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Scorecard Update - New KPI
As I continue to learn, grow, and evolve as an investor, my decision making tools should do the same. I just finished adding a Free Cash Flow (FCF) metric to my Scorecard. This will provide deeper insight than earnings per share (EPS) and dividend yield. I have built a number of cases into my sheet to evaluate different combinations of FCF and Dividend Safety:

  • FCF Negative Case: FCF Negative = 0
  • "Safe" Dividend Case: FCF Positive & Total Dividend/FCF < 50% = 1
  • "Unsafe" Dividend Case: FCF Positive & Total Dividend/FCF > 50% = 0.5
  • ETF Case: Has Dividend, but no FCF = 1
  • No Dividend Case: FCF Positive, but no Dividend = 1

Some insight into the "brains" of the operation - from my Roth IRA Sheet:

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It took a number of days to try to work out all the IF statements and clean up some of the data inputs to make the Rank Score work...

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FCF is the most manual metric that I am now tracking. My plan is to transpose FCF from Koyfin, quarterly. If anybody has a way to automate or live-source from a website, it would be much appreciated!

Have a great weekend!

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