Colour in ShareAnalysis
ShareAnalysis’s colours are based on the principle of traffic lights: green is good, red is bad and amber implies proceed with caution.
ShareAnalysis uses colour as a visual representation of quality, performance, safety margin, growth and improvement and decline of fundamental metrics.
Historial Change in Value
Green and red topped columns
A company’s quality is rated A, B or C and represented by green, orange and red.
High quality with a low risk of default. Typical fundamentals include:
• Positive earnings
• Very low debt (net debt / equity ratio typically less than 40%)
• Plenty of cash in the bank for a rainy day
• Rarely undertake capital raisings
Adequate quality balance sheet and moderate risk of default. Typical fundamentals include:
• Positive earnings
• Geared balance sheet (net debt/equity ratio typically more than 40%)
• Some cash in the bank
• May undertake capital raisings
Poor quality balance sheet and a high risk of default. Typical fundamentals include:
• Very low or negative earnings
• High debt (net debt/equity typically more than 50%)
• Poor cash flows
A company’s performance is rated 1 through 5 and represented by green, orange and red.
Excellent performance characterised by:
• Positive and rising earnings
• Positive and rising dividends
• Strong and rising return on equity (above 15%)
• Strong and rising cash flows
Good performance characterised by:
• Positive and rising earnings
• Positive and rising dividends
• Strong but stable return on equity
• Strong but stable cash flows
Average performance characterised by:
• Positive but declining earnings
• Average but flat or declining return on equity (around 10%)
• Declining cash flows
Poor performance characterised by:
• Stable or declining earnings
• Flat or declining return on equity
• Poor cash flows
Very poor performance characterised by:
• Negative earnings
• Poor and declining or negative return on equity
• Poor cash flows
The ShareAnalysis Score combines the Quality Score and Performance Score.
Colour on the Aerial View and Value vs Price chart
What it means
Excellent quality balance sheet and top notch business performance. ShareAnalysis’s preferred scores.
Adequate quality balance sheet and top notch business performance. Also ShareAnalysis’s preferred scores.
A3, A4, A5
Excellent quality balance sheet and average, poor or very poor business performance. These companies aren’t at risk of going broke, but historically they haven’t shot the lights out either.
B3, B4, B5
Adequate quality balance sheet and average, poor or very poor business performance. These stocks could go either way, however historically their performance has been less than desirable.
C1, C2, C3, C4, C5
Poor quality balance sheet. Regardless of their economic performance, these businesses are considered high risk.
Safety Margin is the difference between ShareAnalysis’s current intrinsic value and the market price. It represents the discount (or premium) of a company’s share price relative to the intrinsic value calculated by ShareAnalysis.
The Safety Margin may change daily as share prices move and/or ShareAnalysis’s intrinsic value estimate changes.
What it means
Share price is less than ShareAnalysis’s forecast year 1 value estimate
Share price is more than ShareAnalysis’s forecast year 1 value estimate
No Safety Margin (due to zero value)
Historical Change in Value is the percentage of annual growth (or decline) in value for a company. Its calculated annually, following the release of a company’s annual results.
Historical per annum growth > 15%. Column is full height with green top.
Historical per annum growth > 5%. Column is half height with orange top.
Historical per annum growth < 5%. Column is low height with red top.
On a company’s Earnings and Dividends Evaluate screens:
• A green-topped columns indicate a metric, such as earnings or dividends, has improved since the previous corresponding period.
• A red-topped column indicates a decline.
Data in ShareAnalysis
Fundamental and forecast data is crunched through ShareAnalysis, automatically and every day.
ShareAnalysis’s automated engine interprets key financials and forecasts into image-rich visuals.
The application is entirely automated and updated daily using information sourced from top-tier financial institutions. Every night more than 120 pieces of data for every company, for each financial year, is run through over 730 calculations.
Pricing data in ShareAnalysis is as at the previous day’s market close.
Historical fundamental data
Historical fundamental data is added to ShareAnalysis up to four times a year, when company’s release interim and annual results. ShareAnalysis Scores are derived from historical fundamental data.
In Australia, most companies release their interim results in February and full year results in August.
Here’s how company results flow through ShareAnalysis during reporting seasons.
Step 1. Company releases results
In Australia, companies are required to lodge their accounts twice a year. Full year financials are known as Appendix 4E and half year or interim results as Appendix 4D. Results announcements are generally classified as price sensitive.
