MoatwareMethodology
How Quantitative Analysis Works
Moatware turns financial filings into clear, comparable scores across valuation, balance-sheet health, profitability and growth so investors can compare hundreds of companies on the same yardstick.
What is Quantitative Analysis
The quantitative lens of Moatware focuses on the hard numbers: how cheap is the stock, how solid is the balance sheet, how profitable is the business, how fast is it growing. We pull the inputs from public filings and condense them into comparable scores.
Every score is decision-support, not a recommendation. The goal is to surface what's worth a deeper look, not to replace your own judgement.
The Framework
Four financial dimensions
Every stock is evaluated across four dimensions that together describe how the business looks on the balance sheet and the income statement. The number on each card is its weight in the overall financial score.
Weight 30%
Valuation
Price relative to earnings, assets, enterprise value and free cashflow. Cheap or expensive measured the way long-term investors care about.
Weight 25%
Financial Health
Balance-sheet strength: liquidity, leverage and interest coverage. How well the business can take a hit and keep operating.
Weight 25%
Profitability
Margins, returns on capital, and cash conversion. How efficiently the business turns revenue into real cash earnings.
Weight 20%
Growth
Top-line, bottom-line and cashflow growth, weighted by quality. Durable growth, not a single good quarter.
The Scale
How we score
From rating to display score
Each subdimension is rated on a 1–5 scale by our analysis pipeline. We then map that raw rating to a 0–100 display score using a simple linear curve (raw / 4.7 × 100), so 5.0 ≈ 99 and 4.0 ≈ 85. The upper band stays legible without clamping.
How dimensions roll up
Subdimension scores roll up to a dimension rating using subdimension weights. Dimension ratings then roll up to the overall rating using the dimension weights shown above. Every score you see is auditable back to its inputs.
Six financial tiers
| Tier | Score | What it means |
|---|---|---|
| Elite | ≥ 90 / 100 | Top of the scale across every dimension. A rarefied subset of Strong financials. |
| Strong | ≥ 80 / 100 | Exceptional fundamentals: cheap or fairly priced with healthy balance sheet, margins and growth. |
| Solid | ≥ 70 / 100 | Healthy financials with meaningful depth and few weak spots. |
| Average | ≥ 60 / 100 | Mixed signals: respectable in some dimensions, mediocre in others. |
| Fair | ≥ 45 / 100 | Weak fundamentals. The business may still operate but several metrics raise flags. |
| Weak | < 45 / 100 | Poor financial profile across most dimensions. Heightened risk. |
The Network
The Moatware family
Six angles on the same stock. Moatware focuses on qualitative moat. Five sister sites cover the rest.
Qualitative
Qualitative Analysis
Moat analysis: business model, competitive advantages, management and risks.
Quantitative
Quantitative Analysis
Financial metrics: valuation, financial health, profitability and growth.
Dividend
Coming soonDividend Analysis
Yield, growth, coverage and stability for income-focused investors.
Technical
Coming soonTechnical Analysis
Price action, momentum and trend signals for traders timing entries and exits.
Growth
Coming soonGrowth Analysis
Top-line acceleration, reinvestment runway and TAM for growth-style investing.
Insiders
Coming soonInsider Analysis
Insider transactions and institutional ownership: what people closest to the business are doing.
The Fine Print
Methodology and limits
Data sources
Public filings, market data and structured reads of management commentary. Refreshed each reporting cycle.
Refresh cadence
Scores are recomputed quarterly. Tier labels are sticky: they only flip when the underlying rating crosses a threshold, so noise stays low.
Subjective by design
Moat is a qualitative concept; we apply a consistent rubric, but reasonable analysts can reach different conclusions on edge cases.
Not investment advice
Scores are decision-support, not recommendations. Always do your own research before buying or selling.
Ready to dig in?
Browse the directory or jump straight to a curated wide-moat list.