Profitability
5‑Year ROA Range
Chartable: No
Unit: Current Percent of Range
Current ROA relative to its 5-year high and low (graphical).
5‑Year ROE Range
Chartable: No
Unit: Current Percent of Range
Current ROE relative to its 5-year high and low (graphical).
5‑Year ROIC Range
Chartable: No
Unit: Current Percent of Range
Current ROIC relative to its 5-year high and low (graphical).
Asset Turnover (Premium Plus)
Chartable: Yes
Unit: Ratio
Revenue divided by total assets. Shows how much revenue the company generates per dollar of assets owned. Higher is more efficient.
General benchmarks: Above 1.0 is efficient; below 0.5 is capital-intensive.
Depreciation and Amortization Margin (Premium Plus)
Chartable: Yes
Unit: Percentage
Depreciation and amortization as a percentage of sales. Higher values indicate more capital-intensive businesses with heavier asset replacement burdens.
EBITDA Margin
Chartable: Yes
Unit: Percentage
EBITDA as a percentage of sales. Strips out financing, tax, and accounting differences to reveal core operating profitability.
General benchmarks: Above 25% is strong; 10–25% is typical; below 10% indicates a competitive or capital-intensive business.
Greenblatt ROC
Chartable: Yes
Unit: Percentage
A variation of Return on Capital that takes EBIT as a percent of Net PP&E plus positive Working Capital, as used in Joel Greenblatt’s magic formula investing approach.
How to use it: Rank stocks by this metric from highest to lowest to find the most capital-efficient businesses. Greenblatt pairs it with his Earnings Yield to build the magic formula screen.
Gross Margin
Chartable: Yes
Unit: Percentage
Revenue minus cost of goods sold, divided by revenue. Shows how much of each sales dollar remains after direct production costs.
General benchmarks: Above 50% indicates strong pricing power; 20–50% is typical for manufacturing; below 20% is common for low-margin businesses. Always compare within the same industry.
Gross Profit / Total Assets
Chartable: Yes
Unit: Ratio
Gross Profit divided by Total Assets. Research by Professor Novy-Marx found this metric has predictive power comparable to Price/Book for identifying future outperformers. Higher is better.
Incremental ROIC (3‑Year) (Ultimate)
Chartable: Yes
Unit: Percent
Return on the incremental capital deployed over the past three years, calculated as the change in NOPAT (net operating profit after tax) divided by the change in invested capital over the same period. While current ROIC shows whether the business has a moat, incremental ROIC reveals whether that moat is widening or narrowing.
How to use it: A company with high ROIC but declining incremental ROIC is deploying new capital into progressively worse opportunities. Rising incremental ROIC signals improving competitive position.
Net Margin
Chartable: Yes
Unit: Percentage
Net income as a percentage of total sales — bottom-line profitability.
General benchmarks: Above 15% is strong; 5–15% is typical; below 5% means thin profitability.
Operating Margin
Chartable: Yes
Unit: Percentage
Operating income as a percentage of net sales. Measures how efficiently the company converts revenue to operating profit.
General benchmarks: Above 20% is strong; 10–20% is typical; below 5% leaves little cushion for downturns.
Research Margin (Premium Plus)
Chartable: Yes
Unit: Percentage
Research and development spending as a percentage of sales.
General benchmarks: Tech and pharma typically spend 10–25% of sales on R&D. Very low may indicate underinvestment in future growth.
Return on Assets
Chartable: Yes
Unit: Percentage
Net income as a percentage of total assets (ROA). Shows how effectively the company uses all assets to generate profit.
General benchmarks: Above 10% is excellent; 5–10% is solid; below 5% is common for capital-intensive industries.
Return on Equity
Chartable: Yes
Unit: Percentage
Net income as a percentage of shareholders’ equity (ROE). Shows profit generated per dollar of equity invested.
General benchmarks: Above 15% is strong; 10–15% is average; below 10% is weak. Check Debt/Equity — high leverage inflates ROE.
ROIC
Chartable: Yes
Unit: Percentage
Return on Invested Capital measures how efficiently a company generates returns relative to all capital invested (equity + debt). The single best measure of business quality.
General benchmarks: Above 15% is excellent; 10–15% is solid; below the company’s WACC means value destruction. Compare to WACC using the ROIC-WACC Spread metric.
ROIC Consistency (5‑Year) (Ultimate)
Chartable: Yes
Unit: Percent
Standard deviation of annual ROIC values over the trailing five years. Two companies with the same average ROIC are fundamentally different if one ranges 14%–22% and the other 5%–30%. Low standard deviation combined with high ROIC identifies durable compounders with stable competitive advantages.
General benchmarks: Below 3 percentage points is very stable; high ROIC with high standard deviation indicates a cyclical business that may be at a peak. Screening for ROIC above 15% and ROIC Consistency below 3% isolates the narrowest set of quality compounders.
ROIC‑WACC Spread (Ultimate)
Chartable: No
Unit: Percent
Return on invested capital minus weighted average cost of capital. The most fundamental question in corporate finance, expressed as a single number. A positive spread means every reinvested dollar earns more than its cost of capital, creating shareholder value. A negative spread means the company is destroying value regardless of reported earnings growth.
How to use it: Pairing with Incremental ROIC gives a complete picture of whether value creation is improving or deteriorating over time.
Selling General and Administrative Margin (Premium Plus)
Chartable: Yes
Unit: Percentage
Selling, general and administrative expense as a percentage of sales. A declining trend often signals improving operating leverage.
Sustainable Growth Rate
Chartable: Yes
Unit: Percentage
The maximum growth rate achievable without additional borrowing, calculated as ROE x (1 − Payout Ratio). If actual growth exceeds this, the company must take on debt or issue equity.
General benchmarks: Above 10% is strong self-funded growth capacity.