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Benchmark

The Benchmark section allows you to compare your selected company's performance against its peers, giving you valuable context for your investment analysis.

Getting Started with Benchmarking​

When you navigate to the Benchmark section, you'll find a powerful set of tools for comparing your selected company against others in the same industry and beyond.

Benchmarking Options​

The Benchmark section offers several analysis options to help you understand how your company performs relative to its peers.

Benchmark Options

Each benchmarking option provides different insights:

  • Revenue Analysis: Compare revenue growth and trends across companies
  • Profitability Analysis: Evaluate profit margins, ROE, ROA, and ROIC
  • Liquidity and Solvency: Assess financial health through liquidity and debt metrics
  • Operational Efficiency: Compare efficiency metrics like asset turnover and inventory management
  • Capital Structure: Analyze debt-to-equity ratios and capital allocation
  • Market Valuation: Compare valuation multiples like P/E, EV/EBITDA, and P/S

You can also select different time periods (Annual, Quarterly) and data ranges (Last 3 Years, Last 5 Years, Last 10 Years) to customize your analysis.

Peer Selection​

Before diving into the analysis, you'll need to select which companies to benchmark against.

Peer Selection

Selecting Peers​

The system provides several ways to manage your peer group:

  1. Manual Selection: Choose from a list of companies, with up to 10 peers allowed
  2. Default Peers: Use the "Set Default" button to quickly select the system-recommended peers
  3. Save Peers: Save your custom peer group for future use
  4. Include Main Ticker: Toggle whether to include your main company in the benchmark statistics

Saved Peer Groups​

Once you've created a peer group you find useful, you can save it for quick access in future sessions. This is particularly helpful when you have specific companies you regularly compare.

Benchmarking Analysis Options​

Revenue Analysis​

The Revenue Analysis option allows you to compare revenue growth and trends across your selected peer group.

Revenue Analysis

This analysis includes:

  • Revenue Trends Over Time: Track absolute revenue figures across multiple periods
  • Year-over-Year Revenue Growth: Compare percentage growth rates
  • Average Growth Lines: See how each company performs against the peer average

Profitability Analysis​

The Profitability Analysis option helps you evaluate how efficiently companies generate profits from their operations.

Profitability Analysis

This analysis includes:

  • Margin Comparison: Compare gross margins, EBITDA margins, operating margins, and net margins
  • Return Metrics: Evaluate Return on Equity (ROE), Return on Assets (ROA), and Return on Invested Capital (ROIC)
  • Trend Analysis: Track how profitability metrics change over time

Profitability Trends

The trend analysis allows you to select specific metrics (like Gross Profit Margin or Return on Equity) and track them across multiple periods, helping you identify improving or deteriorating performance.

Liquidity and Solvency​

This option helps you assess the financial health and stability of companies through key liquidity and debt metrics.

Liquidity and Solvency

The analysis includes:

  • Liquidity Ratios: Current ratio, quick ratio, and cash ratio
  • Solvency Metrics: Debt-to-equity, nd interest coverage
  • Comparative View: See how your selected company's financial health compares to peers

Operational Efficiency​

The Operational Efficiency option evaluates how effectively companies utilize their assets and manage their operations.

Operational Efficiency

This analysis includes:

  • Asset Turnover: How efficiently companies generate revenue from assets
  • Inventory Turnover: How quickly inventory is sold and replaced
  • Days Sales Outstanding: How efficiently companies collect receivables
  • Cash Conversion Cycle: The time it takes to convert investments in inventory back into cash

Capital Structure​

The Capital Structure option analyzes how companies finance their operations and assets.

Capital Structure

This analysis includes:

  • Debt-to-Equity Ratio: The proportion of debt versus shareholders' equity
  • Debt-to-Assets Ratio: The percentage of assets financed by debt
  • Interest Coverage Ratio: The ability of a company to meet its interest obligations
  • Cash Flow to Debt Ratio: The ratio of cash flow from operations to total debt
  • Net Debt to EBITDA: The ratio of net debt to EBITDA

Market Valuation​

The Market Valuation option compares various valuation multiples to help you understand how the market prices each company.

Market Valuation

This analysis includes:

  • Price Multiples: P/E ratio, P/S ratio, P/B ratio
  • Enterprise Value Multiples: EV/EBITDA, EV/Revenue, EV/FCF
  • Dividend Yield: The ratio of dividends paid out to shareholders

Market Valuation Trends

The trend analysis shows how valuation multiples have changed over time, helping you identify if a company is becoming more or less expensive relative to its peers.

Bubble Chart Analysis​

The Bubble Chart provides a powerful multi-dimensional view of your peer group, allowing you to compare three metrics simultaneously.

Bubble Chart

In this visualization:

  • X-Axis: Represents one financial metric (e.g., Revenue Growth)
  • Y-Axis: Represents a second metric (e.g., Operating Margin)
  • Bubble Size: Represents a third metric (e.g., Market Cap or Return on Equity)
  • Red Border: Indicates negative values for the bubble size metric

This chart helps you quickly identify companies that excel in multiple dimensions. For example, you might look for companies with high growth (x-axis) and high margins (y-axis), with bubble size representing efficiency or returns.

Using Benchmarking Effectively​

Here are some tips to get the most out of the Benchmark section:

  1. Choose Relevant Peers: Select companies that are truly comparable to your main company
  2. Focus on Key Metrics: Identify the most important metrics for your investment thesis
  3. Consider Multiple Time Periods: Look at both short-term and long-term performance
  4. Combine Different Analyses: Use multiple benchmarking options to get a comprehensive view
  5. Look for Trends: Pay attention to how relative performance is changing over time

The Benchmark section is designed to give you the context you need to properly evaluate your selected company's performance and competitive position in the market.