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Investing guides

Clear explanations of the ratios and signals STKtracker uses. No unnecessary jargon, with practical examples.

Quality5 min read

What is ROIC and why is it one of the most valued quality metrics?

ROIC measures how much profit a company generates for every euro of capital it invests. We explain how to read it and why it separates great companies from the rest.

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Growth5 min read

How to interpret the PEG ratio: growth at a reasonable price

The P/E does not tell the whole story. The PEG adds growth to the equation to tell you whether you are paying a fair price for a company that is growing. Here is how to read it.

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Financial health4 min read

Net debt/EBITDA: when a company starts to become dangerous

Leverage is not bad in itself, but in excess it can sink a good company. The net debt/EBITDA ratio tells you how much room it has to breathe.

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Signals4 min read

Insider buying: what it signals when executives buy (and what it does not)

When executives buy shares of their own company with their own money, they send a signal. We explain how to read it without jumping to conclusions.

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Signals5 min read

Value trap vs. real opportunity: reading cheap without falling into the trap

Not everything that trades cheap is an opportunity. A value trap looks attractive on its ratios but hides a declining business. Here is how to tell them apart.

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Valuation5 min read

EV/EBITDA: what it is and how to value a company with it

EV/EBITDA is one of the valuation multiples professionals rely on most. We explain what it measures, why it sometimes beats the P/E, and how to read it.

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Financial health4 min read

Operating margin: the number-one financial-health factor

Operating margin reveals how much a company earns from its core business before interest and taxes. It is one of the best gauges of efficiency and pricing power.

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Cash flow5 min read

FCF yield: how to tell if a stock truly generates cash

Earnings can be dressed up; cash much less so. FCF yield measures how much free cash flow a company generates relative to its price. Here is how to read it.

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Quality5 min read

ROE vs ROIC: how they differ and which one to watch

ROE and ROIC sound similar but tell different stories. One can be inflated with debt; the other cannot. We explain when to use each.

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Growth4 min read

Earnings revisions: the signal that has historically tracked the price

When analysts raise or cut their earnings forecasts, the price has historically tended to follow. We explain what earnings revisions are and why they are worth tracking.

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STKtracker Indices5 min read

The Financial Health Index (ISF): what it measures and how to read it

The ISF sums up a company’s financial strength in a single grade: profitability, debt and cash generation. Here is what goes into it and how to read it.

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STKtracker Indices5 min read

The Growth Index (ICF): growing at a reasonable price

The ICF weighs not just how fast a company grows, but whether that growth trades at a sensible price. See what goes into it and how to read it.

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STKtracker Indices5 min read

The Quality Index (ICE): what sets a great business apart

The ICE measures the intrinsic quality of a business: return on capital, cash generation and margins. Here is what goes into it and how to read it.

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STKtracker Indices5 min read

The Turnaround Index (IST): looking for the inflection point

The IST tracks signs of a possible trend change in beaten-down companies: low valuation, recent improvement and insider buying. Here is how to read it.

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Educational and informational content. It does not constitute financial advice or a recommendation to buy or sell. Investment decisions are each user’s own responsibility.

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