Everyone talks about P/E, EPS, and revenue growth — but what’s one lesser-known or underrated metric that you always look at when researching stocks?
For me, it’s free cash flow per share. I’ve avoided a few bad picks just by noticing how weak their cash flow was, even if earnings looked solid.
Curious what others track. Maybe I’m missing something useful?
Insider buying is a solid sign. When company leaders buy shares, it usually means they believe in the future. I watch it closely.
I pay attention to the debt-to-equity ratio, especially now with rising interest rates. Many companies seem stable but have hidden risks due to high leverage. It’s crucial to dig deeper into financials before investing.
Dividend payout ratio matters a lot to me. If a company pays out more in dividends than it earns, that’s a red flag. It might look attractive for income investors, but it’s not sustainable long-term. Always good to check if earnings support the dividend payments before making decisions.