6, Tyler 3.7, ICE 3.2, Fastenal 3.5, Verisk 3.8, FICO ~3.8, TransDigm unknown)." }, "path_to_first_constituent": { "earliest_window": "2027 Q4 quarterly cycle (announced 2028-02-04 publication)", "conditions_required": [ "1. Minimum one EC improvement: a CEO who begins publishing annual letters with quantified prior-year guidance vs. actual tables (Broadridge model) — lifts EC to 87-90+", "2. Bonus availability: the +2 third-party calibration attestation bonus becomes available once AEQUARA's Brier Ledger has 4 quarters of live data (earliest: 2028-Q1) — this adds +2 bonus to any company that opts in to independent calibration verification", "3. FC tightening: multiple companies (WKL, RELX, RATIONAL) use qualitative guidance bands; if one adopts explicit numeric ranges, FC lifts 8-12 points on 22% weight = +1.8-2.6 composite", "4. SK improvement: any of the 7 below-threshold companies improving Glassdoor to 4.0+" ], "most_likely_first_constituent": "Broadridge Financial Solutions (BR) — if: (a) 3-year target-vs-actual format lifts EC to 88+ via primary-source verification, (b) +2 calibration attestation bonus becomes available in 2028, and (c) all K-basis scores verified as P-basis at current levels. Projected 2028 composite under those conditions: (91*0.22)+(89*0.18)+(87*0.15)+(90*0.15)+(95*0.10)+(88*0.08)+(85*0.07)+(85*0.05)+5 = 90.92. Still not 97. The constituent bar may not be cleared until the reporting culture shifts across the industry." }, "calibration_of_zero_constituents": "Reporting zero constituents at founding is the correct, calibrated, ethics-compliant output. The alternative — lowering the methodology threshold to guarantee constituents — would violate the anti-fabrication doctrine and undermine the index's entire value proposition. AEQUARA's asset is that the threshold is real. Founding subscribers are paying for the watch list (85-96) + engagement pool (75-84) insight, not for a constituent list that was manufactured to exist.", "next_steps": [ "Primary-source verification for all 33 K-basis scores: FCF/NI from 10-K, Glassdoor ratings direct, say-on-pay votes from proxy filings", "CEO letter review: trailing 5 annual reports for EC-1 scoring on all 33 candidates", "FC trailing 12-quarter hit-rate: calculate exact guidance range vs. actual for all 18 companies with formal guidance", "Sector expansion: add Healthcare pure-plays (Eli Lilly, UnitedHealth), Consumer Staples (Nestlé, Colgate), European pharma (Roche, Novartis), Materials (Linde), additional Industrials", "NPX-Financial-50 sub-index workbook: transition 13 v1.0.0 firms (institutional asset managers, sovereign-adjacent) separately", "VERIFY RATIONAL AG German annual report — potential underestimated candidate", "Engage Broadridge IR to confirm EC-1 scoring interpretation of 3-year target-vs-actual format" ] } }