FAQs Answered On The Stock Engine

A1: The Stock Engine is our in-house developed web application designed for in-depth fundamental analysis of stocks. Unlike simple reporting tools, it uses sophisticated algorithms to actually analyze stocks and provide actionable insights. Its primary purpose is to help you answer key questions like: Is a company fundamentally strong? and What is a fair price to buy its stock? [1]. It aims to make the entire stock analysis process intuitive and easy to understand.

A2: You can access the Stock Engine app by opening it in your browser, starting from apps.getmoneyrich.com On the top right corner of the page you will find the login option. If you have still not subscribed to the Stock Engine, subscribe it here. Once logged in, you’ll see options for the Stock Screener, Mutual Fund Screener, and Calculators. To analyze stocks, you’ll primarily go into the “Stock Screener” section.

A3: The Stock Engine offers several powerful tools to assist your analysis goal:

• The Big Screener: This is a highly customizable tool that lets you filter stocks based on over 40 fundamental metrics of your choice, like market capitalization, net profit, debt-to-equity ratio, and price-to-earnings (P/E) ratio. You can even save your custom filters for future use.
• Pre-Built Screeners (Screener Themes): If you prefer a quicker approach, there are 21 pre-built screening themes (e.g., “Growth,” “High Profitability,” “Wide Moat,” “Undervaluation,” “Strong Fundamentals”). These provide ready lists of stocks that fit specific stock screening ideas.
• Individual Stock Pages: For any stock that catches your eye, you can delve into its detailed report page. This page provides in-depth analysis, including intrinsic value, price trends, and a breakdown of the Overall Score based on its six key parameters.
• Mutual Fund Screener and Financial Calculators: The platform also includes a mutual fund screener and various financial calculators to help with broader financial planning.

A4: The Big Screener is a powerful too. Let’s how to use it effectively:

• Using the Big Screener: Access it from the “Stock Screener” section. The left sidebar has all the screening parameters like sector, industry, price, market cap, profit, net worth, cash flow, liquidity, solvency, return ratios (ROE, ROCE), growth metrics, and valuation ratios (P/E, PEG, ROIC). You select your desired fields, choose operators (e.g., “less than or equal to”), input values, and click “Submit” to filter stocks that meet your criteria. For more details, read this user guide.
• Using Screener Themes (Pre-Built Screeners): In the “Stock Screener” section, select “Screener Themes”. You can choose from various pre-built themes like “Undervalued Stocks” etc. The app will then display a list of filtered stocks, often with a theme-specific GMR Score. Read more about GMR Score here.

A5: The Overall Score is one of the proprietary core algorithms of the Stock Engine. It’s a comprehensive rating (from 0 to 100%) that reflects the fundamental strength of a company’s business. A higher overall score indicates a stronger company. As a general rule of thumb, an overall score of 75% or more makes a stock interesting for consideration. You can read about the Overall Score in detail

A6: The Overall Score is calculated based on a weighted average of six crucial parameters, each individually scored on a scale of 0 to 5 (0 being lowest, 5 being best):

• Price Valuation: Assesses if the stock is undervalued, overvalued, or fairly priced compared to its intrinsic value. Read about the intrinsic value concept here.
• Profitability: Measures how efficiently the company generates earnings, using metrics like Return on Capital Employed (ROCE), Gross Profit Margin (GPM), Net Profit Margin (NPM), Operating Profit Margin (OPM), and Operating Cash Flow Margin (OCFM), considering their absolute numbers and trends over 5 years. Read about the profitability algorithm.
• Future Growth: Evaluates the company’s potential for sustainable growth, analyzing metrics like Revenue Growth Rate, EPS Growth Rate, Net Worth Growth Rate, Operating Cash Flow Growth, and especially the Sustainable Growth Rate (SGR) over a 5-year period and current Trailing Twelve Months (TTM) data. Read about the growth algorithm.
• Financial Health: Assesses the strength of the company’s balance sheet, its debt management, and liquidity. It looks at Debt-to-Equity (D/E) ratio, ‘net debt’ (debt minus cash), current ratio, quick ratio, cash ratio, and the consistency and trend of ROE and ROCE. Read about the financial health algorithm.
• Quality of Management: Judges the effectiveness of the leadership by analyzing factors such as consistent growth in operating profit and EPS, efficient capital utilization, and responsible dividend payments. Read about the ‘Quality of Management’ concept here.
• Economic Moat: Identifies the company’s competitive advantages that protect its long-term profitability , often by comparing it to industry peers and assessing its pricing power. Read about the Econonic Moat concept here.

