Quality first
We only consider businesses with durable financial characteristics.
Compound Radar Methodology
A systematic way to discover exceptional companies before the market fully recognizes them.
Compound Radar is a quantitative stock research platform focused on identifying high-quality growth companies using fundamental analysis and systematic scoring. We combine financial quality analysis, valuation, market context, and entry timing to surface companies worth researching — not to issue buy or sell recommendations.
Principles
Entry matters
A great business is not always a great investment today.
Public transparency
Every published opportunity is tracked against QQQ.
Who this is for
Built for investors who
- Prefer research over hype
- Invest in individual companies
- Want a repeatable process
- Care about business quality and valuation
Not for
- Day traders
- Guaranteed signals
- Short-term predictions
Why not just use screeners?
Traditional screeners
Find numbers — ROIC above a cutoff, a stock down 20%, a PE under 15. Useful, but incomplete.
Compound Radar
Connects numbers, business quality, and market context into research candidates — then tracks published ideas in public.
Profitability
Margins, return on equity, return on invested capital, and earnings consistency.
Business quality
Revenue growth, earnings growth, and stability over time.
Balance sheet
Debt load, liquidity, and leverage relative to the business.
Cash flow
Free cash flow, cash conversion, and capital allocation discipline.
What this looks like in practice
Company A
Why
Excellent margins and cash generation, but valuation is above historical ranges.
Result
Great business. Not an attractive entry today.
Quality and timing are separate questions. That is the core of long-term investing research on Compound Radar.
Entry Status
Entry Status is a timing read. A high Health Score does not automatically mean Strong Entry — quality and entry timing are different questions.
Strong Entry
Timing looks favorable across trend, momentum, valuation, support, and catalysts.
Good Entry
A usable setup — not as clean as Strong Entry, but timing is worth tracking as an entry.
Watch
Worth tracking, but timing is mixed — not a clear setup yet.
Wait
Entry timing is weak right now. Quality may be fine; the setup is not.
Not tracked
Off the active watchlist — typically below our size, liquidity, or coverage filters.
Business quality
Changes in profitability, growth, competitive position, and financial strength.
Valuation
Whether expected future returns remain attractive relative to the current price.
Market conditions
Changes in trend, momentum, sentiment, and the broader market environment.
Investment thesis
Whether the reasons for owning the company remain valid.
Exit Timing
Exit analysis helps identify when a position may no longer offer an attractive risk/reward profile. This is a thesis review — not a sell signal.
Thesis broken
Financial quality deteriorates, growth assumptions weaken, or competitive advantages decline.
Valuation becomes excessive
Expected future returns compress, or market expectations become difficult to justify.
Better opportunities emerge
A stronger setup appears elsewhere and opportunity cost increases.
Market conditions change
Momentum deteriorates, or the market environment changes materially relative to the original setup.
Performance
Published opportunities are marked to market and compared with QQQ so readers can judge results in context.
Why QQQ?
QQQ is a liquid growth-oriented benchmark that fits the kinds of businesses Compound Radar tends to research better than a broad market average alone.
How returns are shown
Each opportunity shows return from the published entry price to the latest quote, the matching QQQ move from that same date, and alpha as the difference between the two.
Methodology FAQ
- Is Compound Radar financial advice?
- No. Compound Radar publishes research models and track records. Do your own research before making investment decisions.
- Why isn’t company X covered?
- Coverage focuses on names that clear size, liquidity, and data-quality filters. Many tickers sit below those bars or are Not tracked.
- Why did the score change?
- Fundamentals update as new financial data arrives, usually around quarterly filings. Prices and market context can also shift Entry Status.
- How often are scores updated?
- Market prices refresh daily. Fundamental Health inputs update as new filings and financial data become available.
- Why doesn’t a high Health Score mean Strong Entry?
- Because quality and entry timing are different questions. A durable business can still be poorly timed or richly valued today.
- How long do you hold a published opportunity?
- There is no fixed target horizon. Positions are monitored as long-term research ideas until the thesis, valuation, or market conditions warrant an exit review.
- What happens if the stock drops after publication?
- Price alone does not invalidate a thesis. We review whether business quality, valuation, and the original reasons for the opportunity still hold — then update the research accordingly.
- How are scores calculated?
- Financial Health scores business quality from profitability, growth, balance sheet, and cash flow. Entry Status is a separate timing read from trend, momentum, valuation, support, and catalysts.
- How are opportunities tracked?
- When a setup is published, the entry date and price become the public baseline. Performance is marked to market and compared with QQQ, including wins and losers.
- Why compare against QQQ?
- QQQ is a liquid growth-oriented benchmark that fits the kinds of businesses Compound Radar tends to research better than a broad market average alone.
How the process fits together
Financial statements feed Financial Health, then opportunity ranking and entry timing. Published opportunities are monitored for thesis alignment, then exit timing reviews, and tracked versus QQQ.