Fundamental Analysis Articles

  1. Apple? Google? Tesla? Which Will Be The First To Reach A $1 Trillion Market Cap?

    What would it take for a company to be the first to grab the coveted $1 trillion market-cap crown?
  2. Day Trading: Impoverishing Dilettantes Since 1990

    Operating a day-trading account is like owning thoroughbreds or an America’s Cup team. You can't just enter the arena with no money.
  3. Fundamental Investment Metrics For Buying Stocks And Bonds

    Don't let the name fool you. Even a "fundamental" investor has to pay attention to certain metrics.
  4. For Individual Investors, These May Be The Best Of Times

    The raging debate on high frequency trading may lead the average retail investor to think that he/she continues to get a raw deal in the stock market. The reality is that these are probably the best of times for them.
  5. The Most Accurate Way To Gauge Returns: The Compound Annual Growth Rate

    The compound annual growth rate, or CAGR for short, represents one of the most accurate ways to calculate and determine returns for individual assets, investment portfolios and anything that can rise or fall in value over time.
  6. The 4 R's Of Investing In Retail

    In retail, successfully managing return on investment (ROI) and other financial indicators is the key to a healthy business.
  7. EDGAR: Investors' One-Stop-Shop For Company Filings

    You can learn a lot about any listed company through this system - if you know how to use it.
  8. Decoding DuPont Analysis

    Get a deeper understanding of ROE with these three-step and five-step calculations.
  9. Assess Shareholder Wealth With EPS

    Find out if management is doing its job of creating profit for investors.
  10. Understanding The Cash Conversion Cycle

    Find out how a simple calculation can help you uncover the most efficient companies.
  11. How to Value Companies With Negative Earnings

    For some investors, the possibility of stumbling upon a small biotech with a potential blockbuster drug, or a junior miner with a giant mineral discovery, makes the risk of investing in companies with negative earnings well worth taking.
  12. Financial Markets: Random, Cyclical Or Both?

    Are the markets random or cyclical? It depends on who you ask. Here, we go over both sides of the argument.
  13. Cash Flow Statement: Analyzing Cash Flow From Financing Activities

    The financing activity in the cash flow statement measures the flow of cash between a firm and its owners and creditors.
  14. Comparing The P/E, EPS And Earnings Yield

    P/E may be the established standard for valuation purposes, but the earnings yield is especially useful for comparing potential returns across different instruments.
  15. Challenges Faced When Analyzing Green Chip Stocks

    The fact that a green chip is not yet a blue chip should not alarm investors, but they need to be aware of the differences and challenges that can arise from assuming these are durable companies with sustainable competitive advantages.
  16. Cash Flow Statement: Analyzing Cash Flow From Investing Activities

    Reviewing investment activity is one of the most important exercises an individual can do to see how efficiently a company's management is using shareholder capital to run is operations.
  17. The Optimal Use Of Financial Leverage In A Corporate Capital Structure

    The amount of debt and equity that makes up a company's capital structure has many risk and return implications.
  18. Can Investors Trust The P/E Ratio?

    The P/E ratio is one of the most popular stock market ratios, but it has some serious flaws that investors should know about.
  19. The Common-Size Analysis Of Financial Statements

    Using common-size financial statements helps investors spot trends that a raw financial statement may not uncover.
  20. How To Trade The News

    Regardless of your investing horizon, learning to trade the news is an essential skill for astute portfolio management and long-term performance.
  21. The Market Value Versus Book Value

    Understanding the difference between book value and market value is a simple yet fundamentally critical component of any attempt to analyze a company for investment. After all, when you invest in a share of stock or an entire business, you want to know you are paying a sensible price.
  22. Evaluate Stock Price With Reverse-Engineering DCF

    This is a more accurate method to use when trying to find a target price for a stock.
  23. Analyzing Blue-Chip Stocks

    To find a good value on a blue-chip stocks, look for companies with strong fundamentals, appropriate levels of debt and competitive advantages.
  24. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.
  25. Cash Flow Statement: Reviewing The Cash Flow From Operations

    A company's ability to consistently generate positive cash flows from its daily business operations is highly valued by investors. Operating cash flow can uncover a company's true profitability and provide insight to its financial health.
  26. Balance Sheet: Analyzing Owners' Equity

    Analyzing owners’ equity is an important analytics tool, but it should be done in the context of other tools such as analyzing the assets and liabilities on the balance sheet.
  27. Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors debate which type of analysis - fundamental or technical - provides higher returns.
  28. Analyzing Investments With Solvency Ratios

    Solvency ratios are extremely useful in helping analyze a firm’s ability to meet its long-term obligations; but like most financial ratios, they must be used in the context of an overall company analysis.
  29. Reviewing Assets On The Balance Sheet

    A firm uses its assets to generate sales and bottom-line profits for shareholders. A healthy company will continually grow its assets, which stems from leftover profits that are reinvested back into the business.
  30. Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  31. How To Analyze The Transportation Industry

    By gaining an awareness of the transportation firms and trends that affect these players, investors can gain an edge by analyzing the sector and looking to profit from understanding it.
  32. Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use both sets to get the complete picture of a company’s financial position.
  33. An Introduction To Coverage Ratios

    Interest coverage ratios help determine a company's ability to pay down its debt.
  34. Investing In Healthcare Facilities

    Read on to learn about how to value heathcare sector stocks.
  35. Don't Let Stock Prices Fool You

