Our Stock Screener now has a new group of indicators — “Margin indicators”, which includes popular fundamental indicators such as Gross margin, Operating margin, Net margin, and Free cash flow margin etc.
How can you use it?
By comparing these metrics across companies within the same industry and over time, investors can gain valuable insights into a company’s financial performance and industry, as well as to identify trends in a company’s business efficiency over time.
Gross margin is a profitability measure that shows the percentage of revenue after cost of goods sold. A high gross margin indicates that a company is producing its goods or services efficiently and may have pricing power, while a low gross margin may indicate that a company is struggling to control costs or facing competition that is driving prices down.
Operating margin is a profitability measure that shows the percentage of revenue after variable costs of production, such as wages, raw materials or rent, but before paying of interest and tax. A high or increasing over time operating margin indicates effective management in resource allocation and generation of operating profit, while a low operating margin may indicate a bad management in a company’s costs controlling and weak company growth.
Net profit margin or net margin is a profitability measure that shows the percentage of revenue after all expenses, including taxes, interest, and depreciation. A high net profit margin indicates that the company is able to generate significant profits after accounting for all expenses, which is a positive sign for investors.
Free cash flow margin is a performance ratio that measures free cash flow relative to revenue. Companies with high free cash flow margins may be more attractive to investors because they have the ability to generate more cash and invest in their business, while also returning cash to shareholders through dividends or stock buybacks.
Selling, general and administrative (SG&A) ratio measures the proportion of selling, general and administrative expenses relative to revenue.
Research & development (R&D) ratio measures the proportion of research and development expenses relative to revenue. The indicator may not be available, because many companies do not have R&D expenses.
These are just a few examples, but you can use any metric from the list below:
| Gross | Gross Margin (FY) |
| Gross Margin (TTM) | |
| Operating | Operating Margin (FY) |
| Operating Margin (TTM) | |
| Net | Net Margin (FY) |
| Net Margin (TTM) | |
| Free Cash Flow | Free Cash Flow Margin (FY) |
| Free Cash Flow Margin (TTM) | |
| SG&A | Selling General & Admin expenses Ratio (FY) |
| Selling General & Admin expenses Ratio (TTM) | |
| R&D | Research & development Ratio (FY) |
| Research & development Ratio (TTM) |
How to work with these features?
In the Stock Screener:
- Open the filter dialog and input new query “Margin” in the search field or find growth filters in the “Financials” category. Filter the indicator depending on your strategy:
2. Add indicators to the Screener list and sort as needed:
We hope you will find the new indicators useful. Please keep sending us your feedback — it’s what helps us make the platform better.
Team TradingView