Instead of just relying on your gut feeling, you might want to consider having a check list. As an example, here are 20 parameters to consider when picking stocks for a long-only security portfolio. You can setup the numbers in Excel and compare the companies that you are interested in. In case you have stake holders or shareholders, it is important to be able numerical reasoning for your positions.

Note that the available figures are usually dated and the equity price action tends to be fueled by change (all information is priced in).

1. Revenue growth: Consistent and sustainable revenue growth is a positive indicator of a company’s financial health and potential for future earnings growth.

2. Earnings growth: Earnings growth is a key metric to evaluate a company’s profitability and future earnings potential.

3. Profit margins: Profit margins can indicate a company’s ability to generate profits and manage costs.

4. Return on Equity (ROE): ROE measures how efficiently a company is using shareholder equity to generate profits.

5. Debt-to-Equity (D/E) ratio: The D/E ratio measures a company’s financial leverage and ability to manage debt.

6. Price-to-Earnings (P/E) ratio: The P/E ratio is a common metric used to evaluate a company’s valuation.

7. Price-to-Sales (P/S) ratio: The P/S ratio can provide insight into how the market values a company’s revenue.

8. Price-to-Book (P/B) ratio: The P/B ratio measures the market value of a company’s equity relative to its book value.

9. Dividend yield: Dividend yield can be an important metric for income investors looking for stocks that pay regular dividends.

10. Dividend payout ratio: The dividend payout ratio measures the percentage of earnings that a company pays out in dividends.

11. Free cash flow (FCF): FCF measures the cash generated by a company’s operations after accounting for capital expenditures.

12. Market capitalization: Market capitalization can provide insight into a company’s size, liquidity, and potential for growth.

13. Industry and sector trends: Evaluating industry and sector trends can help investors identify companies that are well-positioned for growth.

14. Competitive advantage: A company’s competitive advantage can be a key indicator of its potential for long-term success.

15. Management team: The quality and experience of a company’s management team can be an important factor in its success.

16. Brand strength: Strong brands can provide a competitive advantage and help companies generate higher revenue and profits.

17. Corporate governance: Evaluating a company’s corporate governance practices can help investors identify potential risks and red flags.

18. ESG factors: Environmental, social, and governance (ESG) factors can provide insight into a company’s ethical and sustainable practices. (Even if this might not impact your investment decision, it may impact large institutions that are inclined to market trends to their clients).

19. Technological innovation: Companies that are investing in innovative technologies may have a competitive advantage and potential for growth.

20. Macro-economic factors: Evaluating macro-economic factors such as interest rates, inflation, and geopolitical risks can help investors identify potential risks and opportunities.

It’s important to note that no single parameter can provide a complete picture of a company’s financial health and potential for growth. But numbers are more convincing that words.