Methodology · formulas

EPS (TTM) = sum of last 4 quarters' net income ÷ diluted shares outstanding

We sum net income over the last four completed quarters, then divide by diluted shares outstanding. We don't compute it if fewer than four quarters of data exist.

P/E = current price ÷ EPS (TTM)

The current price uses Massive API snapshot data. If EPS is ≤ 0 (a loss), P/E is meaningless, so we show —.

Operating margin = operating income ÷ revenue × 100

Based on the most recent quarter. We parse the OperatingIncomeLoss / Revenues tags from SEC EDGAR.

ROE = annual net income (TTM) ÷ stockholders’ equity × 100

The denominator uses stockholders' equity at the most recent quarter-end. If equity is negative, we show —.

Debt-to-equity = long-term debt ÷ stockholders’ equity

Based on long-term debt, not short-term. If equity is negative or there's no long-term-debt tag, we show —.

FCF = operating cash flow − CapEx

Based on the last year (4 quarters summed). Uses the NetCashProvidedByUsedInOperatingActivities − PaymentsToAcquirePropertyPlantAndEquipment tags. Positive = surplus, negative = deficit, shown in $B.

Net margin = net income ÷ revenue × 100

Based on the most recent quarter. Used in internal investor-checklist calculations.

ROA = annual net income (TTM) ÷ total assets × 100

The denominator uses total assets at the most recent quarter-end.

Current ratio = current assets ÷ current liabilities

Based on the most recent quarter-end balance sheet. Above 1 means short-term obligations are covered.

Revenue growth = (this quarter's revenue − year-ago revenue) ÷ year-ago revenue × 100

If there's no year-ago data, we show —. This is one of the items that most often shows — in the checklist.

EPS growth = (this quarter's EPS − year-ago EPS) ÷ |year-ago EPS| × 100

Shows — if there's no year-ago data or year-ago EPS is 0.

P/B = current price ÷ BVPS
BVPS = stockholders’ equity ÷ shares outstanding (basic)

We look for the BookValuePerShareBasic tag in SEC EDGAR, and if missing, compute equity ÷ shares outstanding. Some financials, ETFs, and foreign companies have no BVPS and show —.

Market cap = current price × shares outstanding

Shares outstanding from SEC EDGAR; price from the Massive API snapshot.

FCF conversion = FCF (operating cash flow − CapEx) ÷ net income (trailing 4 quarters)

How much of book profit actually arrives as cash. Verdict: 60% or more = above benchmark · below = needs review · negative = below benchmark. At least 60% of net income should remain as cash to leave room for dividends, investment and debt repayment.

SBC intensity = stock-based compensation (ShareBasedCompensation) ÷ net income

The share of profit made up of stock granted to staff instead of cash (a non-cash expense). Verdict: 30% or less = above benchmark · above = needs review. Above a third of net income means a large part of profit is propped up by a non-cash expense. If the company does not disclose it, we show ‘not disclosed’.

Net debt ÷ EBITDA
Net debt = total borrowings (short + long term) − cash & equivalents
EBITDA = operating income + D&A

Roughly how many years of earnings power it would take to repay debt. Verdict: 3x or less = above benchmark · 3–4x = needs review · above 4x = below benchmark · net cash counts as above benchmark. Credit and lending practice generally treats up to 3x as manageable and above 4x as a burden.

Accruals ratio = (net income − operating cash flow) ÷ total assets

How large the gap between book profit and actual cash is relative to assets (the larger, the more earnings quality is in question). Verdict: 10% or less = above benchmark · above = needs review. Research (Sloan, 1996) finds that when the gap exceeds 10% of assets, profit is more likely inflated.

ROIC = after-tax operating profit (NOPAT) ÷ invested capital
NOPAT = operating income × (1 − effective tax rate)
Invested capital = total debt + equity − cash & equivalents

How much the company earns on the capital it puts to work — exceeding the cost of capital (roughly 8–10%) creates value. Verdict: above 15% = above benchmark · 8–15% = near benchmark · below 8% = below benchmark. The effective tax rate is tax expense ÷ pretax income; when it cannot be computed, the US corporate rate of 21% is the default.

