- Investment decisions are solely your responsibility. The information on Billiver is for educational and informational purposes only.
- Past performance does not guarantee future results. Always do your own due diligence and consider consulting a qualified financial advisor.
How to Analyze Stocks: Free Guide to ROE, Dividends & SEC Data
Billiver pulls financial data directly from SEC EDGAR filings — the same public documents that professional analysts use. This guide covers what you'll find on each company page and how to make sense of the numbers.
1. What You Can Find on Billiver
Billiver provides financial data sourced directly from SEC EDGAR filings. These are official documents that publicly traded companies are required to file with the U.S. Securities and Exchange Commission.
Available Features
ROE, ROA, Profit Margin, D/E Ratio
Up to 10 years of annual data
Form 4 filings: executive buy/sell activity
13F filings: top institutional holders
Dividend track record and growth rates
FCF, FCF Margin, Operating Cash Flow
Side-by-side industry peer metrics
Where a company stands in its sector
Key executives from SEC filings
Top customers and revenue concentration
Global entity structure from Exhibit 21
Key risks by sector from SEC filings
Business overview, headquarters, employees
Explore companies by GICS classification
2. Financial Metrics
Each company page on Billiver displays key financial metrics calculated from SEC filings. These metrics are grouped into profitability, financial health, and valuation categories.
ROE (Return on Equity)
Definition
ROE measures how efficiently a company uses shareholder investment to generate profits. It answers: "For every dollar shareholders have invested, how much profit does the company make?"
How It's Calculated
ROE = Net Income / Shareholders' Equity
For example, if a company has $10 million in net income and $50 million in shareholders' equity, the ROE is 20%.
Important Caveats
- High debt can inflate ROE by reducing the equity denominator
- Negative equity (from buybacks) makes ROE meaningless
- Capital-intensive industries typically have lower ROE than asset-light businesses
Investor Reference
Warren Buffett has noted that companies with ROE consistently above 20% often possess durable competitive advantages.
Source: 1987 Berkshire Hathaway Annual Letter
ROA (Return on Assets)
Definition
ROA measures how efficiently a company uses its total assets to generate profit, regardless of how those assets are financed (debt or equity).
How It's Calculated
ROA = Net Income / Total Assets
A company with $5 million net income and $100 million in total assets has an ROA of 5%.
ROE vs. ROA
ROE looks at returns relative to shareholder equity, while ROA looks at returns relative to all assets. A large gap between ROE and ROA often indicates heavy use of debt financing.
Profit Margin
Definition
Profit margin shows what percentage of revenue becomes profit after all expenses. It reveals how well a company controls costs relative to its sales.
How It's Calculated
Profit Margin = Net Income / Revenue
A company with $20 million revenue and $4 million net income has a 20% profit margin.
Important Caveats
- Margins vary widely by industry (software ~25% vs. grocery ~2%)
- One-time charges or gains can distort a single year's margin
- Compare within the same industry for meaningful insights
What is Return on Equity (ROE)? — Full guide with formula, examples, and sector benchmarks.
Debt/Equity Ratio
Definition
The Debt/Equity ratio compares what a company owes (debt) to what shareholders own (equity). It indicates how a company finances its operations and how much financial risk it carries.
How It's Calculated
D/E Ratio = Total Debt / Shareholders' Equity
A company with $30 million in debt and $100 million in equity has a D/E ratio of 0.3.
Important Caveats
- Banks and financial companies naturally have high D/E ratios
- Some debt is normal; zero debt isn't necessarily better
- Rapidly increasing debt may be a warning sign or growth investment
Investor Reference
Peter Lynch noted that a "normal corporate balance sheet has 75% equity and 25% debt" (D/E ratio of about 0.33). This varies significantly by industry.
Source: One Up On Wall Street (1989)
3. Financial History
Billiver provides up to 10 years of annual financial data for each company, sourced from SEC 10-K filings. This lets you see how a business has performed over time rather than relying on a single snapshot.
What to look for in financial history
Available Data
- Revenue and Net Income with year-over-year growth rates
- Total Assets, Total Debt, Total Equity
- Profit Margin, ROE, ROA over time
- Quarterly data for the last 8 quarters
Why Trends Matter
A single year can be misleading. A company might report strong ROE in one year due to a one-time gain. Looking at 5 or 10 years reveals whether performance is consistent or an outlier.
On Billiver
Each company page includes an annual financials table and a quarterly table. Growth rates are calculated automatically. You can also access dedicated history pages for revenue, profit margin, and ROE.
4. Insider Trading (Form 4)
When company executives, directors, or major shareholders buy or sell their own company's stock, they must report it to the SEC via a Form 4 filing. Billiver collects and displays this data on each company page.
How to read insider trading data
What is Form 4?
SEC Form 4 is a filing that "insiders" (officers, directors, and 10%+ shareholders) must submit within 2 business days of buying or selling company stock. This makes insider activity one of the most timely public data sources.
