Morningstar published its list, and 14 of the 16 companies are British. I ran the 13 I’ve already analyzed through my tool:
🟢 EXCELLENT (4)
• $NWG (-0.77%) NatWest - 5.06%, P/E ratio 8.68x, quality 75/100
• $RKT (-0.12%) Reckitt - 4.16%, P/E ratio 11.6x
• $HSBA (-0.38%) HSBC - 3.70%, P/E ratio 10.36x
• $LLOY (+0%) Lloyds - 3.58%, P/E ratio 15.6x
🟣 WATCH (3)
• Relx, AstraZeneca, and Unilever ($REL (+0.16%) , $AZN (+0.3%) , $ULVR (-0.56%) ). Quality businesses, but valuations no longer offer room to run
🟠 CAUTION (4)
• BP (4.87%), Shell (3.39%), Rio Tinto (4.52%), and Barclays ($BP. (+1.24%)
$SHEL (+0.82%) , $RIO (-1.28%) , $BARC (+0.09%) ). High returns that mask cyclicality. The 78% marginal tax rate on oil in the UK doesn’t help
🔴 LOW THRESHOLD (2)
• Rolls-Royce $RR. (-0.09%) : It’s on Morningstar’s list, but pays 0.39%. Quality 35, Opportunity 5
• Glencore $GLEN (+0.22%) : Quality 10/100. A high yield can also mask a declining business