Run a Checklist

What does Mkt Cap £m mean?

Market Capitalisation is an indicator of the size of the company, specifically the total market value of the company's shares. It is calculated by multiplying the current Share Price by the current number of Shares Outstanding. This value is standardized into £ Sterling and it is updated each night (i.e. it is not 15 minute delayed data).

Stockopedia explains Mkt Cap £m...

Market Capitalisation only takes into account the value of the company's shares (equity), it ignores the amount of debt a company may have taken on and therefore isn't the best indicator of the company's size. The Enterprise Value adds the net debt to the Market Cap and is a better indicator of the minimum amount that an acquiring company may have to pay to buy the firm outright.

What does Op Profit mean?

Operating Profit - or Operating Income - is a measure of a company's earning power from ongoing operations, calculated as the difference between operating revenues and operating expenses. When a firm has zero non-operating income, then operating income is equal to EBIT (earnings before deduction of interest payments and income taxes).

What does Op Profit 1y ago mean?

This is Operating Income - 1 year ago, Reporting Currency

What does Op Profit 2y ago mean?

This is Operating Income - 2 years ago, Reporting Currency

What does Op Profit 3y ago mean?

This is Operating Income - 3 years ago, Reporting Currency

What does Op Profit 4y ago mean?

This is Operating Income - 4 years ago, Reporting Currency

What does Op Profit 5y ago mean?

This is Operating Income - 5 years ago, Reporting Currency

What does ROE % mean?

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

Stockopedia explains ROE %...

Widely used by investors, the ROE ratio shows the return being generated for every pound of equity on the balance sheet. It should be thought of as the 'internal return' that the company generates, and should not be mistaken with the market returns that shareholders may attain.

It varies by industry but ROEs of 15% or over are usually considered desirable. High ROE numbers sustained over the long term may indicate a company has a 'sustainable competitive advantage'. Such companies tend to sell at higher valuation multiples.

The impact of leverage is one of the disadvantages of focusing on ROEs as it can skew ROE upwards - an alternative is to look at Return on Capital Employed.

What does ROE % PTTM mean?

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

Stockopedia explains ROE % PTTM...

Widely used by investors, the ROE ratio shows the return being generated for every pound of equity on the balance sheet. It should be thought of as the 'internal return' that the company generates, and should not be mistaken with the market returns that shareholders may attain.

It varies by industry but ROEs of 15% or over are usually considered desirable. High ROE numbers sustained over the long term may indicate a company has a 'sustainable competitive advantage'. Such companies tend to sell at higher valuation multiples.

The impact of leverage is one of the disadvantages of focusing on ROEs as it can skew ROE upwards - an alternative is to look at Return on Capital Employed.

What does ROE % 2y Ago mean?

Return on equity reveals how much profit a company earned in comparison to the total amount of shareholder equity found on the balance sheet. The DuPont formula is a common way to break down ROE into three important components. Essentially, ROE will equal the net margin multiplied by asset turnover multiplied by financial leverage.

Stockopedia explains ROE % 2y Ago...

Widely used by investors, the ROE ratio shows the return being generated for every pound of equity on the balance sheet. It should be thought of as the 'internal return' that the company generates, and should not be mistaken with the market returns that shareholders may attain.

It varies by industry but ROEs of 15% or over are usually considered desirable. High ROE numbers sustained over the long term may indicate a company has a 'sustainable competitive advantage'. Such companies tend to sell at higher valuation multiples.

The impact of leverage is one of the disadvantages of focusing on ROEs as it can skew ROE upwards - an alternative is to look at Return on Capital Employed.

What does P/FCF mean?

The price-to-free cash flow ratio (P/FCF) is a valuation method used to compare a companyÕs current share price to its per-share free cash flow. Free Cash Flow is calculated from the Statement of Cash Flows as Cash From Operations minus Capital Expenditures. This ratio is similar to price earnings, but omitting purely "paper only" expenses.

Stockopedia explains P/FCF...

Free Cashflow is the amount left over a company can use to pay down debt, distribute as dividends, or reinvest to grow the business.

This ratio is similar to Price to Earnings, but omitting purely "paper only" expenses. Some companies report high profits, but they can't turn those profits into cash! A company can't survive without cash, and if it can't generate it internally it will have to go to outside investors to support it, resulting in either share dilution or increased borrowing.

What does Op Mgn % mean?

Operating profit margin, also known as return on sales (ROS) is the ratio of operating profit (the amount that is left over after the variable costs of production such as wages, and raw materials have been paid) divided by sales. A healthy operating margin is required for a company to be able to pay for its fixed costs, such as interest on debt.

Stockopedia explains Op Mgn %...

A company's operating margin is most meaningfully compared against other companies in its own industry, as they will likely share similar cost structures. It is a good way to compares the quality of a company's activity to its competitors, specifically the company's pricing strategy and operating efficiency.

What does Net Mgn % mean?

Also known as Return on Sales, this value is the Net Income divided by Sales for the same period and expressed as a percentage. This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible.

Stockopedia explains Net Mgn %...

This is one of the best indicators of the company's efficiency because net profit takes into consideration all expenses of the company. Investors want the net profit margin to be as high as possible. Rising margins are seen as a positive signal although high margins do tend to attract the interests of competitors.