Generating Statistical Summary and Sector/Industry Reports

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Last month, we showed how to use Stock Investor Pro to create portfolios that are unique lists of stocks. Portfolios can be generated from existing screens or by manually selecting companies. In this month’s Stock Investor News, we discuss how you can generate reports to gain valuable insights into the companies as a group. We take you through the basic process of how to run the statistical summary, sector and industry reports on a defined group of stocks.

Generating a Statistical Summary Report

There are two main ways to access the report menu. Once your preferred list of companies is generated and loaded as the active stock notebook, you can either click File from the menu bar and then select Print from the dropdown list, or you can simply click the printer icon at the top. This will launch a small window titled Available Reports with a number of report options. Generally, you would choose to select Statistical Summary - Active Notebook, which will limit the calculations to just the active list of companies you created. Selecting Statistical Summary - Entire Database will run the calculations on the entire database of companies and will not be limited to just your selected companies. Statistical Summary - One Field by Industry allows you to run a report on a single field (for example, cash flow Q4) across industries. As mentioned, the most commonly used statistical summary is for the active notebook, and this is the one we will move forward with.

Once the report is selected, click Preview. This brings up a list of the available views, allowing you to choose the group of fields you want to display. We most commonly select the Multiples view when we do our research, but you can choose whichever view is most appropriate for your needs. Highlight a view and click Ok. A preview window will launch showing the summary statistics for your list of companies. The Multiples report shows data such as price-earnings ratios (PE), price-to-book ratios (Price/Book), price-to-sales ratios (Price/Sales) and price-to-cash-flow ratios (Price/CFPS) over various periods. The report will show the median, average, standard deviation, high and low for each field as well as the number of companies included in the sample. You can print the report if you wish save and do further research on these statistics.

Generating a Sector or Industry Report

Generating a sector or industry report starts again with selecting Print either via the file menu or the printer icon. There is no need to load a list of companies in this case, as the report will encompass a particular industry or sector. At the reports window, select Industry Medians and click Preview. A second list window will open up. Below the list are two options: sectors or industries. By clicking one or the other, the list will change in the window. For example, clicking the button next to sectors brings up a list of the broad sectors such as basic materials, energy, health care, etc. Selecting the industries list brings up the more specific industry groups such as advertising, airline, beverages, etc. Select whichever of the two is appropriate for your research, and then the industry or sector that you are interested in gathering data about. Finally, click Ok and the Industry Median report will be generated in a new window. Common data points shown include multiples and growth rates for the current year, one year ago, and averages over three years, 5 years and seven years, along with profitability, liquidity, debt management and asset management ratios. Again, you can print the report in order to do further research on it.

Within Stock Investor Pro, generating reports, either a statistical summary on a select group of companies or reports showing sector and industry medians, can be a boost to your research and provide unique insights not available to non-subscribers.