Free Cash Flow Margin (%)
Our accounting screen is set to trigger a red flag when the free cash flow margin is in the lowest 20th percentile relative to GICS industry peers (i.e. it is very low), and/or when there is an abnormally large decrease relative to the normal rate of change amongst industry peers over one and three years. This latter red flag is triggered when the increase in capex to sales is in the 20th percentile relative to the change experienced by industry peers between 2010 and 2015. For scoring purposes we reverse the percentile.