Pristine Fundamental Analysis

The Pristine Fundamental Analysis indicator enables users to perform comprehensive fundamental stock analysis in a fraction of the time! 🏆

For swing/position traders, fundamental analysis is essential—it informs stock selection and strengthens conviction, enabling traders to stay in positions long enough to capture larger moves. Since every ticker represents both a business and a tradable asset, fundamental analysis perfectly complements technical analysis.

💠 Fundamental Analysis Insights - Weekly Timeframe
EPS & sales trends, margins & ratios, and valuation metrics are displayed on the weekly timeframe for in-depth analysis outside market hours.


💠 Fundamental Analysis Insights - Daily Timeframe
A slimmed down version of the fundamental analysis table is displayed on the daily timeframe to provide users quick insights into the fundamentals, while allowing them to focus on technical analysis during market hours.


💠 Fundamental Analysis Metrics to Deepen Understanding of Companies!

EARNINGS & SALES TRENDS

Why does it matter? Company stock prices tend to track the growth trajectory of earnings and sales over time. By analyzing fundamentals, users can gain an edge that pure technical traders do not have. This edge is most pronounced during big market dislocations when investors are forced to liquidate their top holdings.

▪ EPS - Measures year-over-year growth, quarter-over-quarter growth, and the surprise between actuals & analyst estimates

▪ Sales Analysis - Measures year-over-year growth, quarter-over-quarter growth, and the surprise between actuals & analyst estimates

MARGIN ANALYSIS

Why does it matter? Revenue is the lifeblood of a company. Margins measure company profits and expenditures as a percentage of revenue

▪ G% - Gross margin measures the percentage of revenue a company retained after subtracting the direct costs of producing the goods or services it sells, known as the cost of goods sold (COGS)

▪ CFO% - Measures the percentage of a company's revenue that was converted to Cash flow from operations (CFO). CFO, also known as operating cash flow (OCF), is the amount of cash a company generated from its core business activities over a specific period. It reflects the actual cash inflows and outflows resulting from the company’s main operations, such as selling products or providing services, and excludes cash flows from investing and financing activities.

▪ Net% - Net margin measures the percentage of revenue that was converted to net profit

▪ ROE% - Return on Equity measures how much net income a company produced for each dollar of equity invested by shareholders

▪ R&D% - R&D margin measures how much the company invested in research & development as a percentage of revenue

▪ D/E - The Debt to Equity ratio measures how much of a company’s financing comes from creditors (debt) versus owners (equity), providing insight into the company’s financial leverage and risk profile. The indicator tracks changes in the ratio over time

VALUATION METRICS

Why does it matter? Valuation metrics provide users an understanding of the potential risk if the fundamental trajectory of the company, or the broad market, changes! The more highly valued a company is, the more downside risk is present if conditions worsen, and vice versa.

▪ PE - The Price-to-Earnings ratio measures a company’s current share price relative to its trailing twelve-month(TTM) earnings per share (EPS). It helps investors assess how much they are paying for each dollar of a company’s earnings and is often used to gauge whether a stock is overvalued, undervalued, or fairly valued compared to its peers or historical averages.

▪ PS - The Price-to-Sales ratio measures a company’s current share price relative to its trailing twelve-month(TTM) sales per share. It helps investors assess how much they are paying for each dollar of a company’s sales and is often used to gauge whether a stock is overvalued, undervalued, or fairly valued compared to its peers or historical averages.

▪ BB% - Buyback yield measures the annual percentage of stock repurchased by the company. Share buybacks reduce total share count, which directly increases earnings per share!

💠 What Makes This Indicator Unique
There are many fundamental dashboards, however, what makes this indicator unique is customized metrics that were used to achieve back-to-back top finishes in the US Investing Championship. The main purpose of the indicator is to highlight companies with a history of EPS and sales acceleration , rather than focusing on the values in isolation, or even the growth of the values. Our goal is further evolution of the metrics and color signals based on continued backtesting and analysis of real-time market data.

▪ Custom Margin Metrics: Several of the margin metrics are unique and offer significant value beyond EPS and sales data alone.

For example, there are plenty of companies that have negative EPS due to non-cash expenses and/or investments they are making into their business, but that does not by itself mean that the companies are not worthy of an investment. Roblox (RBLX) is a great example. The company has consistently negative EPS, but the CFO% margin is positive! That means the core business throws off significant amounts of cash, and a large amount of it is being allocated to aggressive R&D spend, which is captured by the R&D% metric. This could propel the fundamentals of the business well into the future.


▪ Color Signals Based on Thresholds: The background colors of metrics are based on historical analysis and apply relevant thresholds to help users identify companies with strong fundamentals

▪ Comprehensive Inline Documentation: All headers cells offer detailed information about the relevant calculations/metrics as well as in-depth information on color coding and how to interpret each value. This small, yet important detail, allows users to quickly identify accelerating fundamental trends


💠 Practical Use Case Examples
Analyzing fundamentals to trade a Power Earnings Gap setup👇
In August 2023, APP reported a +467% YoY increase in EPS, 181% higher than Wall Street estimates! This sparked a generational trading opportunity.👇

After the first earnings report with stellar earnings growth, APP rallied > 1000% in 2 years, following the trajectory of sales and EPS.👇


💠 Settings and Preferences


💠 Tips and Tricks
Fundamentals drive price action during periods of fundamental transition
▪ Pre-revenue companies that are anticipated to start earning revenue
▪ Revenue-generating companies that are anticipated to flip from negative to positive EPS
▪ Revenue-generating companies that are anticipated to flip from negative cash flow to positive cash flow
▪ Major accelerations or decelerations in sales or EPS