The purpose of this section is to give you a comprehensive analysis of the stock.
The idea is to use data-derived insights to provide actionable recommendations. Accordingly, we’ve broken it into 6 sub-sections (as marked with the red line below).
The first sub-section, Summary Recommendation gives you a bird eye view of the attractiveness of the stock.
We look at 4 key parameters – Our own StyleBox classification and QVM score. We also provide a summary of analyst recommendations and technical indicators.
The next sub-section is Ratio & Statistics
In this, you get a bird’s eye view into the key ratios and statistics important to measure a stock’s performance. You can change the tabs (as seen in the yellow box). Also, you can view historical charts along with historical average data by clicking on the chart icon.
The next sub-section is Key talking points.
It’s more of a summarization of some key talking points about the company that you, as an investor, should be aware of. We split the talking points into Positive, Negative, and Neutral buckets.
Then we have Style Analysis.
This section provides an intuitive visual representation of a stock’s QVM score, price momentum, quality, and value.
You can check stock scores with respect to the entire market or with respect to the sector, industry group, or industry.
Next, we have the ‘Scorecard’.
This is a great way to compare and visualize a stock’s ranking across multiple metrics.
Users can see the stock’s ranking with respect to the entire market, or with respect to the sector, industry group, or industry.
The scorecard offers multiple options to compare the stocks and each of these options are arranged into 6 columns:
The first column is the name of the metric. Users can read more about that particular metric by clicking on the name.
The second column is the Metric value. This will contain the actual absolute value for that metric. For example, if the metric is the P/E ratio, this column will have the actual P/E of that stock.
The next 4 columns contain the rank of that stock with respect to the market, sector, industry group, and industry.
For the sake of uniformity across all metrics, ranks are normalized into scores from 0 and 100 in such a way that 0 is the worst and 100 is the best.
The green bar indicates a score above 70 (good), the orange bar indicates a score between 30 and 70 (neutral) and the red bar indicates a score below 30 (bad).
Users can also access the absolute (non-normalized) rank by hovering (or clicking) on the respective bar.
[Note: While ranking (and normalizing) the stock, wherever the metric value is not available, that stock is not considered in the ranking.]
For example, assume that there are 1800 active stocks on NSE and we are calculating the rank of Reliance Industries P/E ratio. If the P/E ratio is not available for 100 stocks (due to data availability to negative EPS), ranking and scores will be calculated using 1700 stocks. If the stock itself does not have a valid metric value, an empty grey bar will be shown.
The last sub-section is Checklists.
The checklist is a unique feature that allows you to run the stock through a pre-defined or custom set of rules. Many seasoned investors have some form of checklist they use to analyze stocks.
Our stock report comes pre-loaded with many pre-defined checklists used by legendary investors like James O'Shaughnessy, Benjamin Graham, Warren Buffet, and so on.
Using checklists, users can see how a particular stock fares on that checklist. The “hits” and “misses” lists give a quick visual representation of a stock’s performance on that checklist.
Here, you can drill deeper and check each rule in the checklist. This shows why a stock passes or fails a particular rule in the checklist.
That’s it for our Analysis section. Let's hop on to the next article.