mrhappyasthma / IsThisStockGood

A tool for evaluating companies using the Rule #1 investing principles.
http://www.isthisstockgood.com
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StockRow's ROIC is inaccurate #63

Closed losgrandes closed 1 year ago

losgrandes commented 1 year ago

Data on StockRow API is either incomplete or off.

1st example is PE Ratio incompleteness discovered in https://github.com/mrhappyasthma/IsThisStockGood/pull/58#issue-1459521813 (solved by getting data from MSN Money) 2nd, more severe example is incorrect ROIC value.

Example: Ticker GOOG, ROIC for year 2021

ROIC value from StockRow: 35.02 [CURRENTLY USED] ROIC value from MSN Money: 31.88

I calculated ROIC myself first using Yahoo Finance data and then data from financial statement on sec.gov. ROIC value calculated from Yahoo: 31.22 ROIC value calculated from sec.gov: 30.9

Values I picked to calculate ROIC were: net income, total stockholder equity, long term debt and cash.

Discrepancy between Yahoo and sec.gov is caused by different long term debt. Former has 12.84B, latter 14.82B.

I suggest switching to ROIC calculation from Yahoo as 3.8% (or actually 4.12% if comparing to sec.gov data) discrepancy in ROIC is a real problem. Yahoo has ROIC for last the 4 years only, so 5-years avg could be calculated by using missing value for the 5th year from StockRow.