This document provides a checklist for analyzing companies. It lists factors to consider such as supply, demand, competition, market growth, profitability, key risks, and financial ratios. Key steps are to identify the market segment the company operates in, research factors affecting growth and risks, and evaluate if the difference between growth factors and risks is greater than 3. Financial metrics like revenue growth, debt levels, earnings growth, and valuation ratios should also be considered.

1. Company analysis check-list
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Supply - no constraints
Demand - strong
Competition - solid advantages
Identifying what drives the market will help
prioritise factors in play. Example: oil market was
driven by demand until OPEC+ enhanced supply
Market Growth
Return on Equity >10%
Net Profit >10%
Operating Profit >15%
EBIT/Interest >5
Yield
Profitability
Health
Key Factor
Ratios
Key Risk
Description
Market Forces
Research Key factors affecting growth and
evaluate them on a scale from 1 (very weak) to 10
(extraordinary potential)
The key trick is to correctly identify the segment
the company operates in. Example: Tesla is an EV
producer, not general automaker.
Research Key risks for growth and evaluate them
on a scale from 1 (no risk) to 10 (extreme effect
and high probability)
(Factor points) - (Risk points) >3
CAGR >10% Segment size >$1 trillion
Market share <40% Market rank <3
Substitutes - absent Market Entry - hard
PEG <1.5 fwd P/E <20 within 3 yrs
Revenue growth - consistent in the past and estimated
Earnings growth >x2 Revenue growth
Debt
Option Bets
E
x
c
l
u
s
i
v
e
Debt/Equity <1
Gross Profit >20%
Earnings yield >8% Dividend yield >3%
Month Quarter Year
$?
$180
$170
$160
$155
$150
$?
Resistance?
Support?
Net Flows? Expectation