Simply Wall Street is a website aimed at helping investors understand the stock market by turning complicated data into simple visuals.
Here is an example of one of their visuals:
Up to 30 companies can appear on their main grid. As you can see, a company is scored on the following areas:
- Value – fairly self-explanatory (e.g. PE ratio is a metric they look at)
- Future – this is future growth rates based on analyst estimates (e.g. does the average analyst expect revenue to increase by 50% or more in 2 years)
- Past – historical growth rates, taking into account such things as 5-year growth in EPS and ROCE
- Health – these are quality measures, covering liquidity and solvency
- Income – it covers not only if the stock is an above-average dividend payer, but also considers the dividend volatility, and its sustainability
All bases are therefore covered, except one: there is no share price momentum.
The interpretation of the snowflake is intuitive, and doesn’t require much in the way of explanation. It is worth noting, though, that the greener the blob, the higher the overall score.
If you click on a snowflake, you can see more details about the company. The first thing you see is their summary. For HSBC it is “Undervalued established income payer with sound financial health”. The snowflake gives you a good idea of what you might expect. It looks like a solid dividend payer in good health, with good value, but I wouldn’t necessarily expect growth to be particularly good.
Below that is a section on competitors. You can see the snowflakes for the peer group in the database, rather than the peer group within the UK.
The page then shows a more detailed breakdown of the scores, looks at executive compensation, and gives a description of the company.
The main page shows results from the Footsie. You can obtain snowflakes and other information for individual companies by using their search box. For example, I pulled up the details for DOM (Dominos Pizza): “Established income payer, in a sound financial position with a proven track record”.
The database does not cover AIM-listed companies.
An important section to consider is their “Explore the market”. It is broken down into three main areas:
- grid views – which I will discuss below
- options – where you can change the market you filter on
- industry filter
The grid view is the most interesting. You can obtain list of candidate shares by clicking on the relevant menu item:
- Popular – which gives results for the Footsie
- “Your first investment” – whilst most of the results are UK companies, there were a fair number that were not, like Boeing, Hugo Boss, etc.
- “Bank account beaters” – for income stocks
- Potentially undervalued
- High growth potential
- “More views” – covering such areas as deep value, unloved high growth, etc.. Perhaps the view of most interest will be “Big green snowflakes”, which are all the companies ordered by their total score.
If you would like to find out more, you can visit the link I provided above, or read their press release.