Transaction Types
- Purchase (P): Insider bought shares on the open market
- Sale (S): Insider sold shares on the open market
- Award (A): Shares granted as compensation (not a market transaction)
- Gift (G): Shares given away (not a market signal)
Why It Matters
Open-market purchases by executives can indicate confidence in the company's future. When multiple insiders buy simultaneously, it may be a stronger signal. Sales are more ambiguous since insiders sell for many personal reasons.
Important Caveats
- Many sales are pre-scheduled (10b5-1 plans) and do not reflect insider sentiment
- Awards and options exercises are compensation events, not buy signals
- Insider buying is generally a stronger signal than insider selling
On Billiver
Each company page shows a summary of recent insider activity (total purchases vs. sales), a chart of transaction trends, and a detailed table with insider names, titles, dates, and transaction values.
Data source: SEC EDGAR Form 4 filings. Read the full insider trading guide | Smart money signals guide
5. Institutional Ownership (13F)
Institutional investors managing over $100 million must disclose their equity holdings quarterly via SEC 13F filings. Billiver tracks the top 500 institutional holders and shows which institutions own shares in each company.
How to read institutional ownership data
What is a 13F Filing?
SEC Form 13F is a quarterly report that institutional investment managers with $100M+ in qualifying assets must file. It lists every equity position they hold, including share counts and market values.
What You'll See
- Investor name and type (mutual fund, hedge fund, etc.)
- Holdings value and share count
- Percentage of the investor's total portfolio
- Change type: NEW, INCREASED, DECREASED, or SOLD
Why It Matters
Tracking what large institutions buy and sell can reveal market consensus about a company. A wave of new institutional positions may indicate growing confidence. Conversely, widespread selling might signal concerns.
Important Caveats
- 13F data is delayed by up to 45 days after quarter-end
- Only long equity positions are reported (no short positions or options)
- Index fund holdings (Vanguard, BlackRock) reflect index composition, not active conviction
On Billiver
Each company page shows the top institutional holders. You can also visit individual investor pages to see their full portfolio holdings. Investor names link directly to their portfolio pages.
Data source: SEC EDGAR 13F filings. Read the full institutional ownership guide | Reading cross-signal data
6. Dividend History
For companies that pay dividends, Billiver shows up to 10 years of dividend history along with growth rates and special classifications like Dividend King or Dividend Aristocrat.
Understanding dividend data
What Are Dividends?
Dividends are cash payments a company makes to shareholders from its profits. Not all companies pay dividends. Growth companies often reinvest profits instead of distributing them.
Dividend Classifications
- Dividend King: 50+ consecutive years of dividend increases
- Dividend Aristocrat: 25+ years of consecutive increases (S&P 500 member)
- Dividend Achiever: 10+ years of consecutive increases
- Dividend Contender: 5+ years of consecutive increases
Key Metrics
- Dividend per share and year-over-year growth
- 5-year and 10-year CAGR (Compound Annual Growth Rate)
- Payment frequency (quarterly, monthly, etc.)
- Payout ratio (dividends as a percentage of earnings)
Important Caveats
- A high dividend yield may indicate a declining stock price, not generosity
- Companies can cut or suspend dividends at any time
- Payout ratios above 80% may not be sustainable long-term
Data source: SEC EDGAR filings; Dividend King/Aristocrat status per S&P Dow Jones. Read the full dividend investing guide | What is dividend payout ratio? | What is dividend yield? | Kings vs Aristocrats | Dividend growth rate | Ex-dividend date | Dividend safety | DRIP investing
7. Free Cash Flow
Free Cash Flow (FCF) represents the cash a company generates after accounting for capital expenditures. Many investors consider FCF a more reliable measure of financial health than net income because it's harder to manipulate with accounting choices.
Understanding free cash flow
How It's Calculated
FCF = Operating Cash Flow - Capital Expenditures
Operating cash flow comes from the company's core business. Capital expenditures are investments in property, equipment, and other long-term assets.
FCF vs. Net Income
Net income includes non-cash items like depreciation and stock-based compensation. FCF focuses on actual cash generated. A company reporting strong net income but negative FCF may be less healthy than it appears.
What You'll See on Billiver
- Latest FCF amount and FCF Margin (FCF / Revenue)
- Operating Cash Flow and Capital Expenditures
- FCF / Net Income ratio (earnings quality indicator)
- 5-year cash flow history
Important Caveats
- Growing companies often have negative FCF due to heavy investment
- FCF can be lumpy year-to-year, especially in capital-intensive industries
- Compare FCF margin to peers in the same industry
Data source: SEC EDGAR 10-K filings. Read the full free cash flow guide
8. Competitor Comparison
Financial metrics are most meaningful when compared to peers. Billiver shows companies in the same industry side-by-side so you can see how a company stacks up against its competitors on key metrics.
How to use competitor comparisons
What You'll See
- Industry peers based on GICS classification
- Side-by-side metrics: Profit Margin, Dividend Yield, ROE, and more
- Related companies from the same sector
- Dedicated comparison pages for deeper analysis
Why Compare?
A 15% profit margin might be excellent in grocery retail but mediocre in software. Comparing within the same industry provides the context needed to interpret metrics correctly.
