CI Review: Capital Cube – Fundamental Analysis on Demand

by on Jun 12, 2014

Capital_CubeCapital Cube is a powerful and innovative stock and ETF analysis platform that provides customers with comprehensive company analysis including on-demand fundamental research, portfolio evaluation, and screening tools for over 40,000 global equities and ETFs. There are plenty of options out there for investors or institutions who are simply looking for company data, and there are even more options for fundamental analysis on the top equities and ETFs. However, due to the nature of fundamental analysis, it is impossible for companies to provide insight on more than just a few thousand companies, because it would require a far too massive investment analyst team to dig deeper than that. What makes Capital Cube so unique, and valuable, is that it utilizes algorithmic analysis techniques to provide fundamental analysis, along with a host of other capabilities, for well over 40,000 companies world-wide.

While the platform does not provide any investment recommendations, it instead empowers investment ideas through in-depth analysis in four key aspects of a company:

  • Fundamental Analysis Relative to Peer Group – One of the most core functionalities of the Capital Cube platform is the dearth of fundamental analysis provided on each company, most of which is put into relative terms against the company’s peer group. This content includes, among other things, an overall Fundamental Analysis Score (0-100), ratings on a “one to four” star system (four stars being the highest) on individual fundamental components of a company, and in-depth analysis behind each individual component. The star ratings and accompanying in-depth analysis evaluate a company on a relative basis in nine key fundamentals – relative valuation, valuation drivers, operations diagnostic, earnings leverage, sustainability of returns, drivers of margin, growth expectations, capital investment strategy and leverage & liquidity. A host of additional peer analyses that come in the form of comparison charts and graphs are also offered that provide a side-by-side analysis of a company and their key competitors in a wide variety of areas, including key valuation items, profitability figures, efficiency ratings, growth figures, fundamental analysis, dividend quality, accounting red flags and likely corporate actions. Users can also easily customize the default peer group the company is being compared to, and all of the analysis will instantly update to reflect the new, customized peer grouping.
Capital Cube Peer Analysisis – Profotability

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Capital Cube Peer Analysis: Profitability

  • Accounting and Earning Quality – The accounting and earning quality information is very in-depth, includes an overview and is broken down into five components – Earnings: From Accounting or Cash Flow, Accounting Quality, Management of Reserves, Key Items Impacting Cash Flow and Supporting Tests and Analytics. The analysis includes a variety of charts and graphs that include comparisons versus the company’s peers. Additionally, the Capital Cube platform also provides star ratings for two key accounting and earnings metrics – account quality and management of reserves.

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Capital Cube Analysis Reports – Earnings Quality (Truncated)

  • Dividend Strength – One of the most unique aspects of the Capital Cube platform is that it provides users with a Dividend Quality Score, from 0-100. The dividend strength content includes a breakdown of what consists of a low, medium and high quality dividend, and on overview of the equity’s recent dividend history and quality. Like most of the content provided on the platform, the dividend strength content includes a variety of charts and graphs that include a peer comparison, and is broken down into two primary components – Dividend Yield and Payout and Dividend Coverage. The Capital Cube platform also provides star ratings for three key dividend strength metrics – Dividend Quality, Dividend Quality Trend and Dividend Coverage.

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Capital Cube Analysis Reports – Dividend Quality (Truncated)

  • Likely Corporate Actions – Corporate actions such as mergers, acquisitions, dividend changes and share buyback can cause a large fluctuation in an equity’s value. The Capital Cube platform provides a great selection of data on past and likely future corporate actions to help investors to make informed decisions on which equities to purchase or sell. The platform provides a high-level overview of the company’s corporate actions and features a multitude of charts and graphs that include peer analysis data on three primary corporate action types – Dividend Action, Share Buyback and M&A Action. The platform does not provide any star ratings relative to corporate actions, but does provide their opinion on whether the firm is likely to have any dividend action, equity action or M&A action.

Capital_Cube_Analysis_Reports_–_Corporate_Actions_(Truncated)

Capital Cube Analysis Reports – Corporate Actions (Truncated)

The platform’s stock screener is also of particular note, as it provides users with over 1000 data points that they can utilize to screen equities by. The stock screener also allows users to screen by a variety of fundamental analysis phrases and attributes unique to the Capital Cube platform. Users can screen investments by the Fundamental Analysis Score and the Dividend Quality Score that are provided for each applicable firm throughout the platform. Users can also screen by corporate action attributes, such as dividend action, equity actions and M&A action. Additionally, users can screen by using qualitative phrases such as “conservative accounting,” or “likely to increase dividends.”

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Capital Cube Stock Screener

While much of Capital Cube’s content and functionality is based around stock analysis, it also features an abundance of great ETF-focused resources that were recently added. The platform features an ETF analysis tool which leverages its stock analysis techniques to analyze all of the constituent stocks held within a given ETF to provide analysis on the ETF as a whole. Additionally, Capital Cube provides an ETF screener that is similar to the stock screener to help investors narrow down which ETF is appropriate for their portfolio.

Closing Thoughts

The Capital Cube online portal is a powerful platform that provides high quality analysis and screening capabilities for over 40,000 companies worldwide. More importantly, the platform fills in a key gap that exists on most other similar platforms, as it not only provides data, but high quality fundamental analysis for all of these companies. The platform also provides users with multiple ways to quantify this analysis and compare one company to another, including a Fundamental Analysis Score, Dividend Quality Score and a four-star rating system that provides ratings for a variety of key company metrics. Overall, the platform is a valuable resource for investors and investment firms alike, as it provides users with the information necessary to make informed equity and ETF investing decisions.