How to Read a 10-K After a Stock Screen
A 10-K is long because it has to be. After a stock screen, read the three statements, then the footnotes that can change the metric that put the company on your list.
- SEC filings
- 10-K
How to build a screen, read the filing behind a number, and compare companies on cash flow.
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A 10-K is long because it has to be. After a stock screen, read the three statements, then the footnotes that can change the metric that put the company on your list.
Free cash flow yield is free cash flow divided by market cap. It shows the cash a business generated relative to the price of the whole company, and it belongs next to the P/E ratio in a screen.
One strong quarter is easy to find and easy to reverse. Screen for revenue or earnings growth that shows up in several recent periods, and pair it with a check that the business is still funding itself.
A stock screen works when it asks one clear question. Here is a short process for choosing filters, requiring consistency, and saving the screen so you do not recheck it by hand.