Buyback spending (PaymentsForRepurchaseOfCommonStock, TTM)
+ change in shares outstanding (YoY)

We look at buyback spending together with the change in shares outstanding. When buybacks come with a falling share count, each share represents a larger claim. Verdict: a buyback accompanied by a falling share count = above benchmark.

Gross margin = gross profit ÷ revenue
Cost of sales · R&D · SG&A each ÷ revenue (%, TTM)

Shows, as shares of revenue, how much cost of sales, R&D and SG&A take before operating income is left. Computed from the GrossProfit · CostOfRevenue · ResearchAndDevelopmentExpense · SellingGeneralAndAdministrativeExpense tags, summed over the last 4 quarters.

Interest coverage = operating income ÷ interest expense (TTM)

How many times operating income covers interest (the higher, the lighter the interest burden). Hidden when there is no debt/interest expense (debt-free); shown as ‘operating loss’ when operating income is negative. A status description, not a prescription.

Inventory growth (YoY) vs revenue growth (YoY)

When inventory (InventoryNet) piles up faster than revenue, it can signal slowing demand. Described conditionally as ‘faster than / similar to / slower than revenue’; hidden for industries without inventory (services, financials, etc.).

Period-end receivables (AccountsReceivableNetCurrent) ÷ quarterly revenue

When receivables rise relative to revenue, it can signal slower cash collection. We factually describe slowing/improving collection from the quarterly ratio trend (only for companies that disclose receivables).

Net cash change ≈ operating + investing + financing (+ FX·other)

Net change uses the CashCashEquivalents…PeriodIncreaseDecrease tag first, and the difference from the three-way sum is shown as ‘other · FX’.

We break financing/investing outflows into line items: buybacks · dividends · CapEx · acquisitions (M&A) · debt repayment · debt issuance. Synonym tags that differ by company are merged across quarters for a seamless sum.

When cash falls, if operations are still generating cash (CFO positive) we describe it as a decline from investment/shareholder returns, not a deficit; if cash is also leaving operations (CFO negative), as covering the gap by drawing down cash and borrowing capacity. A status description, not a conclusion.

Annual dividend = sum of the latest N paid regular dividends (N = payouts per year) · Yield = annual dividend ÷ current price

CAGR = (current annual dividend ÷ annual dividend N years ago)^(1/N) − 1

The figure N years ago is computed as of that date — dividends not yet paid then are excluded, so the two sides are comparable. Past amounts are adjusted for stock splits (without this, a 3-for-1 split makes a rising dividend look like a cut), and special dividends are excluded. If either side is not a normal full-cycle year (payouts stopped, history too short, or the payout frequency changed), no figure is shown.

The sector median chip is the median 5-year growth of dividend-paying stocks among that sector's sample (up to 15 stocks), shown only when at least 6 of them qualify — sectors where few companies pay dividends show nothing rather than a thin number. These are records of what already happened, not forecasts or suggested values.

ROE, operating margin and debt ratio use sector-relative thresholds (falling back to absolute lines where no sector benchmark exists); the rest (PER, revenue growth, payout ratio, receivables, etc.) use conservative absolute lines. All descriptions are factual diagnoses, not buy/sell recommendations.

Operating margin (quarterly) = operating income ÷ revenue × 100
Revenue growth = year-over-year (YoY)
Compare = median of last N quarters vs prior N (N=3 if ≥6 data points, else N=2)

Not shown with fewer than 4 quarters of history. All are factual diagnoses, not buy/sell recommendations.

Quarterly revenue·EPS YoY·QoQ
+ next-trading-day price move (%)

Shows how each quarter’s revenue·EPS changed vs a year ago and the prior quarter, alongside the ±% close on the next trading day after the filing. The release date uses the SEC filing date (filed); prices use daily market data. Not vs consensus — an honest proxy for ‘how the market reacted to that result’.

RPO = RevenueRemainingPerformanceObligation (ASC 606)
year-over-year (YoY)

The remainder contracted but not yet recognized as revenue — a signal of leading demand (order backlog). Unlike guidance, it is structured XBRL-disclosed data, so we read it as-is without estimation or hallucination. Shown only for disclosing industries (SaaS, subscription, long-term contracts, defense, etc.); hidden otherwise (an honest blank).

