Please note that I do not own either GE or Walmart (WMT) stock. In this video, I go through my quick evaluation of both stocks using their financials.
Most companies report financials about once per quarter so you have the chance that your information can be a little stale. Still, it is the best public information available about a company.
Note that your quick check of a company should at the very least look at cash and debt. That can show you quickly how healthy the company is. Most companies you can rule out quickly by checking cash and debt.
For cash, you can check the Current Ratio. Anything company showing a current ratio below 1 can potentially be ruled out. While it may seem difficult to find companies with current ratio above 1, there are plenty out there.
For debt, you can either check the debt to equity ratio or just look at the balance sheet. Anything above zero should be questioned.
A company, especially in the S&P 500, that shows a net loss in the past couple of years can be ruled out also. Net loss makes it very difficult to compute a share price since the company’s stability is in question.
One last thing that was not included in the video: if you can’t understand how the company does business and makes money, you may want to also move along.
- Is It The Right Time To Buy General Electric After A 50% Fall In 2020? – Trefis
- GE CEO Buys Stock… So Buy GE, Right? – Rule One Investing
- Don’t Make These 5 Investing Mistakes That General Electric Investors Made – Behavior Value Investor
- Costco Vs Walmart Stock [Big Box Battle] – Financhill
- Are you wasting money on Wal-Mart? – Old School Value