Fundamental analysis

Fundamental analysis

What fundamental analysis is, the four things it checks in every company, and how it differs from reading price charts.

A long-term investing philosophy

Buy companies with strong growth fundamentals, hold them, and rarely sell. Why a long horizon and a few simple habits beat short-term trading.

Stocks as ownership, not symbols

A share is a slice of a real business. Thinking like an owner explains why long-term prices follow revenue, earnings and margins, not headlines.

How to research a company

A step-by-step way to research a stock: understand the business, run a SWOT, apply the double-or-halve test, then check the numbers and valuation.

The double-or-halve test

A quick way to judge risk and reward before buying a stock: compare the odds it doubles in three to five years with the odds it loses half.

Economic moats

What an economic moat is, the five main types of competitive advantage, and how to tell whether a company's moat is widening or shrinking.

Revenue growth (TTM and forward)

How to read revenue growth, the difference between trailing (TTM) and forward growth, what counts as strong, and the deceleration warning sign.

EPS growth (TTM and forward)

How to read earnings per share growth, why it can outpace revenue through operating leverage, and how buybacks can flatter it.

P/E ratio (price-to-earnings)

What the P/E ratio means, trailing versus forward P/E, what counts as high or low, and why P/E alone can mislead without growth.

PEG ratio

The PEG ratio divides the P/E by earnings growth, so it judges valuation and growth together. What the bands mean and how to use it.

Balance sheet strength: cash versus debt

Why cash above debt is the simplest safety test for a company, how to judge debt with free cash flow, and what cash buys in hard times.

Gross margin

What gross margin is, what it reveals about pricing power, typical ranges by industry, and why its trend matters as much as its level.

Net margin

Net profit margin shows how much of each sales dollar a company keeps after every cost. What counts as strong, and how to read its trend.

Operating margin

Operating margin measures profit from the core business before interest and tax. How it differs from gross and net margin and how to use it.

Free cash flow

Free cash flow is the cash a business generates after investing in itself. How it is calculated, why it can differ from earnings, and FCF yield.

Return on invested capital (ROIC)

ROIC shows how much profit a company earns on the money invested in it. Why it is the best single test of a moat, and how it compares with ROE.

Debt-to-equity ratio

The debt-to-equity ratio compares what a company owes with what its owners have put in. How to read it, typical levels, and where it misleads.

EV/EBITDA

EV/EBITDA values a whole company, debt included, against its operating cash earnings. How enterprise value works and when to use it over P/E.

Price-to-sales ratio (P/S)

The price-to-sales ratio values a company against its revenue. Why it is useful for unprofitable growth companies, and why margins matter to read it.

Price-to-book ratio (P/B)

Price-to-book compares a company's market value with its accounting net worth. Where it is useful, such as banks, and why it fails for modern companies.

Earnings per share (EPS)

What earnings per share means, basic versus diluted EPS, GAAP versus adjusted EPS, and how EPS connects profit to the share price.

Market capitalization

Market cap is the total value of a company's shares. The size categories, how market cap compares with enterprise value, and market cap versus potential.

How to read financial statements

A beginner's guide to the three financial statements, the income statement, balance sheet and cash flow statement, and how they fit together.

The income statement

How to read an income statement line by line, from revenue to earnings per share, and which lines matter most for investors.

The balance sheet

How to read a balance sheet: assets, liabilities and shareholders' equity, the checks that matter, and how to judge a company's financial health.

The cash flow statement

How to read the cash flow statement's three sections, operating, investing and financing, and why cash flow can reveal what earnings hide.

Stock screening and scoring

How to screen thousands of stocks down to a short list, and how a percentile-based scoring model ranks companies on growth, valuation and balance sheet.

Finviz screener guide

A step-by-step guide to screening for growing, fairly valued companies with the free Finviz stock screener, with suggested filters and columns.

Building a research watchlist

How to build and maintain a research watchlist on Seeking Alpha or any platform, with the columns to track and a quarterly routine to keep it useful.

Earnings reports and calls

What happens during earnings season, how to read an earnings release, what to listen for on the call, and why guidance moves stocks more than results.

Investing in IPOs

How initial public offerings work, why new stocks are often volatile, lock-up expirations, and how to judge an IPO with fundamentals instead of hype.

Market leadership cycles

Why the companies that lead one decade rarely lead the next, how sector leadership rotates, and what that means for concentration and diversification.

Hype and market sentiment

How hype, headlines and crowd emotion move stock prices away from fundamentals, and simple habits that keep your decisions grounded in the business.

Investor or trader

The difference between investing and trading, why most individuals do better as long-term owners, and how costs, taxes and time favour patience.

Growth, value and dividend investing

The three classic investing styles compared: what growth, value and dividend investors look for, the metrics each uses, and the risks of each approach.

Building your investing knowledge

A learning path for new investors, from basic ideas to reading filings, plus classic books and habits that build real skill over time.

Fundamentals checklist

A one-page checklist for researching a stock: growth, profitability, balance sheet, valuation, moat and risks, with the metric to check for each.