Deep Fundamental Analysis
To provide context and veracity for the use of Sentiment, Valspresso’s Automated Stock Analyst performs deep financial analysis of publicly traded U.S. companies. This context is important to manage your strategy’s risk. Let’s say that one of your strategy’s holdings is a stock with a high expected earnings growth. If that company’s financial quality is poor, it is less likely to achieve or sustain that growth and therefore should be considered riskier. In that case, additional risk mitigation measures would need to be employed to achieve investment objectives.
Our system automatically assesses profitability, solvency, and management by inspecting each public company’s financial statements filed with the Securities and Exchange Commission (SEC) and classifies the quality of companies’ financials as High, Medium, or Low.
Financial statements tell a complicated and nuanced story, which is often missed when simply looking at the top and bottom lines. Valspresso’s Automated Analyst looks deeply at related information on the financial statements to cross check those high-level values to compose a holistic understanding of the health of the company. The factors of financial health underpin the long-term success of any business. Regardless of the size of companies or the industry sector in which they operate, those health factors are relevant. The automated assessments are applied uniformly to all companies in all sectors, and across all market conditions. Valspresso covers all publicly traded U.S. companies and assesses their financial health every day.
On a daily basis, the software analyzes the financial statements of publicly-traded U.S. companies based on three questions:
- 1. Is the company profitable from its core operations?
- 2. Can the company pay its bills from cash on hand?
- 3. Is the company structured to reward investors?
The 3 simple questions underpin the long-term success of ANY business. Regardless of the size of the company or the industry sector in which they operate, those 3 simple questions are relevant. The 3 simple questions are applied uniformly to all companies in all sectors across all market conditions.