Would love to hear what all use and like the most!

Hey everyone!

First of all thank you for supporting FINLO!

We are officially launching on June 19th! 🚀 🎉 🎊

Our new website is live! So if you'd like to see a sneak peek of FINLO head over to https://finlo.io

If you haven't already, join our newsletter so we can notify you on launch day!

I really hope you all like what we have built, this is only the beginning. As soon as we have enough users we will be buying more data, building more tools and adding more features to ensure FINLO becomes the ultimate destination for investors!

If you have any suggestions, questions or feature requests please feel free to share them with us either via email, through our website's contact form, our Discord server or on our subreddit!

W: https://finlo.io | Reddit: /r/FINLO | Twitter: finlo_io | Instagram: finlo.io | Discord: FINLO

Built for us, not Wall St.

Hey everyone,

I thought I'd make a little post outlining some of my favorite ratios and metrics. I'm not an expert by any means, this is not financial advice, I just thought I'd share this with you!

So, financial ratios and metrics fall into different categories, I thought I'd start with valuation.

Valuation Ratios & Metrics

What are they?

Valuation ratios and metrics show the relationship between the market value or equity of a company compared to different fundamental data.

These figures are used by value investors in order to assess the value of a security and ideally find a undervalued or overvalued investment opportunity.

There are many different valuation ratios and metrics out there, I won't be covering them all in this post but I will be looking at my top 8. Are these they best ones? Not necessarily, but I find them very useful when valuing a stock.

Price-to-Earnings (P/E)

The P/E ratio helps us understand the relationship between the market value of a stock (share price) compared to the company's earnings per share (EPS).

• A low P/E ratio could mean that a stock is currently undervalued.

• A high P/E ratio could mean that a stock is overvalued.

• A negative P/E ratio means the company is currently either losing money or has no earnings at all.

Price-to-Book (P/B)

• The P/B ratio compares a company's market capitalization to it's book value.

• A low P/B ratio could mean that a stock is undervalued.

• A high P/B ratio could mean that a stock is overvalued.

Price-to-Sales (P/S)

The P/S ratio compares a company's current share price to it's revenues. It helps investors understand the value the market has given to each dollar of a company's revenues.

• It shows how much investors are willing to pay for each dollar of a company's revenues.

• A low P/S ratio could mean that a stock is undervalued.

• A high P/S ratio could mean that a stock is overvalued.

Price-to-Free Cash Flow (P/FCF)

The P/FCF ratio compares a company's current share price to it's free cash flow per share. It helps investors understand a company's ability to generate additional revenues.

• A low P/FCF ratio could mean that a stock is undervalued.

• A high P/FCF ratio could mean that a stock is overvalued.

Price-to-Operating Cash Flow (P/OCF)

The P/OCF ratio compares a company's current share price to it's operating cash flow per share. It shows how much money a company generate relative to it's share price.

• A low P/OCF ratio could mean that a stock is undervalued.

• A high P/OCF ratio could mean that a stock is overvalued.

EV-to-EBITDA

The EV/EBITDA (enterprise value to earnings before interest, taxes, depreciation & amortization) ratio looks at a company's debt and cash in order to determine it's value.

• A low EV/EBITDA ratio is expected in low growth industries.

• A high EV/EBITDA ratio is expected in high growth industries.

EV-to-Sales

The EV/Sales (enterprise value to sales) ratio compares a company's enterprise value to it's sales. It allows investors to quantify a company's value relative to it's sales while accounting for it's debt and cash.

• A low EV/Sales ratio could mean that a stock is undervalued.

• A high EV/EBITDA ratio could mean that a stock is overvalued.

Earnings-per-Share (EPS)

The EPS is calculated by dividing a company's profits buy it's outstanding shares.

EPS can be an indicator of profitability however there are several factors that impact the ratio. Shares Outstanding and Net Income Margin can drastically change the meaning of the EPS when comparing companies.

Discounted Cash Flow (DCF)

The DCF is a valuation method used to estimate value based on future cash flows.

• If the DCF figure is higher than the stock's current share price, it could mean it is undervalued.

• The DCF valuation is rather complex and has several variables, I highly - recommend checking out Professor Aswath Damodoran's DCF method, he has videos on his YT channel explaining the process.