They’re available at asx.com.au (or the equivalent exchange) and can usually be found in the Corporate/Investor section of the company’s website. Within ShareAnalysis, you can access announcements on the News tab of Fast Facts or at the bottom of the company’s Summary Evaluate screen.
Step 2. ShareAnalysis’s data provider, S&P Capital IQ
Upon receiving the results, Capital IQ analysts input the latest financials into a database. Capital IQ aims to input new data on the day its released to the ASX, however on particularly busy days companies with the largest market capitalisations will be prioritised over smaller cap companies.
Capital IQ database releases the latest figures to ShareAnalysis’s automated engine. From the Capital IQ website, it is clear that Capital IQ provides streaming real-time data to deep historical information nd gives the access to timely and accurate data. As Capital IQ has Capital IQ-sourced and third-party databases integrated in one flexible analytics platform, it offers standard and custom data solutions that combine global coverage, deep history, and unparalleled transparency.
Step 3. ShareAnalysis updates, every day
At around 2am each morning, Sydney time, ShareAnalysis’s automated engine pulls in the latest data for every ASX company. Hong Kong will update from 10:00pm, Singapore 11:00pm, Europe 8:30am, and London and Switzerland 9:30am Sydney time. The US and Canada will update from 2pm Sydney time for the day prior.
120 pieces of financial information for every listed business are automatically run through over 730 automated (many of them patent-pending) calculations, every day, and published to ShareAnalysis. ShareAnalysis’s Scores, intrinsic value estimates and company evaluations are completely objective. There is no human intervention.
ShareAnalysis sources up to three years of forecast data for over 500 ASX-listed companies and thousands of global stocks. Forecast data includes earnings per share, dividends per share, profit and equity figures. Theoretically, forecast data can change daily. In reality, forecasts typically change when companies release new information to the market.
Following the release of a company’s interim or full year results, which generally includes management’s outlook and guidance for the next 12 months, industry analysts covering a stock will update their forecasts estimates of earnings, dividends and profit figures. This usually occurs in the two or three weeks following the interim or full year results announcement. Here’s how new forecast data flows through ShareAnalysis:
1. Company releases earnings guidance, a half yearly report, annual report or other price-sensitive information.
2. Analysts covering the stock receive the information. They will spend time digesting the announcement. They may ring the company or arrange a meeting with its CEO and CFO to gain further insights. After undertaking further research, the analyst may update their financial model. The time between which an analyst receives information to the time they submit their revised estimates to ShareAnalysis’s data provider may be as long as five business days. Maybe they’re still on holidays!
3. The analysts’ revised estimates are submitted to ShareAnalysis’s data provider, Capital IQ.
4. Capital IQ reviews the research and figures to ensure the data is comparable to the consensus and then releases the updated data to ShareAnalysis’s automated database.
5. Every day ShareAnalysis’s automated engine pulls in a data file that contains the latest financial information, runs the necessary calculations and publishes the results to ShareAnalysis’s patent-pending interface. The Investar Research team then ensures data integrity and accurate analysis through a series of screens and observations, maintaining the quality of outputs.
If, for example, 10 analysts contribute forecasts for a company, it can take a week or so for every analyst to update their forecasts. As each analyst updates his or her EPS estimates), ShareAnalysis’s forecast intrinsic values and ‘Forecast Change in IV’ will also update. Changes to intrinsic values are tracked on a company’s Forecast Updates chart.
ShareAnalysis’s Earnings Evaluate screen displays the number of analysts covering a stock, and the minimum and maximum earnings per share estimates. Bullish and Bearish intrinsic valuations are also available on a company’s Value vs Price chart.
ShareAnalysis data source and S&P Capital IQ
The financial data in ShareAnalysis is sourced from top-tier international data providers.
Automated calculations are run daily by ShareAnalysis’s automated engine. The calculations are completely objective. There is no human intervention excluding that of data integrity operations and accuracy testing which ensure the ongoing delivery of top tier information.
ShareAnalysis does not take into account personal opinion when valuing or rating companies.
From 01 August 2019 ShareAnalysis is sourcing data from S&P Capital IQ.
Why use Capital IQ?
- Wider coverage (# of stocks increase)
- Cleaner data (more current consensus forecasts)
- Wider analyst coverage (# of stocks with forecasts increase)
- Individual company regional and business revenue information
ShareAnalysis accepts no responsibility for any errors or inaccuracies in the data contained within ShareAnalysis, however we will endeavour to resolve any errors or inaccuracies in a timely manner.
