A practical guide to the key metrics and concepts used in JADE rankings.
In JADE: The only Valuation component that updates every trading day. When a share price falls, valuation ratios drop and the stock becomes relatively cheaper vs. peers.
In JADE: Scored by percentile within the sector — lower P/E vs. peers means a higher Valuation score.
P/E doesn't work for loss-making companies. A low P/E alone says nothing about business health.
In JADE: Especially relevant for banks, industrials, and property companies.
For asset-light companies (software, pharma), book value can appear low even when real value is high.
In JADE: Harder to manipulate than reported earnings. Companies with low P/FCF vs. sector peers receive a higher Valuation score.
For capex-heavy businesses in investment cycles, FCF can be temporarily low despite a healthy underlying business.
In JADE: Complements P/E by capturing debt that P/E ignores. Key for comparing companies in capital-intensive sectors.
NOPAT / Invested Capital.
In JADE: The primary quality metric. ROIC ≥ 15% signals efficient capital allocation. It is the main tool for distinguishing opportunities from value traps.
A one-year spike in ROIC can be driven by an unusual transaction. Look for a consistent trend.
In JADE: Complements ROIC. High ROE at low leverage is a sign of genuine operational efficiency.
ROE can be inflated by high debt. That's why ROIC, which accounts for all capital, is the primary metric in JADE.
In JADE: A measure of financial risk. Heavily indebted companies lose Quality points.
For banks and insurers, this metric works differently — their debt has a different nature than corporate debt.
In JADE: A high margin signals a strong competitive position or efficient business model. Scored by percentile within the sector.
In JADE: Checks short-term liquidity. A low current ratio can signal near-term financial stress.
In JADE: The core indicator of business momentum. Higher CAGR vs. benchmark improves the Growth score.
Growth via acquisitions can look strong on paper without reflecting genuine organic strength.
In JADE: Complements Revenue CAGR. Revenue can grow while per-share earnings stagnate.
Buybacks can increase EPS without any growth in net income — it's worth checking both.
Operating Cash Flow − Capex.
In JADE: "Cash in the company's pocket" — a more reliable health indicator than reported earnings, which can be distorted by accounting choices.
In JADE: A company with growing FCF gains increasing financial flexibility — it can invest, repay debt, or return capital to shareholders.
In JADE: Core indicator in the Dividend pillar. Higher yield lifts the score — up to a threshold.
A very high yield (above 10%) can signal that the market expects a dividend cut or has concerns about the company's health.
In JADE: A signal of dividend safety. The 30–60% range is generally considered healthy.
Payout ratio above 80% may be unsustainable — the company is distributing nearly all its earnings with little left for investment or reserves.
In JADE: A long streak of uninterrupted payments signals financial stability and business maturity. Maintaining dividends through downturns is much harder than starting them.
In JADE: Buybacks are an alternative form of capital return — we count them alongside dividends in the Dividend pillar.
In JADE: The fifth scoring pillar. Neutral baseline: 50 pts (no signals). Insider and activist buying raises the score; selling lowers it.
Smart Money is a supplementary signal — it should never be the sole reason for an investment decision.
In JADE: The signal is stronger when multiple insiders buy simultaneously or when individual purchases are large.
Insiders sell for many reasons (taxes, diversification, personal needs). Selling is a weaker signal than buying.
In JADE: Primary source of Smart Money data for the US market (S&P 500).
In JADE: An activist entry (13D) is a strong signal — the investor wants change and typically discloses their intentions publicly.
In JADE: A position increase by a large institution (13G/A) signals growing institutional interest in the company.
In JADE: The basis for all rankings. The same company data produces a different final score depending on the chosen profile.
In JADE: The profile reflects your investment style. You can view the ranking of the same company under each profile.
In JADE: Price change = change in P/E, P/B, P/FCF = change in ranking position. Fundamentals (Quality, Growth) remain stable between quarterly reports.
In JADE: Quality (D2) and Growth (D3) change less frequently than Valuation (D1) — this stabilises rankings and reduces daily noise.
In JADE: ROIC and Business Quality (D2) help distinguish opportunities from traps. A cheap stock with low ROIC receives a low Quality score and does not advance in VALUE rankings.
Read more: JADE Methodology · US Ranking · GPW Ranking