Visual fundamental analysis

[i4value]

Over the past few months, I have been working with a social investment platform to visually present the results of a fundamental analysis of Bursa companies.

This Fundamental Mapper plots the comparative fundamental performance of companies within a sector on the horizonal axis and the margin of safety (difference between intrinsic value and market price) on the vertical axis. 

The pin illustrates this

https://www.pinterest.com/pin/797840890268685690/

This is meant for the fundamental investor so that he can quickly get a sense of a stock position. It is base on the past 6 years financial data of companies. The idea is that with this picture, the investor can then spent his time on the qualitative analysis.

I would be interest to get feedback and comments on this Fundamental Mapper - what else can be improved, what is wrong with it, etc 

It is currently at the Beta testing stage but will be unveiled soon.  

[dzwm87]

Anything that is a single chart is just too simplistic against something that is dynamic and constantly changing.

It is like my former colleague who wants to rank the entire stock universe from 1 to N. Very good to market but real business owners probably laugh and dismiss it.

Maybe an incremental improvement is to do it across different meaningful fundamental metrics such as per key input efficiency rather than headline profit margin and backward revenue growth numbers. The challenge is in parsing it and maintaining it regularly.

[weijian]

hi i4value,

My 2 cents' worth:

(1) I disagree that MOS is the difference between market price and intrinsic value. MOS comes from the quality of the company, not valuations. Valuations determine the quantum of returns.
I have seen growth folks overpaying for quality - Do they have MOS? Yes. Are they going to underperform? Yes.
I have seen value folks overpaying for underquality - Do they have MOS? No. Are they going to underperform? Probably Yes.

(2) Based on my personal experience, the "Low-Poor" quadrant is more like "value traps" than "turn-arounds" as you euphemistically termed. The only time "value-traps" turnaround, are when they have/plan some sort of actions. These actions are dynamic, subjective and may not be captured quantitatively. So a 2-axis scatterplot may be overly simplistic, IMO.

(3) And based on your experience, have you seen any "Low-Good" quadrant goldmine?