We only show companies where the extracted segment revenues sum to XBRL total revenue (cross-check passed). If the structure is unusual or extraction is unstable and the check fails, we do not force it and show ‘in preparation’ — an honest blank over a wrong number. A single wrong number would collapse our core value of ‘verified numbers’.

We synthesize the validated segments by weight and YoY change and comment (AI commentary) on the largest segment’s weight (concentration) and the segment that mainly drove recent growth. It gives a conclusion rather than a bare list of weights — descriptive, not a buy/sell recommendation. Companies that disclose only by region are noted as ‘segments not disclosed’.

From the SEC 10-K original we locate the span from Item 1A Risk Factors to Item 1B, and split the risk subheadings the company sets in bold into items. Since we recognize them by bold-text pattern without per-company hardcoding, some companies that do not bold subheadings or attach the body as a separate exhibit are honestly shown as cannot compare (no forced result).

Token Jaccard similarity ≥ 0.5  →  wording revision of the same risk
other remaining items  →  genuine addition or removal

We normalize both filings’ items; exact matches are excluded as common (no change), and among the rest, items sharing more than half their words (Jaccard ≥ 0.5) are wording revisions of the same risk, otherwise genuine additions/removals. Exact match alone would catch minor wording tweaks as both add and remove (noise), so the similarity judgment is key.

From the earnings 8-K (Item 2.02) press release (EX-99.1) we find the list of Adjusted/non-GAAP metrics, the add-back items, and whether stock-based compensation (SBC) is excluded. If there are no Adjusted metrics (a GAAP-only company), the card is hidden to avoid false positives from a word that happens to appear in the text.

It reuses conclusions each layer already computed, so there is no extra computation or external call. Conclusions are classified as caution · solid · reference, with caution items sorted first, and each shows which analysis it came from. The card is hidden when nothing applies. All are factual summaries, not buy/sell recommendations.

Assumes EPS grows at a steady annual rate for 10 years, then discounts future earnings to present value and sums them.

DCF = Σ(EPS × (1+g)ⁱ / (1+r)ⁱ) + EPS × (1+g)¹⁰ × terminal P/E / (1+r)¹⁰
(i = 1 ~ 10)

The DCF section is not shown when EPS is negative or absent.

★ This is a simple model driven by EPS alone. It differs from a rigorous enterprise DCF that accounts for free cash flow, capital structure, and debt. The result is not a target or fair price — it is just the arithmetic of the assumptions you entered, and it moves a lot when those assumptions change. Drag the sliders to see the range yourself.

See how multiples change as you vary the assumed price. If a median of same-sector constituents (real data) exists, we judge vs that sector median (below 0.85x low · above 1.2x high); otherwise we fall back to absolute lines. We also show which basis is used (transparency).

PER = price ÷ EPS(TTM)
EV/EBITDA = (market cap + net debt) ÷ (operating income + D&A)
PSR = market cap ÷ revenue(TTM)
Net debt = total borrowings (short+long) − cash & equivalents

Losses (EPS≤0), EBITDA≤0 and local currency (IFRS) show the multiple as “cannot assess”. ‘What this price implies’ describes where the assumed price sits vs the current price and what that multiple presupposes (free). Not a buy/sell recommendation.

RSI = 100 - (100 / (1 + RS))
RS = average gain / average loss  (14-day, Wilder method)

70 or above means recent gains have been large; 30 or below, recent losses — a calculation, not a trading judgment.

MACD line = EMA(12) - EMA(26)
Signal line = EMA(MACD, 9)
Histogram = MACD - Signal

MACD crossing above the signal line means recent upward momentum has strengthened relative to downward; crossing below, the reverse — a calculation, not a trading judgment.

SMA(n) = arithmetic mean of the last n daily closes

Shows 20/50/200-day SMAs. A price above the 200-day line is a long-term uptrend.

Upper = SMA(20) + 2σ  /  Lower = SMA(20) - 2σ

Touching the lower band means price moved below its usual range; the upper band, above it — a calculation, not a trading judgment.