5-Year Revenue Growth Filter: Separating Compounders from Stagnators

What does 5-Year Revenue Growth measure?

The 5Y Revenue Growth filter shows the compound annual growth rate (CAGR) of a company's revenue over the past five years. A 10% result means the company has doubled its revenue (roughly) over the past seven years and is expanding at a healthy clip.

Revenue growth is the engine that drives everything else: if revenue isn't growing, margins can only be squeezed so far before earnings start declining.

Why it matters for assignment risk

Being assigned on a CSP means you own the stock. You want to own businesses where:

• Revenue is growing consistently.
• Future earnings are likely to be higher than today's.
• The share price has a fundamental reason to recover after a dip.

A stock with flat or declining revenue has no fundamental tailwind to rescue you after an adverse move.

Recommended ranges

Using the filter

1. Open the Stock Screener.
2. Find 5Y Rev % in the Growth section.
3. Set minimum to 5% for a broad screen.
4. Combine with 5Y EPS % ≥ 5% to confirm earnings are keeping pace with revenue.

Revenue growth ≠ earnings growth

A company can grow revenue 20% per year while profits stay flat (or decline) if it's spending heavily on growth. Cross-reference with Net Margin to ensure revenue growth is translating into actual profitability.

Common mistake: ignoring the base effect

A small company growing from $10M to $20M in revenue shows 100% growth — but context matters. The screener helps by combining the growth filter with a Market Cap minimum, focusing on larger companies where the growth is more meaningful and the underlying business more stable.