    Find out why a stock with a six-figure share price can still be a good value.
  36. Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  37. Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  38. Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. Yield by definition means to give way to or produce. There are many ways to measure yield - three common ones are dividend yield, earnings yield and free cash flow yield.
  39. How To Value An Insurance Company

    In the insurance space, accurate predictions of metrics such as ROE are important, and paying a low P/B can help put the odds in investors' favor.
  40. Introduction To STRIPS

    STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how.
  41. Equity Valuation: The Comparables Approach

    The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation models: the discounted cash flow (DCF), cost and comparable approaches. The comparable model is a relative valuation approach and is explained in more detail below.
  42. Understanding Profit Metrics: Gross, Operating and Net Profits

    Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look at gross profit and operating profit as well.
  43. How To Value An Internet Stock

    An academic study, published several years after the peak of the dot-com bubble in March 2000, accurately described just how whacky internet valuations grew until the bubble burst. The study's first sentence basically stated that valuations lost touch with reality.
  44. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?
  45. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  46. Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  47. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  48. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
  49. Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
  50. Differences Between Forward P/E And Trailing P/E

    The most common types of price to earnings ratios are forward P/E and trailing P/E. Find out how they differ and the advantages and drawbacks of each.
  51. The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ensues.
  52. How To Use Price-To-Sales Ratios To Value Stocks

    Take a look at how this effective ratio can be influenced by certain critical factors.
  53. Beware False Signals From The P/E Ratio

    The P/E ratio is a simple tool for evaluating a company, but no one ratio can tell the whole story.
  54. Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  55. Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
  56. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
  57. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  58. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  59. How To Find P/E And PEG Ratios

    If these numbers have you in the dark, these easy calculations should help light the way.
  60. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.
  61. Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.
  62. Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  63. Writing Down Goodwill

    Goodwill represents an acquisition amount over and above what the purchased firm’s net assets are deemed to be valued at on the balance sheet.
  64. Do Your Investments Have Short-Term Health?

    If a company is strong enough to survive tough times, it is more likely to provide long-term value.
  65. Analyst Recommendations: Do Sell Ratings Exist?

    Analyst reports can be an investor's best friend - but without knowing how to read them, you won't be able to fully utilize them.
  66. Spotting Profitability With ROCE

    This straightforward ratio measures whether a company is efficient, money-making or neither.
  67. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  68. Triangles: A Short Study In Continuation Patterns

    Learn how to read these formations of horizontal trading patterns.
  69. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  70. Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  71. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  72. Using Enterprise Value To Compare Companies

    Learn how enterprise value can help investors compare companies with different capital structures.
  73. Securitizing Your Health With ACOs

    ACOs have the components required to securitize. Can your health become an instrument that can be traded?
  74. Evaluating Retained Earnings: What Gets Kept Counts

    A company's retained earnings matter. Be investment-savvy and learn how to analyze this often overlooked information.
  75. Analyze Investments Quickly With Ratios

    Make informed decisions about your investments with these easy equations.
  76. Analyzing A Bank's Financial Statements

    A careful review of a bank's financial statements can help you identify key factors in a potential investment.
  77. Useful Balance Sheet Metrics

    These metrics can help you better understand the information found on balance sheets.
  78. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  79. Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
  80. DCF Valuation: The Stock Market Sanity Check

    Calculate whether the market is paying too much for a particular stock.
  81. Evaluating A Statement Of Cash Flows

    The metrics for the Statement of Cash Flows is best viewed over time.
  82. 3 Industry-Impacting Innovations On The Horizon

    Here are some industry-impacting innovations that could potentially belong in the famed Carousel of Progress.
  83. The Importance Of Other Comprehensive Income

    Understanding and analyzing OCI greatly improves financial analysis, especially for financial companies.
  84. A Primer On Investing In The Tech Industry

    The tech sector can provide fantastic returns for investors with a little know-how in the field.
  85. Can Good News Be A Signal To Sell?

    Sometimes positive announcements can mean bad news for a stock. Find out why.
  86. How To Evaluate A Micro-Cap Company

    Learn how to think big by investing in smaller stocks.
  87. Trading Failed Breaks

    Learn how to capitalize on the predictable behavior of others during breakouts and breakdowns.
  88. 3 Great Business Battles

    Here are some U.S. companies that have historically competed with one another for market supremacy.
  89. The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  90. What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  91. The Daily Routine Of A Swing Trader

    From pre-market to after hours, see what you need to do to capture gains quickly.
  92. Helium: An Uplifting Commodity

    Helium is a non-renewable resource in an industry dominated by an unusual infrastructure.
  93. Take On Risk With A Margin of Safety

    More common risk theories can lead to missed opportunities. Find out how margin of safety can propel your portfolio.
  94. What Is The Intrinsic Value Of A Stock?

    Intrinsic value reduces the subjective perception of a stock's value by analyzing its fundamentals.
  95. Financial Models You Can Create With Excel

    The relatively modest amount of time it takes to build these models can pay for itself by leading you to better investment decisions.
  96. What Dividends Say About Stock Health

    Dividend payments may reveal information about the future prospects of a company.
  97. Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.
  98. Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  99. Why There Are Few Sell Ratings On Wall Street

    We outline reasons that may show why enforcing more sell ratings isn't guaranteed to increase Wall Street's objectivity.
  100. Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
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