Financial Quality, Capital Allocation & Risk
Use these when you want to test earnings quality, dividends, balance sheet resilience, or scenario sensitivity.
Are the Earnings Real?
Are [Company]'s earnings as good as they look? Check whether profits are backed by cash flow, and explain any signs that earnings quality may be strong, weak, or misleading. Include a line chart comparing net income, operating cash flow, and free cash flow over time.
Dividend Sustainability & Capital Allocation
Evaluate the sustainability of [Company]'s dividend. Look at payout ratios, free cash flow coverage, balance sheet strength, and capital allocation, then conclude whether the dividend is secure, at risk, or likely to grow. Include a summary table of the key dividend coverage and capital allocation metrics.
Balance Sheet & Financing Risk
Analyze the evolution of [Company]'s balance sheet, leverage, liquidity, and financing activity. Deliver a concise risk memo showing whether financial risk is increasing, stable, or improving. Include a table of the key balance sheet and debt metrics.
What Has to Go Right?
What has to go right for [Company] from here, and what could go wrong? Lay out a bull, base, and bear case, and explain which assumptions matter most. Include a bull, base, and bear scenario table.
Could This Be a Compounder?
Could [Company] become a long-term compounder? Explain what would allow it to keep growing and reinvesting at high returns, and what could break that story.
Can It Survive a Downturn?
Stress-test how resilient [Company] would be in a weaker economy. Look at debt, cash flow, margins, and balance sheet strength, then explain whether the business could handle a serious slowdown without major damage. Include a downside scenario table.