We can easily see that the best wealth creating company is Parkland Fuel Corporation (PKI) since it is the highest company on the Y-axis. The Y-axis represents the Economic Performance Index which is the Return-on-Capital divided by Cost-of-Capital.
Also notice that it is on the right-hand side reflecting a discounted stock price.
In general, we want to avoid companies that are below the x-axis because that means that the company’s costs are too high to sustain. However, this depends on the sector. For the energy sector for example the costs of capital are huge and therefore the average Economic Performance Index would be lower than a more stable sector (such as Financials).
Lastly, companies that are in the bottom left are in the least attractive positioning, at the moment, since they’re returns are not covering their costs efficiently AND their stock is trading at a premium.