Fundamental Analysis: Why Does It Go So Wrong?

Step by step fundamental analysis

Try to check headlines in some of investing media (blog or youtube channel). You will find articles like: “Why Nvidia rise 10% today” or “S&P500 down 5% due to job report.”. Or try to read conversations in the community like Reddit, ” Panasonic is battery stock due to its status as Tesla supplier.” We tell you, this is not fundamental analysis.

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Financial Ratio Analysis: What Adobe Gross Profit Margin Tell Investor?

Adobe stuns us with an 86% gross profit margin – exceeding even Apple, Amazon, Microsoft, and Google. Yet, in a contrast, its operating margin only at a 29% level. In 2019, The creator of Illustrator generates a 9.5 B gross profit margin but only 3.27 B converted as operating margin. The largest cost of software maker is not its software making or research. What does it mean for shareholders? We try to track this financial ratio layer by layer, from revenue to earning, from production to marketing strategy.

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