Quality Rank

Basics

Name

Ticker

Stockopedia groups companies not just by industry, sector, country, region and size but also by its own proprietary factor and volatility classifications. The StockRanks Styles label a company according to how it stacks up using the Quality, Value and Momentum Ranks, while the Risk Ratings sort markets into quintiles according to a measure of normalised three-year volatility.

Classification

Sector

Industry Grp

Risk Rating

Size Group

StockRank Style

Country

Region

Dates

Annual Result Date

Interim Result Date

Investability

ISA Eligible

Stockopedia includes information on where a company's shares are listed, including its index membership, primary listing, exchange and exchange segment.

Trading Information

Indices

Primary List

Exchange Sgmnt

Exchange

Flag

The Company Profile section includes information on identifying characteristics such as the company's name, its stock market ticker, which sectors and industry groups it operates in, who the directors are etc. Stockopedia also provides a range of data about how and where the company trades.

Profile

The Intraday Prices section of the quote includes the current market around the stock. Fields included are the last, bid, ask, mid and volume of the stock.

Prices

Last Price

Volume

Dividend Rate

Yield

This sub-section has the nominal price change for a security since the previous day's close both in currency and percentage terms.

Change

% Change

Change (1 Week)

% Change (1 Week)

Trade time looks at the date and time at which the last trade of a stock on its stock exchange was reported.

Time

Trade Date

Trade Time

The following fields display a stock's daily opening and closing price, as well as its intra-day high and low. These provide measures of the range of trading through the day.

OHLC

Open

High

Close

The Price Quotes category contains technical information to do with the intraday share price of a stock, including its bid-offer spread, volume and daily changes. Also included in this category is data relating to opening and closing prices, as well as the dates, times and size of trades.

Quotes

Our measures of the Scale of a company include a company's market capitalisation (market cap), its enterprise value (which makes companies with different capital profiles more comparable by adding net debt to market cap) and total sales.

Scale

Mkt Cap

Sales

Measures of the tradability of a company's shares help investors make appropriate decisions to ensure they can execute their trade sizes successfully. Stockopedia includes information on the total shares outstanding of a company, the percentage of those that are listed and available for trading on a stock exchange (percentage free float), and the bid-ask spread of those shares.

Tradability

Spread

Shares Out

Free Float

The size of a company affects its riskiness, liquidity and growth potential. Stockopedia provides information on the scale of an enterprise by reporting its market capitalisation and enterprise value, while the 'Tradability' section helps investors assess how expensive it is to deal in a company's shares and how easy it is to take or exit a position.

Size

There are two Composite StockRanks which combine 3 or more of the basic Quality, Value, Momentum and Growth Ranks. The StockRank - which rates companies according to an equally weighted combination of the ValueRank, GrowthRank and MomentumRank, and the QVGM Rank - which adds the growth factor into the mix.

Composites

Stock Rank™

QVGM Rank

The three Crossover StockRanks blend the basic Quality, Value and Momentum StockRanks in various ways. They are: the QV Rank - which blends the Quality Rank and Value Rank, the VM Rank - which blends the Value Rank and Momentum Rank, and the QM Rank - which blends the Quality Rank and Momentum Rank. Each of these crossover ranks are designed to take advantage of powerful investing factors.

Crossovers

QV Rank

VM Rank

QM Rank

GM Rank

There are four Solo Stock Ranks: the Quality Rank - which prioritises profitable, cash generative, high margin, low debt businesses, the Value Rank - which identifies cheap stocks according to a range of measures, the Momentum Rank - which looks at stocks hitting new highs with earnings upgrades, and the Growth Rank - which focuses on a blend of historic and forecast earnings and sales growth ratios.

Solos

Value Rank

Momentum Rank

Growth Rank

Stockopedia's proprietary StockRanks™ are designed to assess stocks using the principles of factor-investing. We use a multi-factor approach to create rankings across quality, value and momentum. Our basic ranks are the QualityRank, ValueRank &amp; MomentumRank which are then combined in various ways into composites. We provide a range of combinations of these basic rankings as crossover ranks and composite ranks.

StockRanks

Stockopedia's Quality Rankings are a unique way of assessing a company's overall profitability, stability and financial trend. These standardised fields allow an easier comparability between peers. The Quality Rank and its relations, the QV Rank (Quality + Value) and QM Rank (Quality + Momentum) classify enterprises according to the strength of their company franchise (profit margins &amp; cash generation), company risk (bankruptcy risk &amp; volatility) and financial health (Piotroski F-Score).

