Five pillars, scored from the filings, before anyone mentions a price.
Quality is not one number in a filing — it is several unrelated things that a good business tends to have at once. Each pillar is scored from 0 to 10 against sector-aware benchmarks, so a capital-heavy utility is not judged by a software company's margins.
How much profit the company generates from its capital and sales.
The company's ability to service debt and meet its obligations.
How fast revenue, earnings and cash flow are compounding.
How well assets and earnings convert into cash and output.
How stable and consistent results have been over time.
Five pillars scored from reported financials, each 0 to 10 against sector-aware benchmarks, rolled into one reading you can compare across companies.
Open a pillar and the metrics behind it are there — what each one measures, why it matters and how this company scores on it.
Quality is half the question. Price the company with a DCF you control, then keep it on a watchlist with a margin-of-safety target so you hear about it when the price catches up.
Financial data by Twelve Data. Scores are computed by Lemma Analysis from reported financials.
A systematic reading of how good a business is, separate from what it costs. Ours scores five pillars — profitability, solvency, growth, efficiency and predictability — from reported financial statements, each on a 0 to 10 scale, and weights them into one overall number.
Reported company financials from our data provider. Nothing in the score comes from share price, analyst targets, sentiment or forecasts, which is why it moves with filings rather than with the market.
No. A good business bought at the wrong price is still a bad purchase, and the score is deliberately blind to valuation. Use it to decide which companies deserve the work, then value them.
Yes. Quality scores are available on the free plan for every company we cover, along with the metrics behind each pillar.
It moves with the financial statements, so in practice quarterly. Each public page states the date its score was last recomputed.
Educational only — not investment advice.
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