Tag
fundamental analysis
Articles on fundamental analysis - plain-English guides from the MoatMint knowledge base.
8 articles
What does a "Good Buy" rating mean?Next to a stock's 0-to-10 score, MoatMint prints a plain-English word: Great, Good, Neutral, Fair or Poor. On a stock's profile page, a short "Is this stock a good buy?" verdict, Yes, Hold or No, does the same job one level up, in a single sentence. Both are aQuality & Compounders · 5 min readHow the MoatMint Rating WorksThe MoatMint rating scores a stock from 0 to 10 across five pillars: quality, value, growth, momentum and financial health. It is a systematic stock rating system: it runs the same rules on every company. That differs from a stock rating written by a single anQuality & Compounders · 5 min readHow to Check a Company's Financial HealthA company's financial health is its ability to meet its obligations and keep operating through a downturn. That is a different question from whether it is currently profitable. To determine the financial health of a company, investors have checked the same hanQuality & Compounders · 8 min readWhat Is a Growth Stock? Growth Investing ExplainedA growth stock is a company whose sales and earnings are increasing faster than the market average. These companies typically reinvest that growth instead of paying it out as dividends. A retailer opening new stores, a software company adding customers, a drugQuality & Compounders · 6 min readWhat Is Invested Capital and How Do You Calculate It?Invested capital is the total debt and equity a company actually puts to work in its operations. It is the denominator of return on invested capital (ROIC), the base a business earns its returns on.
The base deserves more care than it usually gets. ROIC divideReturns on Capital · 5 min readReturn on Capital Employed (ROCE): Formula and What It Tells YouReturn on capital employed (ROCE) measures how much pre-tax operating profit a company earns on all the long-term capital it uses - debt and equity together. The formula is EBIT divided by capital employed, where capital employed is total assets minus current Returns on Capital · 6 min readROE vs ROIC vs ROCE vs ROA: Which Return Metric Actually MattersROE, ROIC, ROCE and ROA all measure the same broad thing: how much profit a company earns on the money it needs to invest. But each uses a different pool of capital. That single difference is why the same company can look brilliant on one metric and ordinary oReturns on Capital · 8 min readWhat Is a Stock Rating?A stock rating condenses a company's fundamentals and its stock's behavior into a single score, so you can compare many companies at a glance.
Ratings come in two kinds: analyst ratings written by people, and quantitative ratings built by a model. MoatMint's iQuality & Compounders · 5 min read