Quality Rankings

Profitability Ratios measure how effectively a company turns its capital (equity or assets) into earnings and free cashflow. Profitability metrics that we list at Stockopedia include the Return on Equity, Return on Capital Employed, and Return on Assets amongst others.

Profitability

ROCE

ROC Greenblatt

CFROA

ROIC

FCF / Sales

FCF LT / Assets

CROIC

Asset Turnover

Recs Turnover

Inv Turnover

Profit Margins - including the Gross Profit Margin, Operating Profit Margin, and Net Profit Margin - are important indicators of a company's overall profitability. A company that makes higher margins than its peers has a competitive advantage over its rivals as it has more money to reinvest or return to stakeholders.

Margins

Gross Mgn

Op Mgn

Net Mgn

Liquidity ratios are used to assess a company's ability to pay off current debt obligations with liquid assets. The most widely used liquidity measure - the current ratio - is found here, as is the cash conversion cycle and amount of interest cover.

Liquidity

Current Ratio

Interest Cover

Cash / Assets

Quick Ratio

Cash Conversion Cycle

Solvency Ratios focus on a company's ability to fund its long-term financial obligations. Stockopedia shows this with a couple of different Debt to Assets and Debt to Equity measures. Also listed here are some famous composite financial health gauges including the Altman Z2-Score, the Beneish M-Score, and the Montier C-Score.

Solvency

Net Gearing

FCF / LT Debt

Altman Z-Score

Net Gearing ex Intan

LT Debt / Equity

Altman Z2-Score

Gross Gearing

Assets / Equity

Gross Gearing ex Intan

Gross Gearing including Pension

Debt / Assets

Net Gearing including Pension

LT Debt / Assets

Cash to Assets including Pension

LT Debt / Avg Assets

Net Debt / Assets

Pension Dfct / Mkt Cap

Net Debt / Tang Assets

Pension Deficit

Tang Assets / Equity

Many frauds report consecutive quarters of earnings growth before abruptly going bankrupt. Earnings Quality Ratios can help to identify such stocks before disaster strikes. Metrics such as the Accrual Ratio, the Beneish M-Score and the Montier C-Score are a good way to spot red flags and potential earnings manipulation.

Earnings Quality

Accrual Ratio

Beneish M-Score

Montier C-Score

The Financial Health Trend of a company is an important leading indicator of future stock performance. Stockopedia lists the Piotroski F-Score as the primary financial health trend indicator. The F score itself is composed of nine criteria and conveys a lot of information at a glance. The F-Score was created to identify companies with improving financial positions and takes into account cash generation, profitability, indebtedness, productivity, and pricing power.

Trend

Piotroski F-Score

Share Dilution is an important aspect of investment to track but can easily be ignored in the face of more obvious trends such as sales growth. In general less dilutive companies have been shown to be stronger investments over the longer term. Stockopedia lists the percentage change in diluted average shares outstanding, which looks at the year-on-year change in a firm's weighted average number of shares and shows the impact of rights issues, share placings, and share buybacks.

Dilution

Share Dilution

Equity Funding

Research and Development costs are useful for seeing how much a company is investing into its future prospects. Stockopedia tracks growth in Research and Development spending over the last 12 month period, as well as R&amp;D divided by assets and R&amp;D divided by sales.

R&D / Sales

R&D / Assets

R&D Growth

Quality Ratios allow an investor to understand the profitability of a company and its ability to defend its competitive operating advantages over time. Basic economics dictates that if one company identifies a profitable niche with low barriers to entry, it will attract competitors that take market share by whittling away at profit margins (i.e. undercutting on price) over time. High quality companies often have brands or proprietary technology that give them strong pricing power and a market-leading position. Stockopedia provides a range of Quality factors across profitability, margins, efficiency, liquidity and more.

Quality

The Value Rankings are Stockopedia's proprietary approach to measuring the value of stocks. Stockopedia's Value Rank is based on an equal weighted blend of traditional value ratios including the P/B, P/E, P/S, P/FCF, Earnings Yield and Dividend Yield. The QV Rank (Quality + Value) and VM Rank (Value + Momentum) are equally weighted combinations of Stockopedia's Quality and Value Ranks and Value and Momentum Ranks respectively.

