As you know, I sent you the email shown below last week but never received the courtesy of a reply -- so I'll try it here:
I have often used your Quality and Value Scores as good metrics, but never the Growth Score.
This morning provides a good example of why:
BIG just reported earnings and the stock is tanking. Your Growth Score for them is B and here’s two of their 4 metrics:
Sales % Change TTM 0.1%
Sales 5 Yr +TTM CAGR % 0.2%
These sales numbers are anemic (below inflation rate), yet via your Growth Score Guide this is considered a positive growth metric. No way.
A +5% CAGR is much better growth than +0.2% (obviously), and your model needs to be nuanced enough to reflect that.
I hope you are open-minded when it comes to modifying/improving your metrics. If you are, I’d be happy to provide suggested Growth Score improvement thoughts.
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