Screen the sector that compounds on software margins and reinvested cash flow.
The technology sector spans software, semiconductors, hardware and IT services — businesses that turn intellectual property into high-margin, recurring revenue. It is where the market pays the richest multiples, so screening on quality and cash generation, not just growth, is what separates durable compounders from expensive stories.
Illustrative — not investment advice.
| Ticker | Company | Sub-industry |
|---|---|---|
| AAPL | Apple | Consumer hardware & services |
| MSFT | Microsoft | Software & cloud infrastructure |
| NVDA | NVIDIA | Semiconductors & accelerated computing |
| AVGO | Broadcom | Semiconductors & infrastructure software |
| ORCL | Oracle | Enterprise software & cloud |
| CRM | Salesforce | Customer-relationship software |
| ADBE | Adobe | Creative & document software |
| AMD | Advanced Micro Devices | Semiconductors |
| CSCO | Cisco Systems | Networking hardware & software |
| ACN | Accenture | IT consulting & services |
| INTC | Intel | Semiconductors & foundry |
| TXN | Texas Instruments | Analog semiconductors |
Software and chip leaders are valued on durable top-line growth; a growth floor screens out mature, slowing names dressed up as compounders.
High gross margins signal pricing power and a software-like cost structure — the engine behind tech’s premium valuations.
Free-cash-flow yield keeps you honest on price: it turns a rich P/E into cash you’d actually own, filtering out stories that never convert growth to cash.
Return on invested capital shows whether reinvested R&D and acquisitions actually earn their keep — the mark of a real compounder.
Capital is flooding into accelerated computing, data centres and the chips that power them — reshaping which parts of the sector earn the best returns on capital.
After a decade of “growth at any cost”, the market now rewards profitable growth: durable gross margins and real free cash flow, not bookings alone.
Chip demand still swings with the cycle. Screening on balance-sheet strength and cash flow helps you tell structural winners from cyclical peaks.
Sign up in a moment — no credit card. The full screener is on the free plan.
Add a sector filter, then stack valuation, quality, growth and income filters with ≥, ≤ and range operators to match your thesis.
Open any survivor for a DCF you control, then save it to a watchlist with a margin-of-safety target so each name carries an undervalued / fair / rich signal.
Rather than chase a fixed list, screen the sector on the metrics that drive tech returns: durable revenue growth, high gross margins, strong free-cash-flow yield and high return on invested capital. That surfaces quality compounders instead of expensive stories.
Open any ticker in Lemma Analysis and the DCF is pre-filled from years of financials. Adjust growth, margins and WACC to see fair value, margin of safety and a bear/base/bull spread — then run a reverse DCF to see the growth today’s price already assumes.
Yes. Create a free account with no credit card and screen the full universe of listed companies, technology included, on fundamental filters.
Gross margin and free-cash-flow yield are the tell-tales: they separate genuinely capital-efficient software and semiconductor businesses from richly priced names that never convert growth into cash.
Free to start. No credit card.