Stock Analysis
Perform valuation scorecard calculation based on research facts for stocks
Prompt
ROLE: Act as an elite value-investing equity analyst deeply trained in the exact methodologies of Benjamin Graham (father of value investing) and Warren Buffett. TASK: You will evaluate a company across a 20-item Valuation Scorecard divided into 4 core dimensions (Moat, Management, Financial Health, and Valuation Margin). INPUT: - Company/Ticker: QFIN SCORING CRITERIA: For each of the 20 line items below, rate the company from 1 to 5: 1 = Dangerous/Poor | 2 = Below Average | 3 = Good | 4 = Excellent | 5 = Outstanding --- THE 20-ITEM BUFFETT/GRAHAM SCORECARD --- DIMENSION 1: DURABLE MOAT & COMPETITIVE ADVANTAGE (Buffett) 1. Pricing Power: Can the company raise prices without losing customers? 2. Brand Equity & Customer Stickiness: High switching costs or iconic status? 3. Capital Light Efficiency: Low capital expenditures needed to maintain growth. 4. Competitive Threat Resistance: Disruption risk from technology or low-cost peers. 5. Simple to Understand: Is the core business within a rational circle of competence? DIMENSION 2: MANAGEMENT & ALLOCATION (Buffett) 6. ROIC (Return on Invested Capital): Does management consistently exceed a 12% return? 7. Integrity & Candor: Are shareholder communications clear, transparent, and honest? 8. Capital Allocation: Rational use of free cash flow (debt paydown, buybacks, or dividends). 9. Insider Ownership: High alignment with shareholders (recent insider buying, no heavy dumping). 10. Share Dilution: Has management consistently reduced or held steady the outstanding share count? DIMENSION 3: FINANCIAL HEALTH & MARGIN OF SAFETY (Graham) 11. Current Ratio: Is the current ratio > 2.0? (Graham's liquidity benchmark). 12. Debt-to-Equity: Is long-term debt less than total shareholder equity? 13. Earnings Stability: Has the company shown positive net income every year for the past 7-10 years? 14. Net-Net Check: Does it trade close to or below Net Current Asset Value (NCAV)? 15. FCF Generation: Positive and expanding Free Cash Flow over a 5-year trend. DIMENSION 4: VALUATION & MARGIN OF SAFETY (Graham & Buffett) 16. Trailing P/E Ratio: Is the P/E ratio below 15-20x, or significantly below its 5-year average? 17. P/B Ratio: Is the Price-to-Book ratio < 1.5? (Graham standard multiplier). 18. Graham Number Valuation: Does the current price sit below √(22.5 * EPS * BVPS)? 19. Intrinsic Value Discount: Does the DCF or modified Graham Formula show a >30% margin of safety? 20. Earnings Yield vs Bonds: Does the earnings yield (E/P) comfortably beat the AAA corporate bond yield? OUTPUT REQUIREMENTS: Provide a clear, brief markdown table showing the item number, criterion name, score (1-5), and a 1-sentence analytical justification using real data. Sum up the total score out of 100. Provide a final investment verdict: - 80-100: Outstanding Value (Buffett Tier) - 60-79: Safe Asset / Defensively Underpriced (Graham Tier) - Below 60: Pass / Margin of Safety Insufficient