Important Caveats
- Industry peers share a classification but may have different business models
- Company size can significantly affect metrics (large-cap vs. small-cap)
- Some companies operate across multiple industries
Classification: GICS (Global Industry Classification Standard). Read the full comparison guide
9. Understanding Percentile Rankings
On each company page, key metrics include a percentile bar showing where the company ranks within its sector. This gives you immediate context without needing to look up sector averages yourself.
How percentile rankings work
What Percentile Means
A percentile ranking of 80 means the company scores higher than 80% of companies in the same sector for that metric. The 50th percentile is the median.
How Billiver Calculates It
Billiver ranks all companies within the same sector for each metric, then calculates the percentile position. Rankings are shown only for sectors with 5 or more companies to ensure statistical relevance.
How to Interpret
- Higher percentile is generally better for profitability metrics (ROE, Profit Margin)
- For Debt/Equity, lower percentile (less debt) is often preferred
- Percentile shows relative standing, not absolute quality
10. Tips for Beginners
Financial data can feel overwhelming at first. These principles won't make you an expert overnight, but they'll help you avoid the most common mistakes as you get familiar with the numbers.
Compare Within the Same Industry
Different industries have different typical values for financial metrics. A tech company and a bank will have very different debt levels, for example. Always compare companies within the same industry for meaningful insights.
Look at Trends, Not Just Snapshots
A single year's data can be misleading. Look at how metrics have changed over time. Consistent performance over several years is generally more meaningful than a single exceptional year.
Numbers Don't Tell the Whole Story
Financial metrics are just one piece of the puzzle. Consider factors like the company's business model, competitive position, management quality, and industry trends. Numbers alone cannot capture everything that matters.
Understand What You're Looking At
Before making any investment decision, make sure you understand what each metric means, how it's calculated, and what its limitations are. If something seems too good to be true, investigate further.
New to investing? Read our complete 8-step guide for beginners
11. Price-Based Metrics
The following metrics require real-time stock prices, which Billiver intentionally does not provide. Our focus is on fundamental analysis using verified SEC EDGAR data.
Understanding these metrics is essential for value investing. Below, we explain each metric and show you how to calculate it yourself using data from Billiver combined with current stock prices from your broker or financial portal.
P/E Ratio (Price-to-Earnings)
What is P/E Ratio and why does it matter?
Definition
P/E ratio compares a company's stock price to its earnings per share. It tells you how much investors are willing to pay for each dollar of earnings.
How It's Calculated
P/E = Stock Price / Earnings Per Share (EPS)
For example, if a stock trades at $100 and earns $5 per share, the P/E is 20. This means investors pay $20 for every $1 of earnings.
Important Caveats
- Growth companies often have high P/E due to expected future earnings
- Negative earnings make P/E meaningless
- One-time gains or losses can distort P/E
Investor Reference
Benjamin Graham suggested that a P/E ratio should not exceed 15 for a stock to be considered reasonably priced. Market conditions have changed significantly since 1949.
Source: The Intelligent Investor (1949)
Calculate It Yourself
P/E = Current Stock Price / EPS
Billiver provides EPS data from SEC filings. Get the current stock price from your broker or a financial portal, then divide to find the P/E ratio.
P/B Ratio (Price-to-Book)
What is P/B Ratio and why does it matter?
Definition
P/B ratio compares a company's market value (stock price) to its book value (net assets). It shows how much investors pay for each dollar of the company's net assets.
How It's Calculated
P/B = Stock Price / Book Value Per Share
Book value = Total Assets - Total Liabilities. If a company has $10 book value per share and trades at $15, the P/B is 1.5.
Important Caveats
- Tech companies often have high P/B because value comes from intangibles
- Book value can be outdated (recorded at historical cost)
- Negative book value makes P/B meaningless
Investor Reference
Benjamin Graham suggested P/B should not exceed 1.5 for a margin of safety. He also combined P/E and P/B: their product should not exceed 22.5.
Source: The Intelligent Investor (1949)
Calculate It Yourself
P/B = Current Stock Price / Book Value Per Share
Book Value = Total Assets - Total Liabilities (available on Billiver). Divide by shares outstanding to get Book Value Per Share, then divide the current stock price by this value.
PEG Ratio (Price/Earnings to Growth)
What is PEG Ratio and why does it matter?
Definition
PEG ratio adjusts the P/E ratio for the company's expected growth rate. It helps determine if a stock's price is justified by its growth potential.
How It's Calculated
PEG = P/E Ratio / Annual Earnings Growth Rate
If a company has P/E of 30 and is expected to grow earnings at 30% per year, the PEG is 1.0.
Important Caveats
- Growth estimates are uncertain and often don't materialize
- Different analysts use different growth periods (1-year vs. 5-year)
- Not useful for slow/no growth companies (extremely high PEG)
Investor Reference
Peter Lynch suggested PEG below 1.0, ideally around 0.5, indicates potential undervaluation. This assumes accurate growth projections.
Source: One Up On Wall Street (1989)
Calculate It Yourself
PEG = P/E Ratio / Annual Earnings Growth Rate
First calculate P/E (see above), then divide by the expected annual earnings growth rate. Growth estimates can be found in analyst reports or calculated from historical earnings trends on Billiver.
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