Sector Analytics

Chart Sector Value to Profitability

This scatter chart compares Book Yield to Return on Equity to help you pick interesting stocks to buy.

Book Yield is a measurement of value. It is ratio of firm book value divided by market cap. Return on Equity (ROE) is the ratio of a company's net earnings divided by its book value. Cheaper sectors have higher Book Yields while the most profitable sectors have the highest ROE. The stock market is a voting machine that pays up for profitability. This means that secors with higher ROEs are usually more expensive. This chart displays the trade off between sector cheapness and profitability.

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Industry Analytics

Industry Value to Profitability Company Comparison

This scatter chart compares Book Yield to Return on Equity to help you pick interesting stocks to buy. Click through sectors, industries and companies to generate a Hedgy Report.

Book Yield is a measurement of value. It is ratio of firm book value divided by market cap. Return on Equity (ROE) is the ratio of a company's net earnings divided by its book value. Cheaper companies have higher Book Yields while the most profitable companies have the highest ROE. The stock market is a voting machine that pays up for profitability. This means that companies with higher ROEs are often more expensive. This chart displays the trade off between company cheapness and profitability in a specific industry. In Hedgy Analytics pick a ticker from the chart to generate a Hedgy Report

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Hedgy Report

Artificial Intelligence Driven Investment Outlook

These dials are a set of company indicators displayed in a Hedgy Report on Walmart. You can view 2500 Hedgy Reports for more details.

Cheapness compares a firm's value compared to its industry competition. Profitability compares a firm's financial statement quality to its industry peers. Sentiment compares changes to analyst consensus of a firm with its competitors. Momentum is a guage of price returns and earnings growth. These four gauges help Hedgy determine a stock rating using artificial intelligence. The key to its success is recognizing that each industry has different performance drivers and incorporating this information in these gauges.

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ETF Sentiment

Compare Underlying Sell-Side Analyst Consensus Changes

This is an example of a single tool available to measure undelying market sentiment in different ETFs. Each ETF is composed of many company positions that contribute to the underlying price of the ETF. The sum of the weights of all ETF holdings is 100%. So to measure the the underlying ETF sentiment calculate the weighted sum of each firms market sentiment. In other words, an ETF's Positive Earnings Revisions is the position weighted Positive Earnings Revisions of the underlying stocks in the ETF. It is a bottom-up aggregation of each firms' market sentiment as measured by sell-side analysts. The number measures the proportion of increases of EPS estimates in the prior three months divided by the sum of the increases and decreases of EPS esimates by analysts in the same period. This ratio is a percent that ranges from 0 to 100 so that 50% signifies that half of EPS estimate changes have been positive. By aggregating postive estimate revisions for the ETF its possible to determine the ETF's bottom-up sentiment of its holdings. Vanguard Real Estate ETF has the most bearish outlook.

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Dividend Yield Sustainability

Compare ETF's Dividend Yield to Pay-Out Ratios

This is an example of one tool used to compare the underlying Dividend Yield of an ETF to the underlying Pay-Out Ratio. The Dividend Yield is a good proxy for how much the ETF will pay annually. Lower Pay-Out ratios indicate that the Dividend is sustainable over the long term.

An ETF's underlying Dividend Yield is the ETF position weighted Dividend Yield of the underlying stocks in the ETF. Dividend Yield is the ratio of Total Dividends per share to Price. It's how much a firm returns to each investor annually. ETF's Dividend Yield is determined by the dividends actually paid by the companies in the ETF. The Dividend Yield of the underlying companies in the ETF is the best gauge for the future Dividend Yield of the ETF. iShares Israel ETF has the lowest Dividend Yield while iShares Singapore ETF has the highest in this group of iShares Developed Country ETFs.

An ETF's Payout Ratio is the position weighted Payout Ratio of the underlying stocks in the ETF. It is a bottom-up aggregation of total dividends paid divided by the net income of each firm in the ETF. The number is a financial metric showing the proportion of earnings a company pays shareholders in the form of dividends, expressed as a percentage of the company's total earnings. The Payout Ratio is a key financial metric used to determine the sustainability of a dividend payment program. REITS Payout Ratio may be greater than 100% due to accounting for large depreciation in earnings and the requirement that dividends are atleast 90% of Net Income. For other sectors, it's unlikely that dividends are sustainable if the Payout Ratio is above 60%. iShares Israel ETF has the most sustainable Payout Ratio while iShares New Zealand ETF achieves the highest level in this group of iShares Developed Country ETFs.

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Trend

Compare ETFs' Fundamental and Technical Trends

This is another example of a tool available for analysis. It shows that the rolling positive return breadth of Japanese companies is improving as seen in EWJ, the iShare Japan ETF. An ETF's Positive YoY Returns Breadth is the proportion of the ETF's assets under management with positive returns in the prior year. The number meausures favorable breadth of ETF perfomance measured as a percent. Open the developed market toolkit to compare recent trends of other country ETFs.

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