The G-Score is a financial analysis framework developed by Professor Partha Mohanram in 2005. It was specifically designed to evaluate growth stocks, serving as a counterpart to Joseph Piotroski’s F-Score system for value stocks. The framework assesses eight critical indicators of a company’s financial health, with particular emphasis on metrics relevant to growth-oriented companies.
This analytical system evaluates how consistently companies invest in their future through research and development, capital expenditures, and advertising initiatives. Additionally, it examines profitability metrics such as return on assets and operational cash flow. Companies receive one point for each positive indicator, with a maximum possible score of eight points. Higher scores indicate stronger growth potential.
The G-Score’s distinctive value lies in its focus on sustainable rather than merely rapid growth. When Mohanram tested this system, he discovered that investors could achieve above-market returns by purchasing stocks with high G-Scores while shorting those with low scores. This methodology helps identify companies with enduring competitive advantages, distinguishing them from businesses experiencing only temporary success or facing significant competitive pressures.
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Here are Validea’s top 10 G Score stocks for March of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Mohanram G Score |
|---|---|---|---|---|---|---|---|---|---|---|
| AMZN | AMAZON.COM INC | $212.28 | $2,249,686 | 38.4 | 3.5 | 73 | 7.9 | 20.1 | 0.0% | 8 |
| AVY | AVERY DENNISON CORP | $187.97 | $14,849 | 21.5 | 1.7 | 44 | 6.5 | 14.6 | 1.8% | 8 |
| BCPC | BALCHEM CORP | $174.03 | $5,662 | 44.3 | 5.9 | 67 | 4.9 | 32.1 | 0.5% | 8 |
| BIDU | BAIDU INC (ADR) | $86.45 | $30,314 | 9.3 | 1.7 | 44 | 0.8 | 7.1 | 0.0% | 8 |
| BOX | BOX INC | $32.70 | $4,699 | 40.8 | 4.4 | 77 | 1.9 | 26.4 | 0.0% | 8 |
| DECK | DECKERS OUTDOOR CORP | $139.36 | $21,151 | 22.6 | 4.3 | 49 | 8.0 | 21.0 | 0.0% | 8 |
| EXEL | EXELIXIS INC | $38.69 | $10,829 | 21.8 | 5.0 | 91 | 4.9 | 19.7 | 0.0% | 8 |
| NOW | SERVICENOW INC | $929.76 | $191,531 | 136.0 | 17.4 | 74 | 20.0 | 96.3 | 0.0% | 8 |
| PII | POLARIS INC | $44.92 | $2,520 | 23.0 | 0.4 | 23 | 2.0 | 6.3 | 5.9% | 8 |
| PLTK | PLAYTIKA HOLDING CORP | $5.28 | $1,982 | 12.1 | 0.8 | 34 | 11.3 | 6.0 | 7.6% | 8 |
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