Financial Metrics table

The Financial Metrics table provides a useful summary of financial information and ratios for a selected company over time and includes two years of forecast figures where available.

The table will appear once the user clicks on the ‘Financial Statements’ tab.

It groups the fields in six categories as explained below. The user is able to hide / maximize the full list of criteria under each section by clicking on the group names. You can also look at Annual & Interim periods or just Annuals by clicking on the 'Periods displayed' drop-down at the right-hand top corner.

 

1. Solvency

The section looks at a company’s Financial Health rating over the history of the company which is the cornerstone to Lincoln’s investing approach. Solvency measures the ability of a company to meet its long-term financial obligations, for instance, whether the company has too much debt relative to assets and/ cashflows.

2. Profitability

This section looks at the profitability measurements such as revenue, return on equity, return on assets, return on invested capital, net profit, earnings per share and their respective growth rates over time.

3. Value

The section displays various valuation measurements over time, including P/E, Price to NTA, Price to Sales etc.  

4. Income

The section assists income focused investors by providing crucial income ratios such as dividend per share, ex-dividend date, franking, payout ratio and dividend yield. The dividend yield can also be compared with that of the market over the historic and forward years and at present.

5. Liquidity

This section can be useful for all investors with market capitalization, number of shares on issue and daily average turnover over time.

6. Performance

The section provides the return on the stock over the last 1 year, 3 years and 5 years.

Note : For various ratios which use the share price, the share price used for the calculation is as of the end of the financial year

The glossary of these fields can be found at the bottom of this article.

The full screen of the financial metrics page is as below. 

Glossary of fields 

Return on Equity (%)

• Calculated by dividing normalized net profit after tax by the average shareholders’ equity
• This metric is a measure of the profitability of a company and the return shareholders receive on their investment. A higher figure is preferred although investors need to be mindful that ROE can be artificially inflated by debt, acquisitions or share buybacks.

Net Profit margin (%)

• Calculated by dividing normalized net profit after tax by the revenue.
• A higher margin suggests that the company has strong pricing power. Declining margins over time indicate that a company may be losing market share due to competitive pressures.

Revenue Growth 1 yr (%)

• The growth in revenue from year to year. Investors should be mindful of companies that grow artificially either through acquisitions or store rollouts because this can often lead to lower returns to shareholders in future years.

NPAT growth 1 yr (%)

• The growth in net profit from year to year. Investors need to be wary that this figure can often by artificially inflated through various accounting practices including the capitalisation of expenses or write-down on inventory. Acquisitions can also drive growth in NPAT.

EPS (c)

• Calculated by the NPAT by the weighted average of common shares.
• This indicates the portion of the company’s profit allocated to each share of stock.

EPS growth 1 yr (%)

• Calculated by dividing the total EPS growth for the year by the EPS from the previous year.
• This figure will be impacted by capital raisings which increase the number of shares on issue, Investors should look for positive earnings per share growth over time.

PE

• Calculated by dividing the share price of the company by the its normalized EPS.
• The figure represents the number of years a company will take to pay for itself. Companies with higher P/E multiples tend to be higher quality growth companies.

Industry Ave PE

• This figure is a market weighted average P/E of stocks within a sector and is useful in understanding how expensive a particularly stock is relative to its industry.

Market Ave PE

• This figure is the market weighted average P/E of stocks in the ASX300.

PEG

• Calculated by dividing the PE ratio by the forward EPS growth rate.
• A figure less than 1 suggests a company could be undervalued although investors need to be mindful that growth figures can be misleading, especially if companies a recovering from a low point in the cycle.

Price to NTA

• Calculated by dividing the stock’s share price by the net tangible assets per share (NTA)
• This figure is useful for companies with a large portion of tangible assets on their balance sheet, such as REITS and infrastructure.

 

Price to CF

• Calculated by dividing the stock’s share price by the operating cash flow per share.
• A useful valuation figure which accounts for the cashflow of the business which is more difficult to manipulate than earnings. Investors should note however that the this figure is not useful for many financial companies.

 

Price to Total Revenue

• Calculated by dividing the share price by total sales.
• A lower figure indicates higher revenue generated relative to share price however should be compared to companies within same industry.

Ex-Dividend Date

• The date in which a stock trades without the value of its dividend which is paid out to shareholders. Usually, the stock price will fall to the value of its dividend on this date.

DPS (c)

• Calculated by dividing the sum of dividends over a year by number of shares outstanding for that period.
• Indicates the amount per share in cents received by shareholders.

Dividend Payout Ratio (%)

• Calculated by dividing the dividend per share by its earnings per share.
• This is the proportion of dividends that is paid out through earnings. Income stocks tend to have high payout ratios because many of them are mature businesses with limited growth opportunities.

Dividend Yield

• Calculated by dividing the average dividend by the share price.
• This figure provides an indication of the % income a shareholder will receive on a particular stock over the year.

Gross Dividend Yield (%)

• The dividend yield after adding on the franking credits provided by the company.

Market Ave Gross DY (%)

• The market weighted average gross dividend yield of the ASX300 stocks. This figure is useful in understanding whether a stocks gross dividend yield is attractive.

Market Cap ($M)

• Calculated by multiplying a company’s shares outstanding by the current market price per share.
• This metric is the value of the total business.

Average Daily Volume Traded (000)

• Average number of shares traded per day over the last three months.

Average Daily Value Traded (000)

Average value of shares traded over the last three month period.