Question: What are some of top ways you evaluate a stock fundamentally?

Newbie question. I’m learning from reading & listening to various YouTube channels. I would love to have some of the seasoned investors tell me what are some of top ways you evaluate a stock fundamentally? I’m not even sure if it’s something you can answer in a concise answer. I realize experience & time is probably the greatest teacher.

Nandy Colon: I really like the book “The single best investment”. Really does teach you about fundamentals and how to understand them.

Catherine Haggerty: Thank you

Andy Pickett: Highly recommend you buy this book.

Nandy Colon: Seems like we are in the same page

Andy Pickett: Lol. Great minds think alike I guess. Must have posted at the same time.

Jason Norwood: The SBI and this book by Pat Dorsey are pretty easy to understand. I would start with these two and then read the Intelligent Investor.https://www.amazon.com/…/0471269654/ref=tmm_hrd_title_0…

The Five Rules for Successful Stock Investing: Morningstar’s Guide to…
amazon.com

Chad Atkinson: SBI is on my nitestand…I’ve read it many times.

Catherine Haggerty: I will put that on my to do list

Catherine Haggerty: Thank you

Helen Sriubiskis: “The single best investment” is an excellent book, but it doesn’t delve into stock valuation.

Marian MJ Jordan: 🖒

Ken Faulkenberry: This is the process I use for my initial screening: http://dividendvaluebuilder.com/selecting-dividend…/

Selecting Dividend Stocks With The Dividend Analyzer: How It Works -…
dividendvaluebuilder.com

Brandon Nicholas: Fastgraphs is indispensable once you learn how to use it.

Catherine Haggerty: I’ll look at that. Thank you

Brian Fey: I look at P/E. I look at last several years revenues, profits, cash, and debt. These are the most important numbers to me. You want to see growing revenues and profits, and ideally debt falling. Cash may fall, and that’s ok, depending on where it went, and why it’s gone.

Catherine Haggerty: Thank you!

Phuong Tran: There are many things that you need to look at before making an investment decision. As for the valuation of a company, there are several different ways. The two ways that I believe are more prevalent are Discounted Cash Flow and P/E approach.

Catherine Haggerty: Thank you. 😄

Tom Pronk: Catherine, like people mentioned before the SBI book is a good start. Besides looking up fundamental metrics you have to understand what they mean and how they interact together. Because it is important you form your own opinion on a company. Only you can do that because you can only determine your risk profile, your investing goals etc.May I ask what your number one ‘struggle’ is with fundamental analysis at the moment? Is it understanding the different metrics or which ones to use etc?

Catherine Haggerty: Probably deciding what to actually look at and how to utilize that information. I just ordered the book, so I am looking forward to reading it & learning more. Right now I have been adding small shares of blue chip companies each month, as I learn.

Voorzichtige Belegger: Start reading a few books e.g Dividends still do not lie

Helen Sriubiskis: Voorzichtige Belegger I don’t recall that that book covers valuation of stocks.

Brandon Nicholas: Yeah, “Dividends still do not lie” was written shortly after the financial crisis and wastes a lot of time talking about it, much of which is old news today. It was written by the guy who took over for Geraldine Weiss, who wrote the original book, “Div…See more

Steve Goddard: Go to Barchart, add ticker and click barchart opinion on the left.

Chris Collette: This was my first book…i now have several, but this was a great starting point

Rich Krohley: Forget these retail books that most are saying to get. Pick up an academic book on fundamental analysis and portfolio management. There are plenty out there.

Bill Degnan: I posted the following in response to someone with the same question:1. How volatile is the stock and how has it fared in major downturns? You could look at beta to see how it is correlated with the market overall. Also look at the industry it is in. How is the industry doing and how does it stack up against peers.2. How stable is the dividend history and is there a history of increases?3. Do you understand the business model and product/service?4. Does a high yield indicate risk i.e. are they borrowing to pay the dividend or not investing in the company?5. Is the stock appropriate for the type of account you will hold it in?6. How does the stock fit in your portfolio i.e. diversification, etc.These are just a few of the things that I look at. Not necessarily a complete list. I do look at Morningstar as a sanity check. I subscribe to both the premium and dividend services. A bit pricey, but I use both every day. Finally, I like Vanguard‘s portfolio analysis feature. Fidelity has a similar feature, but I am not wild about providing them with userids and passwords for all my accounts.

Bing Cloud: And more importantly, how sustainable is the dividends. Free cash flow payout is one of the top evaluation you can help yourself to save you from trouble in the future. If it is REIT, than it is FFO (funds from operations).

Bernie Klunder: Catherine, I find the monthly updated CCC list to be an invaluable resource for researching U.S. listed dividend growth stocks.

Catherine Haggerty: Oh thanks. I’d never heard of that list. I just googled it. I’ll read more about it. 😄

Bernie Klunder: The Champions, Contenders and Challengers Lists or CCC Lists are maintaned by David Fish and can be found here under “U.S. Dividend Champions”: http://www.dripinvesting.org/tools/tools.asp

The DRiP Investing Resource Center – DRiP Information, Tools, And Forms
dripinvesting.org

Catherine Haggerty: Thank you. It looks like a good resource.

Catherine Haggerty: Bernie Klunder wow!! That is a nice resource of information!!!

Bernie Klunder: Catherine, you may also like the site linked below. Its maintained by Robert Allen Schwartz. Fish and Schwartz are both contributing authors on “Seeking Alpha” where you can read a lot of informative investing articles. http://www.tessellation.com/dividends/

Compound Annual Growth Rate of Dividends: Home Page
tessellation.com

Kevin McMonnies: So many new great tools available. I really like following value/dividend writers on Seeking Alpha and run their ideas through Fastgraphs and SimplyWall street to see if the programs agree. Developing a style/plan that works for you takes time and patience. Best of luck.

Catherine Haggerty: Yes there is so much information available to us in this technology age.

Dominick Pantano: Compare co. In same industry ; 2 of my favorite are return on Equity & return on Assets,; tells you how much co. Paid back with your investment

Catherine Haggerty: Thank you.

Clint Douzat: So much that goes into it, but the first thing I look for is if dividend is with the company’s free cash flow, how much debt the company has and whether it’s been growing or stable, and either the quick ratio or current ratio

Catherine Haggerty: Yes, I can’t wait to look back in a year to see all that I’ve learned. Starting something new always makes you feel overwhelmed sometimes. Hahahaha

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