Capital IQ Data
ShareAnalysis will incorporate information from Capital IQ research products. In respect of that information please note the following notices and disclaimers from Capital IQ:
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Reporting Seasons at ShareAnalysis
Find out why February and August are the most exciting times of the year to check out stocks in ShareAnalysis!
ShareAnalysis’s historical data for ASX-listed companies – earnings, dividends, capital history (the balance sheet), cash flow, the ShareAnalysis Scores and historical intrinsic valuations – typically update every six months (a few companies report quarterly so they update every three months).
Forecast data changes when companies release market updates, or analysts change their opinion on the future earnings of a stock.
During reporting seasons, which in Australia is every February and August, the market becomes flooded with the new financial results and earnings forecasts. During this time lots of things change in ShareAnalysis, including updated ShareAnalysis Scores and new forecast valuations.
ShareAnalysis’s academically derived algorithms and powerful automation ensures every company is analysed, rated, valued and evaluated daily. Every morning during reporting season ShareAnalysis members can login and to access the latest available information about every ASX-listed company, plus thousands of global stocks.
Changes to data during full year and interim reporting season
ShareAnalysis updates in the days following the release of a company’s financial results.
Here’s a summary of the changes you can expect to see on ShareAnalysis’s company evaluation screens during the full year and interim reporting seasons.
• ShareAnalysis Summary good and bad points
• Latest Financial Results
• Interim Business Measures (ShareAnalysis Score, Cash Flow Ratio and the company’s Net Debt / Equity ratio)
• Market Measures: the forecast year will switch over to become historical and the forecast years will update. The forecast data will typically update in the two weeks following the release of the company’s full year results
Interim results: ShareAnalysis will add a new (A) Interim column to Key Business Measures and include the latest ShareAnalysis Score, Cash Flow Ratio and Net Debt / Equity ratio (or Combined Ratio for insurance businesses and Return on Assets, Net Interest Margin, Cost to Income Ratio and Bad Debts for the banks) based on the latest interim financial data.
• The current forecast year will become a historical result, based on the full year report, and a new third forecast year will be added
• Earnings forecasts will typically update in the two weeks following the release of the company’s full year results
• Key Facts, the information at the top of the Earnings screen, will update
Interim results: No changes
• The current forecast year will convert to a historical result, based on the full year report, and franking (the blue ring on the column) for the financial year will be added. A new third forecast year will also be added3. Dividends
• Dividend forecasts will typically update in the two weeks following the release of the company’s full year results
• Key Facts, the information at the top of the Dividends screen, will update
Interim results: The interim dividend per shares will be visible. Hover your mouse over the forecast DPS column to see the interim dividend amount and date.
4. Capital History
• Data in the first forecast year will switch over to become full year results, based up on the company’s financial report
• A new third forecast year will be added and the oldest historical year will be removed
• Key Facts, the information at the top of the Capital History screen, will update
Interim results: The Total Shareholders Equity and Total Debt (half width columns) will be added to the first forecast year. The Total Debt figure, as at the interim report, is available in the hover.
5. Cash Flow
• Cash Flow data for the latest financial year will be added, and the oldest historical year will be removed. The ‘Total’ column in the data table (below the chart) will be updated to reflect the new historical data period
• Key Facts, the information at the top of the Cash Flow screen, will update to reflect the company’s latest full year financial results
Interim results: no change. You’ll find the company’s interim Cash Flow Ratio on the Summary page
• The latest interim ShareAnalysis Score will be replaced with the company’s Score based upon its full year financial results6. ShareAnalysis Score
• Key Facts, the information at the top of the ShareAnalysis Score screen, will update
Interim results: Companies reporting interim results will receive an Interim ShareAnalysis Score. Interim financial reports and ShareAnalysis Scores capture all relevant financial and business activities that occur since the last full year report and provide investors with up-to-date information on the state of the business.
7. Value vs Price
• The current forecast valuation will switch over to be historical, and updated to reflect the company’s reported results. For the majority of companies where forecasts are available and the company has consistently updated the market on its financial position, the new historical value should not be too dissimilar from its former forecast.
• A new third forecast year will be added
• Forecast valuations will typically update in the two weeks following the release of the company’s full year results. Check how valuations have changed on the Forecast Updates page.
Interim results: No change.
8. Forecast Updates
• The forecast years available will update to reflect the latest available forecast data.
Interim results: No change.
Make the most of ShareAnalysis during reporting season – set up stock alerts
Set up stocks alerts and be notified when a company reports results and/or its ShareAnalysis Score changes – check out the suggested stock alert.