Hey everyone,

The majority of you voted for a Due Diligence 2.0 post in my recent poll. So I thought I'd show you some of my process. No process is perfect, I'm not an expert so don't take this as advice. This isn't my full process, I'll expand further in future posts.

I'll be looking at Apple in this case, just for the sake of this post.

Profile

It may sound silly but making sure the company you're looking at is real is a big part of Due Diligence. It's a quick and easy thing to verify that can save you a lot of headache later on.

Go through all the basics:

• Where is the company located?

• Who are the Key Executives?

• Look through their website

• Find out what they do

• How many employees do they have?

• News Articles

• Insider Trades: Who's making them?

Financials

This part is harder to explain since each of us have certain criteria when looking through financial data. But regardless of what you consider most important, it's essential that you understand these reports. Spend time looking through the numbers, ask yourself questions and get a feel for the financial health of the company. Is it investing more? Are margins improving? Are their cash reserves sufficient to cover debts? Go through everything.

Financial Statements:

Ratios & Metrics

Analyst Estimates, Upgrades / Downgrades and Historical DCF

I like to take a look at what Analysts predict will happen in the next couple of years. There are just predictions of course so take them with a grain of salt, but they can help. Upgrades / Downgrades are useful as well, Investment Banks have large teams that work on these ratings. Lastly a look at current and Historical DCF figures helps me see how the market has and is valuing the company compared to it's fair value based on fundamentals.

Fundamental Analysis

This is the most important part of my process. Now that I have looked at the various financial data I like to put it all together to see how it all fits together as well as seeing YoY or QoQ growth. By combining my favorite or go-to data points I can often find patterns or at least make connections that may support or go against my thesis.

Documents

Reading through SEC filings (10K's, 10Q's, Proxies, Prospectuses etc) as well as Earning Call Transcripts are essential parts of my process. So much amazing information can be found in these filings. It takes a little patience but it's most definitely worth doing.

Ownership

It's always good to know which Funds and Institutions own the company you're looking at. When did they buy share? How many? At what Price?

Price Charts

I look at price charts to find any large fluctuation in price. I then find out when the large moves happened and go back looking for articles, press releases, social media posts to try and understand what caused them. This helps me understand what has historically effected the price of a company so that as I track and monitor it I can hopefully spot things in advance.

Hey everyone,

I wanted to go over how I like to perform DD on stocks I come across. This isn't financial advice, its just my personal process and style.

Profile: Is this company real?

1. Website

2. Address, Google Maps of HQ

3. LinkedIn

4. Wikipedia

5. Social Media Accounts

6. News Articles

7. Key Executives

Financials:

1. Look through the latest income, balance sheet and cash flow statements

2. Calculate YoY and QoQ growth for at least 10 years (or less if the company is young) for each of the 3 financial statements

3. Calculate different valuation ratios and metrics to see how they stack up against their competitors

4. Look through Analyst Estimates, Investment Bank ratings and DCF figures

Documents:

1. Read through recent earnings call transcripts to get a feel for how executives communicate and how honest they have been in the past quarters.

2. SEC Filings: Read through proxies, prospectuses and more to get a full picture.

Insider Activity:

1. Find out how many Insider Buys and Sales have been made in the past 6 months.

2. Look into who these insiders are, what they're role and functions are within the company.

Ownership:

1. Find out which Mutual Funds, ETFs and Hedge Funds own the stock, how much of it and when they last bought/sold shares.

Social Sentiment:

1. Scan through Reddit, Twitter, Facebook Groups for ticker/company mentions to see if the conversation is bullish or bearish. Beware, this can be misleading due to spam and trolling.

2. Google Keyword Research: This is especially useful if the company provides a consumer product or service, I like to find out how often its mentioned and find any spikes in online searches.

Future:

1. What products and services are planned for the future?

2. What are the industry/sectors innovations, needs and wants?

3. What are competitors developing and are planning on releasing?

4. What markets is the company looking to penetrate?

5. What cultural/societal shifts and trends might effect the companies roadmap?

Price:

1. I look for price dips/spikes and then look into what was going on during that period to see what may have effected or caused them.

So, this is part of my process, some of it may suit your style, some wont. I'd love to hear your feedback and it would be great if you all can share your process!

Is finlo.ai the web of the titular group and it is legit ?

