Fundamental Charts
Create insightful charts using fundamental metrics and technical indicators.
Introduction to Fundamental Charts
Tables of fundamental data are valuable, but charts simplify the identification of trends and patterns. The Fundamental Charts feature in Portfolio123 is significantly more powerful than it might initially appear, thanks to its ability to leverage the platform's extensive function library. This article will explore various use cases and demonstrate why Fundamental Charts should be an essential component of your research process.
Navigation
Although the interface is designed to be intuitive, certain features may not be immediately apparent.
Prebuilt Expert Views
On the Fundamental Charts page, select the Browse button to explore dozens of prebuilt charts crafted by Portfolio123’s experts. These examples highlight the powerful capabilities of Fundamental Charts and encourage users to create customized charts that best suit their investment research process.
Take time to explore the predefined charts to gain a deeper understanding of Fundamental Charts’ capabilities. Selecting any metric opens the Edit Metric page, where you can review the formula used.
You can create a personal copy of any predefined chart by selecting the 'More Options' (three-dot) button and choosing Save As.
Examples
Use Case: Range
Below is the 'EPS Estimates' chart from the Expert Views. Let’s examine the first plot. The dark line represents the current quarter’s EPS estimate, derived from the Portfolio123 factor CurQEPSMean. The standout feature of this chart is the use of the Range Graph Type. The light purple area illustrates the range between the high and low EPS estimates for the current quarter on a given date.
To configure this in the chart, set the Graph Type to Range and use the formula CurQEPSHigh | CurQEPSLow.
The 'Price to Sales vs. 3Y' chart demonstrates another effective use of the Range Graph Type. This chart reveals that, at the time of writing, AMZN was near the top of its price-to-sales range compared to the prior three years.
The formulas used to create the chart above are:
Name | Formula | Graph Type |
|---|---|---|
Avg 3Y Price to Sales | FHistAvg("Pr2SalesTTM",156) | Line |
Price to Sales 3Y Range | FHistMin("Pr2SalesTTM",156) | FHistMax("Pr2SalesTTM",156) | Range |
Use Case: Rank over time
This chart displays Amazon’s Price-to-Cash-Flow rank compared to other stocks in its subsector and across all stocks.
The formulas used to create the chart above are:
Name | Formula | Graph Type |
|---|---|---|
Price to Cash Flow Rank vs SubSector | FRank("Pr2CashFlTTM",#SubSector,#Asc) | Line |
Price to Cash Flow Rank vs All Stocks | FRank("Pr2CashFlTTM",#All,#Asc) | Line |
Use Case: Industry Average
Comparing a company’s fundamental trends with the industry average is invaluable for assessing its competitive position within its sector. This chart shows that, over the past four years, the company’s return on equity (ROE) and operating margin have remained stable, while the average ROE and operating margins of other stocks in its industry have declined.
The formulas used to create the upper chart were:
Name | Formula | Graph Type |
|---|---|---|
Return on Equity % TTM | ROE%TTM | Line |
Industry Avg Return on Equity | ROE%TTMInd * | Line |
* Some factors do not have a related 'IND' factor. An alternative formula for ROE%TTMInd would be Aggregate("ROE%TTM", #Industry)
Also, we could use #Sector, #SubSector, #SubIndustry or #SP500 instead of #Industry.
Use Case: Compare to the S&P 500 Average
Investors often seek to compare a company’s fundamentals with the S&P 500 average. The average price-to-earnings (P/E) ratio for the S&P 500 can be calculated using the formula Aggregate("PEExclXorTTM", #SP500). By default, the Aggregate() function is not capitalization-weighted. To calculate the capitalization-weighted average price-to-earnings (P/E) ratio for the S&P 500, use the formula Aggregate("PEExclXorTTM",#SP500,#CapAvg).
The chart below compares NVIDIA's price-to-earnings (P/E) ratio to that of the S&P 500.
Use Case: Are growth stocks beating value stocks?
This example shows the one year return for the iShares S&P 500 Growth ETF (IVW) minus the return for the iShares S&P 500 Value ETF (IVE).
The formula used to create that area chart was:
Ret%Chg(251,0, GetSeries("IVW:USA")) - Ret%Chg(251,0, GetSeries("IVE:USA"))
This chart remains consistent regardless of the stock selected, as it is based solely on the one-year return difference between the iShares S&P 500 Growth ETF (IVW) and the iShares S&P 500 Value ETF (IVE).
Fundamental Charts FAQ
What universe do Fundamental Charts use?
Certain formulas in Fundamental Charts require a universe of stocks. For example, when analyzing IBM, using the formula FMedian("EarnYield", #SubSector) calculates the median Earnings Yield for all stocks within the same subsector as IBM. The Fundamental Charts feature automatically selects one of two universes based on the country of the selected stock.
Stocks Country | Universe used |
|---|---|
United States or Canada | North America Primary |
Europe | Europe Primary |
Do the prebuilt charts follow a color scheme?
Yes. Most charts are color-coded for quick interpretation:
Meaning | Color family | Example |
|---|---|---|
Higher is better | Green | Growth and profitability factors |
Lower is better | Red | Valuation ratios |
Non-directional | Blue/Purple | Price |
3-year average | Gray | Avg 3Y Price to Book Value |
Sub-Sector average | Lighter hue of directional color | Sub-Sector Avg Price to Sales |
Industry average | Gold | Industry Avg Price to Sales |
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