Skip to main content

Profit Rating

Overview​

The Profit Rating profile colors the market by profitability quality. The rating evaluates each company's profit margin and return on equity relative to every other company on the platform, considering after-tax margin growth over the past three quarters along with ROE and before-tax margin growth over up to five years, on a trailing four-quarter basis.

Grouped by sector and industry and sized by market cap, this is the map of business quality: companies that turn revenue into profit efficiently and keep improving at it. These are the names that tend to compound, defend their valuations in downturns, and reward patience.

info

Ratings run from 1 to 99, with 99 indicating the highest profitability performance. The map updates in real time.

Strategy Focus​

  • Locate the market's most profitable, capital-efficient businesses
  • Spot industries with structurally strong margins versus commodity-like groups
  • Find margin-expansion stories, companies whose profitability is improving quarter over quarter
  • Build quality-first watchlists for swing and position trades
  • Screen defensively: high profitability is the classic downturn cushion

Map Configuration​

  • Main Category: Sectors
  • Sub Category: Industries
  • Box Size: Market Capitalization ($)
  • Box Color: Profit Rating

Metrics Behind the Map​

  • Market Capitalization ($): The total dollar value of a company's outstanding shares, weighting the map like the real market.
  • Profit Rating: Evaluates profit margin and return on equity against all companies on the platform, considering after-tax margin growth over the past three quarters plus ROE and before-tax margin growth over up to five years on a trailing four-quarter basis. Rated 1 to 99, with 99 the strongest.

Practical Use Cases​

  • Build a quality core watchlist from the deepest-colored boxes for longer-term positions
  • Compare members of the same industry to find who actually owns the margins
  • Check speculative names here before sizing up: weak profitability means weak downside support
  • Combine with Sales Rating to find companies growing revenue and converting it to profit
  • Use with EPS Rating to identify the market's complete fundamental leaders