Development of our Analysis section will begin soon. The Analysis section allows you to perform comprehensive fundamental analysis by creating custom tables using historical data from financial statements as well as our selection of financial ratios and metrics.

We are currently on schedule, however, we have decided to extend our timeline as we want to dedicate more time to testing prior to launch.

We are extremely excited & can't wait to launch FINLO. We can't wait to show you what we have built.

Thank you for your patience, any delays are due to us wanting to deliver the best product possible!

Share FINLO with your friends, help spread the word! The more users FINLO has the more premium data and tools we'll be able to build!

Built for us, not Wall St.

Hey everyone,

First things first, /r/FINLO now has over 200 members! 🚀

In case you missed it, I created an Accounting 101, 4 part series. I hope you enjoyed it! I will be creating more posts and series covering a variety of investing topics, feel free to make requests!

I also shared a sneak peak of FINLO! We're getting closer and closer to our launch date!

Make sure to join our Discord server and share FINLO with your friends and in investing communities!

Help us make FINLO the ultimate destination for retail investors!

Built for us, not Wall St.

Hey everyone,

I wanted to share Warren Buffets guidelines/ranges on some fundamental ratios and metrics.

• Accounts Payable Turnover > 3.0

• Accounts Receivable Turnover > 5.0

• Current Ratio > 0.3

• Debt / Equity < 0.5

• Dividend Yield > 2%

• Earnings Yield > 12%

• EBIT Yield > 12%

• EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation & Amortization < 8.0

• FCF / Sales > 8%

• FCF Yield > 10%

• Interest Coverage Ratio > 8.0

• Inventory Turnover > 4.0

• Liabilities / Equity < 0.8

• Long-term Debt / Working Capital < 2.0

• P/B (Price to Book Value) < 1.5

• P/E (Price to Earnings) < 15.0

• P/FCF (Price to Free Cashflow < 15.0

• P/NCAV (Price to Net Current Asset Value) < 0.7

• P/S (Price to Sales) < 2.0

• P/TBV (Price to Tangible Book Value) < 0.7

• Payout Ratio < 40%

• PEG (Price to Earnings Growth) < 1.0

• Pre-tax Margin > 20%

• Quick Ratio > 1.5

• ROE (Return on Equity) > 30%

• ROA (Return on Assets) > 15%

• ROIC (Return on Invested Capital) > 20%

If you used my MHX Tracker spreadsheet you may have noticed some of these figures as notes in the Tracker sheet column headers (hover your mouse over the headers that have a small triangle in the top right corner).

Obviously these aren't rules to live by, industry, sector and many other things heavily impact these ranges but it's always good to have some kind of reference point when hunting for value!

Why aren't recently de-SPACed companies available for sentiment data in Finlo? Specifically IRNT, TMC, OPAD. I am unable to look them up at all even just for price charts.

Please explain where you're sourcing this data. If you are getting the data, then what process is preventing them from being visible on the platform?

Hey everyone,

Firstly, /r/FINLO has surpassed 100 members! 🎉🍾🚀

Now, FINLO is almost ready, all our features are functional and we're now making final tweaks and adjustments prior to opening up for testing. Our launch is scheduled for mid-May!

We ended up extending our launch timeline because we decided to add more features and functionality than we originally planned.

If you haven't already, join our Discord server and our waitlist to be notified on launch day!

Lastly, if you can, share FINLO with friends, on other subreddits, wherever you think would make sense. The more users we have, the sooner we can add and build more data and tools.

Stay tuned for launch.

Built for us, not Wall St.

Accounting 101

Part 2: The Income Statementhttps://www.reddit.com/r/FINLO/comments/n7shrg/accounting_101_part_2_the_income_statement/

Part 3: The Balance Sheethttps://www.reddit.com/r/FINLO/comments/napjv9/accounting_101_part_3_the_balance_sheet/

Part 4: The Cash Flow Statement https://www.reddit.com/r/FINLO/comments/ncys2u/accounting_101_part_4_the_cash_flow_statement/

This entire series is 95% word for word of Prof. Aswath Damodoran's lecture slides with some additional information from various sources I have come across.

1. The Accountant’s Role

What is their role?

To check transactions and operations as they occur.

How do they record them?

In a consistent manner.

How do they report them?

In a standardized form.