A7: The GMR Score (GetMoneyRich’s Score) is a theme-specific score. Each of the pre-built screeners (like “Growth Stocks” or “Undervaluation”) has its own independent algorithm that generates a GMR Score. This score helps you rank stocks within that specific theme. For instance, a stock might score highly in the “Growth” theme but less so in the “Undervaluation” theme. The GMR Score ranges from 0 to 100. Read about GMR Score here.

A8: The Intrinsic Value is an estimate of a stock’s true value. The Stock Engine uses multiple valuation and mathematical models to estimate this value, including:

• Price to Sales method.
• Price to Book Value method.
• Net Current Asset Value Per Share (NCAVPS).
• Discounted Cash Flow (DCF) Model.
• Absolute PE method.
• Residual Income Method.
• PE & EPS trend.

A9: The Stock Engine is designed to make interpretation easy, even for beginners, by providing plain text conclusions and “questions and answers” type outputs.

• Overall Impression: At the top, you’ll see a direct comment, such as “I’ll wait for correction,” “I will avoid this stock,” or “I will buy”. This gives you an immediate first impression.
• “How is the stock?” section: This provides a summary like “The fundamentals of the stock are very strong, but the price is very overvalued”.
• Spider Diagram: This visual representation shows how the stock scores on each of the six parameters (Price, Growth, Management, Profitability, Financial Health, Economic Moat) on a scale of 0 to 5. This type of graphical representation of the scores helps you to quickly identify strengths and weaknesses.
• Detailed Sections for Each Parameter: For each of the six parameters (Price Valuation, Profitability, Growth, Financial Health, Quality of Management, Economic Moat), the app provides a plain text declaration (e.g., “Yes, the company is very profitable,” “Financial Health is strong”). Below this, you’ll find the numerical score (out of 5) and key underlying metrics that contribute to that score. Quantifying the text based output makes the interpretation easy.
• Trend Analysis: You can view 5-year (or 10-year) trends for key metrics like sales, EPS, and price to understand consistency and direction. This helps in identifying stocks where fundamentals are improving but the price might be lagging.

A10: Generally speaking, these scores are majorly impacted by the business fundamentals. This means significant changes are typically visible once each year or when quarterly financial reports are updated. Minor changes might also be observed if the daily stock price movements see a major ups or down.

A11: The Stock Engine operates on a freemium model [4]. While some features like a few pre-built screeners and financial calculators are free, most of its advanced capabilities, including the Big Screener, all 21 pre-built screeners, the Overall Score, Intrinsic Value, and detailed stock pages, require a paid subscription. Various subscription plans (3-month, 6-month, or 12-month) are available, with the 1-year plan offering the maximum discount.

A12: We’ve made it easy to reach out. You can use the “Contact” module directly within the app. Just click the button, type your query or doubt, and we’ll receive it via email. Or You can sent me an email at contact(a)getmoneyrich.com. You can also use the Chat Link to reach me.

A13: Yes, banking stocks are not included in the Stock Engine. I feel, it is more easier and direct to analyze a banking business than other business models. Hence, I have taking extreme care to code a financial algorithm that can effectively analyze non-banking business only. If you want to know how to analyze bank stocks, read here.

A14: Though Stock Engine’s algorithm has been coded to deeply analyze and screen quality stocks for its users, but this information cannot be used as an investment advice. I’m neither authorized not capabale of giving stock investment advices. Stock analysis is my hobby and hene I’ve been coding and developing my financial algirithm since last 10 years and more. I just share my evolving understanding of the stock market through my blog posts and the Stock Screener App (The Stock Engine). Nothing available on the Getmoneyrich.com domain shall be treated as a investment advice. Do your analysis and if necessay consult an authorized investment advisor before investing.