- Established in 2002
- Parent Company, Newsgrade Corporation researched and developed proprietary
software designed to reveal the logical relationships between financial
statement data and stock price performance. This software examines, combines
and displays financial statement data in unique ways, allowing breakthrough
discoveries to be made.
- Software analyzes and monitors 1,801 data points for each of over 10,000
public companies, more than 200 industries and at least 12 sectors of the
- Strong intellectual property: Multiple patents-pending on technologies,
algorithms, formulas and processes, used for diagnosing public companies and
share price performance.
- Cash flow is a better leading indicator and is not as easily manipulated as EPS (earnings per share).
- Cash flow analytics reliability will give it precedence over all earnings based measurements such as EBIDTA, EBIT, EBITD, EBITA, Cash Earnings, CFPS and Pro Forma Cash Flow.
- Proprietary user-friendly and intuitive "OPS Diagnostics" interface software.
- Reliable, cost-effective way to determine how the core operations of a business are doing.
- Reconcile balance sheet and income statement without including investment or financing activities.
- Cash flow is an excellent indicator of how a company's fundamental business plan is working and reflects on how management deals with corporate problems and challenges.
- Access to objective historical OPS algorithms on over 7,000 public companies and 243 industries.
- Continuous cash flow (operational cash flow and free cash flow) monitoring and alerts on over 10,000 public companies including amended filings.
- Access to ongoing internal research being conducted by StockDiagnostics on companies, industries and sectors.
- Access to an automated system, which identifies those companies that report "cashless earnings". This can be an early warning signal to credit quality problems. System also identifies opportunities in the form of companies reporting positive cash flow anomalies with no earnings.
StockDiagnostics' Cash Flow Definitions:
Cash Flow From Operations defined:
Defined as Cash flow from operations or operating cash flow as found in the Cash Flow From Operations section of a company's Cash Flow Statement, which is filed quarterly with the SEC.
"OPS" is StockDiagnostics' acronym for "Operational-cashflow Per Share." Our "OPS" (Operational-cashflow Per Share) is derived from a corporations' actual quarterly or annual Cash Flow Statement. The specific section is entitled "Cash Flow used or provided by Operations." "OPS" is calculated by dividing a company's Cash Flow from Operations by the total number of shares outstanding.
Free Cash Flow defined:
Free cash flow is defined as cash flow from operations or operating cash flow plus or minus capital expenditures. "Capital Expenditures" is a line item, which can be found in the Cash Flow From Investments section of a company's Cash Flow Statement which is filed quarterly with the SEC.
EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) is calculated by taking Operating Income and adding or subtracting depreciation and/or amortization.
CFPS (Cash Flow Per Share) is calculated by dividing EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) by the total number of shares outstanding.
Are OPSTM and CFPS similar?
StockDiagnostics' "OPS" (Operational-cashflow Per Share) and CFPS are vastly different financial measures. "OPS" is derived from a line item in a corporations' actual quarterly or annual Cash Flow Statement. CFPS, is derived from EBITDA (or one of its derivatives) which is not a line item in a company's Financial Statement. OPS is based on actual accounting measures and CFPS is based on "creative" accounting measures. Fundamentally, any cash flow calculations based on EBITDA or CFPS do not reflect a company's true cash flow.
Our research findings on hundreds of failed and successful companies indicate that traditional earnings based metrics such as EPS, ROE, ROC, EBITDA, CFPS and even the PE multiple can be distorted by a company's generation of Cashless Earnings (positive EPS and negative OPS) or earnings-less cash (cash without earnings) anomalies. StockDiagnostics' ongoing research is committed to discovering, detecting and monitoring cash flow anomalies and other financial statement algorithms that can have an impact on share price performance.