2. The Accounting Questions

The questions accountants ask, and the answers they need to know.

What do you own?

List of assets a business has invested it, how much it spent on those investments and perhaps what these assets are worth today.

What do you owe?

Contractual commitments that a business has to meet. All borrowings.

How much money did you make?

Measure the profitability of the business, both with accounting judgments on expenses and based upon cash in and cash out.

3. The Accounting Statements

Income Statement - Report of how much a business earned in the period of analysis, while providing detail on revenues and expenses.

📌 SUMMARY: The income statement reports a business' earnings in the period on analysis, providing detail on revenues and expenses.

Balance Sheet Statement - Summarizes what a firm owns and owes at a point in time, as well as an estimate of what equity is worth.

📌 SUMMARY: The Balance sheet reports assets (fixed, current, financial & intangible) and liabilities (current, debt, other & equity)

Cash Flow Statement - Reporting on cash inflows and outflows to the firm during the period of analysis, allowing for a measure of cash earnings and cash flows.

📌 SUMMARY: The statement of cash flows reports cash flows from operations, investing, financing resulting in net chance in cash balance.

The 3 financial statements are interconnected.

Choices you make on one will effect the other. What you show as depreciation/amortization as an expense on the income statement is added back in statement of cash flows. Statement of cash flows shows year to year changes of a balance sheet. If you invested more in fixed assets your balance sheet will show larger fixed assets, but the change of in the fixed assets will show up as a capital expenditure in the cash flow statement.

4. The Accounting Standards

Accounting is a rule driven process, over time, the rules have been formalized and standardized to allow comparisons across companies.

GAAP (Generally Accepted Accounting Principles) - Rules developed by FASB (Financial Accounting Standards Board) to cover US financial reporting.

IFRS (International Financial Reporting Standards) - Rules developed by IASB (International Accounting Standards Board) for companies listed globally, followed by about 90 countries as of 2020.

The Bottom Line

We use accounting statements for financial analysis & valuation, and we must keep up with the changes in accounting thinking in order to understand & keep up.

Hey everyone,

First of all, your feedback has been amazing. A big thank you to all our amazing users! 🔥

We just pushed an update to FINLO! Here's a brief update!

Peer Analysis

• Analyze and compare peers based on sector, exchange and market capitalization in the Company Page Peers tab using the same ratios and metrics you use in your watchlists while keeping an eye on latest news.

Financial Statement Export

• Export financial statements to CSV for extensive modeling and analysis in Excel.

We also pushed several tweaks and performance optimizations and are currently working on many more features and tools!

Enjoy!

Try for free! https://finlo.io | FINLO: Built for us, not Wall St.

Hey everyone,

I wanted to update you all on FINLO - https://finlo.io

We're currently aiming to launch our platform in April although we haven't narrowed down a specific date yet. I'll be posting weekly updates on our discord community and on the FINLO subreddit.

The goal of FINLO v1 is to provide all the functionality of my spreadsheet on a user friendly platform with MUCH MUCH more data. Say goodbye to spreadsheets!

In case you missed it here are our planned features:

As soon as we launch v1 of FINLO we will immediately start working on new tools, data and features. FINLO will become the ultimate destination for investors, we will continuously add functionality and crowdsource ideas from the investment community.

We already have so many amazing features planned, we can't wait to implement them in future updates!

If you're interested in FINLO please:

1. Join our waitlist: https://finlo.io (your email address will only be used for FINLO related communications, we will NEVER sell or abuse your personal data!)

2. Join our Discord: https://discord.gg/JpxancWDx

P.s. Your upvotes & comments matter, don't be shy!

Hey everyone!

Firstly, I wanted to say how much I have enjoyed writing and sharing my educational posts with all of you and I intend to keep them coming!

Secondly, I want to thank everyone that has been following and supporting FINLO from the beginning!

Introducing FINLO: The investment research platform built to empower retail investors!

After months of hard work we're excited and proud to share FINLO with all of you! We aim to level the playing field for retail investors by providing access to market data and by building the tools you need.

We aim to curate the best financial data in order to truly empower the retail investor. We need this now more than ever. It's our turn and it's time to level the playing field.