Value Rankings

The Price to Income Ratios section contains some of the most commonly used valuation multiples and measures that compare a company's share price against common measures of earnings. These include the price to earnings ratio (P/E ratio), the price to sales ratio (P/S ratio) and the PEG ratio and its variants. The cyclically adjusted price to earnings ratio (CAPE) or Shiller P/E is a popular long run valuation ratio that divides the share price by the average of the past 10 years' earnings data.

vs Income

P / E

P / S

CAPE

PEGY

PEGR

P / R

P / PTE

Price to Cashflow Ratios allow a comparison of a company's valuation against is ability to generate cash. Stockopedia lists price to free cashflow (P/FCF), price to operating cashflow (P/CFO) and price to cash flow growth (P/CF Growth), which is similar to the PEG ratio. The operating cashflow yield (OCF yield) is similar to the earnings yield but strips out non-cash income and expenses and certain one-off items.

vs Cashflow

P / FCF

P / OCF

P / CF Growth

OCF Yield

This following Price to Assets ratios compare a company's share price against a range of its tangible assets. These include price to book (P/B), price to net current asset value (P/NCAV) and price to net cash/debt.

vs Assets

P / B

P / NCAV

P / TB

P / NNWC

P / Net Debt

P / Cash

P / Net Cash

P / Cash Net Burn

P / Cash Net of Current Liabs

Net Debt / Price

These Enterprise Value Ratios allow investors to compare the total valuation of a company's enterprise (including the market value of its stock and its net debt) to a variety of fundamental measures. This allows companies with different capital structures to be compared. The Earnings Yield is a measure of how much a company earns relative to its Enterprise Value, while EV/EBIT, EV, EBITDA, EV/Sales and EV/FCF are all widely-used relative valuation multiples.

vs Enterprise

Earnings Yield

EV / EBIT

EV / EBITDA

EV / Sales

EV / FCF

The Guru Valuation category of metrics contains several measures of value - two inspired by the "father of value investing" Benjamin Graham (The Graham Multiplier and the Graham Deep Value Score) and one from Joel Greenblatt (The Magic Formula, taken from his bestselling book "The Little Book That Beats The Market").

Guru Valuation

Magic Formula Score

Graham Multiplier

Graham Deep Value Score

Valuation Ratios provide a means to compare the price of a company's shares against some measure of fundamental value (for example earnings, sales or assets). These ratios are useful rules of thumb for comparing companies against their peer groups to assess their relative cheapness. Stockopedia includes a range of price &amp; enterprise value based ratios in both standard ratio and inverted yield formats.

Value

The Momentum Rankings are Stockopedia's ranking system based on a blend of price momentum and earnings momentum indicators. The QM Rank (Quality + Momentum) and VM Rank (Value + Momentum) are equally weighted combinations of Stockopedia's Quality and Momentum Ranks and Value and Momentum Ranks respectively.

Momentum Rankings

This section contains Price and Volume data including the closing prices of shares, their three-month average volume, and their 10d / 3m volume ratio.

Price & Volume

Close Price

Avg Volume

10d / 3m Volume

This section contains Relative Price Strength measures such as its share price performance relative to its benchmark index over multiple timeframes, and its Absolute Share Price Strength similarly. We also provide longer term compound annual growth rates.

Price Strength

Price History

Rel Strength

Price Chg

Price CAGR

Moving Averages are popular indicators in technical analysis that aim to filter out the 'noise' of short-term share price fluctuations in order to better see longer-term directions of trend &amp; reversal. As well as the 200-day moving average, Stockopedia also looks at Price vs. 50-day MA and 50-day MA / 200-day MA.

Moving Averages

Momentum is a powerful predictive factor for future share price returns. As traders like to say, 'the trend is your friend'. The following section contains information on a variety of indicators, including: recent share price highs and lows, moving averages across periods of time, relative strength indicators and the Momentum Rank. You can also find the average volumes of shares traded &amp; share price volatility

Momentum

Ticker	Name	Quality Rank	StockRank™
LON:POLR	Polar Capital Holdings	100	96
LON:FSG	Foresight group	100	79
LON:VIC	Victorian Plumbing	100	80
LON:TRCS	Tracsis	100	72
LON:REC	Record	100	82

Stockopedia Quality Rank

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Stockopedia explains Quality Rank

The 5 highest Quality Rank Stocks in the Market

Variants of Quality Rank

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