Stock Financial Metrics Analysis

This Python application fetches and analyzes financial metrics for major tech companies .

Project Structure

stock-report/
├── README.md # Project documentation
├── requirements.txt # Python dependencies
├── .gitignore # Git ignore patterns
├── stock_recommendation.py # Main recommendation engine
├── stock_cash_analysis.py # Cash flow and liquidity analysis
├── profitability_analysis.py # Profitability metrics calculation
└── industry_pe.py # Industry P/E Ratio calculation

Metrics Calculated

• Working Capital (Current Assets - Current Liabilities)
• Free Cash Flow (Operating Cash Flow - Capital Expenditures)
• Quick Ratio ((Cash + Short Term Investments) / Current Liabilities)
• Current Ratio (Current Assets / Current Liabilities)
• Industry P/E Ratio based on selected stocks(Price per Share / Earnings per Share)

Prerequisites

• Python 3.12 or higher
• Git (for version control)
• Internet connection (for fetching financial data)

Setup and Installation

1. Create and activate a virtual environment:

# Create virtual environment with Python 3.12
python3.12 -m venv venv

# Activate virtual environment
# On macOS/Linux:
source venv/bin/activate
# On Windows:
.\venv\Scripts\activate

2. Upgrade pip and install required tools:

python -m pip install --upgrade pip setuptools wheel

3. Install the required dependencies:

pip install -r requirements.txt

4. Run the application:

python3.12 stock_analysis.py
python3.12 industry_pe.py

5. Configure API keys:

   # Copy the template configuration file
   cp local_config.template.py local_config.py
   
   # Edit local_config.py with your API keys
   # Get your API keys from:
   # - FRED API: https://fred.stlouisfed.org/docs/api/api_key.html
   # - Alpha Vantage: https://www.alphavantage.co/

Output Format

The application will display:

1. A formatted table containing:

• Working Capital (in millions)
• Free Cash Flow (in millions)
• Quick Ratio
• Current Ratio

2. A list of P/E ratios for the selected stocks for valuation

• Trailing Twelve Month P/E ratio
• Forward P/E ratio (Can be configured)

3. A list of profitability metrics for the selected stocks

• Operating Margin (%)
• Net Profit Margin (%)
• Return on Equity (ROE)
• Return on Assets (ROA)
• EPS/Price Ratio (%)

4. A recommendation based on the selected stocks marks

• Strong Buy/Buy/Hold/Sell/Strong Sell

Troubleshooting

Virtual Environment Issues

If you encounter issues with package imports or pip:

1. Ensure you're using the correct Python version:

python --version  # Should show Python 3.12.x

2. Verify virtual environment activation:

# You should see (venv) at the start of your prompt
# If not, reactivate the virtual environment
source venv/bin/activate  # On macOS/Linux

3. If problems persist, recreate the virtual environment:

# Remove old environment
rm -rf venv

# Create new environment
python3.12 -m venv venv

# Activate and install dependencies
source venv/bin/activate
python -m pip install --upgrade pip setuptools wheel
pip install -r requirements.txt

Notes

• All monetary values (Working Capital and Free Cash Flow) are displayed in millions (M)
• The application uses the yfinance library to fetch financial data
• Due to rate limiting, you might need to wait a few seconds between requests
• Make sure you have a stable internet connection when running the application