StockGrader MarketGrader Index Markets & Economy  DayTrader  Advanced Search
 Fundamental Analysis Tutorial
Stock Analysis | Honor Rolls | Portfolios | Watchlists
Fundamental Analysis
MarketGrader’s comprehensive fundamental analysis focuses on long term investing by rewarding the companies with the strongest overall financial performance.
This is based on the idea that in the long run performance follows fundamentals, which means that companies with superior management, solid financial performance and healthy fundamentals (sales and earnings growth, profit margins, cash flow, etc.) will outperform the overall market.
MarketGrader’s fundamental analysis grades every company from four different angles:
  • Growth
  • Value
  • Profitability
  • Cash Flow
Each one of these is represented by a group of six individual indicators that measure specific company data to arrive at a letter grade between A+ to F. The blend of these six indicators generates a final combined grade for the group, which is clearly explained in the text to the right.
MarketGrader’s fundamental report, which is broken down according to the four main areas of analysis, provides you with a straightforward explanation about the company’s strengths and weaknesses.
Growth
The Growth paragraph describes the company’s revenue and net income growth record over the short and long term in order to identify ongoing business trends. It also describes the impact the company’s earnings reports have had on the stock price as well as the company’s ability to exceed expectations.
Value
The Value paragraph describes the company’s valuation relative to its historical earnings per share record, to its sales, book value and cash flow. Clear definitions are provided to help you identify the company’s true value.
Profitability
The Profitability paragraph describes the company’s operating performance including its return on equity and its profit margins. The company’s leverage is explained in the context of its profitability and the strength of its balance sheet to determine adequate debt levels.
Cash Flow
The Cash Flow section describes the company’s ability to finance its debt and continue to grow through reinvestment of its own profits and its ability to generate cash from its operations as well as its return on investment, whether made by incurring debt or by raising equity.
You may click on any of the question marks next to each of the indicators for a complete explanation about them and to see the numbers relevant to each analysis. This will help you understand the grade given to the company for each of the indicators.
You may click on the ‘View PDF Report’ link at the top of the Fundamental Analysis page to view a PDF version of the company’s analysis. This feature allows you to conveniently archive or print MarketGrader.com’s reports and is only available to Premium subscribers.
 
about us | contact us | FAQ | newsroom | terms of use
MarketGrader.com © 2009. MarketGrader.com Corp. Patent Pending. All Rights Reserved. By accessing and using this site, you agree to our subscriber agreement, terms and conditions, and our privacy policy. News provided by MarketWatch ©. Fundamental data provided in part by Standard & Poor's, Copyright 2009, The McGraw-Hill Companies, Inc. Standard & Poor's COMPUSTAT© Data provided by Standard & Poor's, a Division of the McGraw-Hill Companies, Inc. Fundamental data provided in part by Baseline, a Thomson Financial company. Quotes delayed 15 minutes for NASDAQ. 20 minutes for NYSE and AMEX. Market Data provided by Interactive Data. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions.