Fundamental Analysis

11 sept.

This indicator compiles a wide range of essential financial metrics directly onto your chart, providing a quick and easy reference to the financial condition of any listed company. Instead of diving into lengthy financial reports, you get an at-a-glance overview of the most critical financial ratios and figures.

Key Metrics Included:

1. Interest Coverage Ratio: Helps assess a company’s ability to pay interest on its debt. Higher values suggest greater financial stability and lower default risk.
   
2. Gross Profit Margin: Shows how much profit a company makes after covering its production costs. A higher margin indicates better efficiency and profitability in managing costs.
   
3. Dividend Yield: Reflects the annual dividend payout as a percentage of the current stock price. A moderate dividend yield may indicate a balance between income generation and growth potential.
   
4. Enterprise Value (EV): A comprehensive measure of a company's total value, including debt. Useful for comparing companies with different capital structures.
   
5. Free Cash Flow to Equity (FCFE): Reveals how much cash is available to shareholders after accounting for capital expenditures and debt repayments, indicating the company’s ability to reward investors.
   
6. Price-to-Book Ratio (P/B): Compares a company's market value to its book value. Lower values might indicate undervaluation, while higher values can suggest overvaluation.
   
7. Price-to-Cash Flow Ratio (P/CF): Helps identify companies that generate a significant amount of cash relative to their price, a key metric for assessing liquidity and sustainability.
   
8. Price-to-Free Cash Flow Ratio: Shows how much investors are paying for the company's free cash flow, which is crucial for assessing value, especially in capital-intensive sectors.
   
9. Price Earnings Ratio (P/E): The classic metric for valuing a company based on its earnings. Useful for comparing valuations across companies and industries.
   
10. Debt-to-Equity Ratio: Indicates the proportion of company financing that comes from debt and equity. A lower ratio typically signifies a less risky investment.
    
11. Return on Equity (ROE): Measures how effectively a company uses equity capital to generate profit. A higher ROE can indicate a profitable, well-managed company.
    
12. Quick Ratio: Assesses a company’s short-term liquidity by comparing its liquid assets to its current liabilities. Higher values indicate better liquidity.
    
14. Operating Margin: Reflects the percentage of revenue left after covering operating expenses. Higher margins suggest greater operational efficiency.
    

How to Use This Indicator:

Use this indicator as part of your due diligence when analyzing potential investments. Each metric is color-coded to quickly highlight whether the value is within a favorable range, making it easy to identify strong or weak aspects of a company’s financial position.

Green indicates favorable metrics, suggesting financial strength or value.
Red highlights areas of concern, pointing to potential risks or weaknesses.
This tool can help you compare different companies, spot trends over time, and make more informed decisions based on solid financial analysis. Whether you’re a value investor looking for undervalued stocks, a dividend seeker searching for sustainable payouts, or a growth investor focused on profitability and efficiency, this indicator can be tailored to your strategy.