In my book, for something to be defined to be a "quality stock" it needs to be able to be valued first.
So permit me to answer your question with another question:
If they don't generate free cash flow, how would you value them?
Buru Energy certainly fails my "quality" threshhold...by a long margin, I have to add.
Sirtex might indeed be a quality stock (it does generate surplus capital, but this needs further evaluation in terms a whole range of other parameters (eg. how robust and sustainable is the FCF, how granular is the customer base, how dependent is the company on critical suppliers, what are the technological or obsolescence risks, who has the pricing power in the supply chain, how are the financial statements presented in terms of prudential padding and conservativeness, how trustworthy and competent ar eth board and management in terms of shareholder value creation, and many more)