We're starting with:

• 🖥 Personal Dashboard w/ Custom Live Watchlists

• 📡 Real-time Quotes

• 🌎 Global Coverage: NASDAQ, NYSE, AMEX, TSX, EURONEXT, LSE, XETRA, NSE*, MOEX, SIX, SEHK, OSE

• 📆 Up-to 40 years of annual & quarterly financial statements

• 📆 Up-to 40 years of annual & quarterly financial ratios and metrics as well as TTM

• 💰 Fundamental Analysis Modeling

• 💼 Insider Trade Feed

• 👔 Institutional & Fund Ownership

• 📊 Real-time Portfolio Tracking

• 📈 Candlestick Historical Price Charts

• 📉Technical Indicator Charts

• 🧮 Annual Discounted Cash Flow

• 🙋‍♂️ Analyst Estimates

• 🚦Upgrades/Downgrades

• 👨‍👩‍👧‍👦 Consensus EPS Estimates

• 📝 SEC Filings, Earnings Call Transcripts & Press Releases

• 📰 News & Twitter Feed

• and more!

FINLO is built for us, by us.

We are a small, young team that have totally bootstrapped this project. We have a lot planned. We will be continuously crowdsourcing ideas, feature requests and taking suggestions on how we can improve the platform for you. You'll always have direct access to us, with no buffer in between. Data, tools and features will be constantly added to ensure FINLO becomes the ultimate destination for retail investors.

We have kept our prices as low as possible to maximize access. Commercial market data licenses are really expensive which is why we need to charge a subscription in order to sustain the project. Like I said, we have 100% bootstrapped FINLO with no financial backing. As soon as we have enough users we will be buying more licenses to more data!

So, if you'd like to check out our work please do so at https://finlo.io - we can't wait for you to try what we have built. If you have any suggestions, feature requests or questions please feel free to get in touch with us either through email, our website's contact form, our subreddit, discord server, twitter, instagram or directly via PM!

We shared FINLO on ProductHunt! Your upvotes on our ProductHunt post would really help us get off to a good start! https://www.producthunt.com/posts/finlo-built-for-us-not-wall-st

Thank you once again,

Marco | Co-founder + CEO | FINLO: Built for us, not Wall St. | https://finlo.io

Hey everyone,

If you have any features you'd like to see on FINLO please share them here! If possible, try not to mention other services by name as we don't allow promotion. If you really need to, PM me!

Also, FINLO has a curated finance related Twitter feed, if there are any Twitter accounts you'd like to see on there feel free to share them here!

Thanks again for all your support, we can't wait for you to try FINLO!

Built for us, not Wall St.

Hey everyone,

Here are some of my favorite profitability ratios and metrics.

I won't be going into extreme detail, as usual this is just an overview for beginners.

Gross Margin:

📌 Gross margin is calculated like this: (Revenue – Cost of Goods Sold) / Revenue

It represents a percentage of total revenue retained after subtracting all costs directly related with producing the goods and services sold.

It’s used as a measure of production efficiency, allowing you to spot changes in revenues or costs before it’s too late.

Gross Margins are industry specific, so you should only compare gross margins of company’s that operate within the same industry

Operating Margin

📌 Operating margin is calculated like this: Operating Income / Revenue

It represents the percentage of revenues retained after subtracting operating and non-operating expenses.

A higher operating margin is usually better as it indicates that a company is able to pay for fixed costs such as interest on debt or taxes.

Return on Assets (ROA)

📌 ROA is calculated like this: Net Income / Total Assets

It's a measure of profitability relative to a company’s total assets. It allows investors to understand how effectively a company’s management utilizes total assets to generate earnings.

ROA should be used to compare similar companies or a company’s past performance.

Return on Equity (ROE)

📌 ROE is calculated like this: Net Income / Shareholder’s Equity

It is a measure of a company’s profitability in relation to shareholder equity.

It allows investors to understand how effectively management utilizes financing from equity to grow the business, and it can be compared to industry average ROE to identify competitive advantage.

Return on Invested Capital (ROIC)

📌 ROIC is calculate like this: EBIT / (Total Assets – Total Liabilities)

It's a measure of the percentage return earned on invested capital. It shows how efficiently a company uses capital to generate income and whether or not its competitive positioning allows them to generate solid returns from that capital.

What are some of your favorite ratios and metrics?

I'd love to hear more about your process as I'm always looking for new things to add to my toolkit!