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Twelve Data Company Fundamentals - Deep Financial Analysis

Fundamental analysis is the cornerstone of long-term investment success, requiring detailed examination of a company's financial health, operations, and market position. The Twelve Data Market Data Connector provides comprehensive fundamental data through operations like profile, fundamentals, and detailed financial statements.

This guide covers how to access and analyze company fundamentals through the interface, enabling you to make informed investment decisions based on financial data.

Understanding Fundamental Operations​

Company Profile - Basic Company Information​

The profile operation provides essential company information including business description, industry classification, and key executives.

Key Information:

  • Company name and description
  • Industry and sector classification
  • Market capitalization and outstanding shares
  • Executive leadership and board members
  • Website and contact information

Fundamentals - Comprehensive Financial Overview​

The fundamentals operation delivers aggregated financial metrics and ratios for quick analysis.

Key Metrics:

  • Valuation ratios (P/E, P/B, P/S)
  • Profitability metrics (ROE, ROA, margins)
  • Growth rates and trends
  • Debt and liquidity ratios

Financial Statements - Detailed Financials​

Income Statement: Revenue, expenses, and profitability over time Balance Sheet: Assets, liabilities, and shareholder equity Cash Flow Statement: Operating, investing, and financing cash flows

Statement Types:

  • Annual financials
  • Quarterly reports
  • Consolidated vs. unconsolidated
  • Historical comparisons

Market Statistics - Trading and Valuation Data​

The statistics operation provides current market statistics and trading metrics.

Key Statistics:

  • 52-week high/low prices
  • Average volume and market cap
  • Beta and volatility measures
  • Dividend information

Market Capitalization - Size and Scale​

The market_cap operation provides current market valuation data.

Step-by-Step Usage Guide​

Getting Company Profile Information​

Step 1: Select the Worker

  • Add worker type: twelve_data
  • Select operation: profile

Step 2: Configure Parameters

  • api_key: (Optional) Your personal API key
  • symbol: Company symbol (e.g., AAPL, MSFT)

Example Configuration:

operation: profile
symbol: TSLA

Output Structure:

{
  "operation": "profile",
  "profile": {
    "symbol": "TSLA",
    "name": "Tesla, Inc.",
    "description": "Tesla, Inc. designs, develops, manufactures, and sells electric vehicles...",
    "industry": "Auto Manufacturers",
    "sector": "Consumer Cyclical",
    "ceo": "Elon Musk",
    "employees": 140473,
    "website": "https://www.tesla.com",
    "market_cap": 587000000000,
    "shares_outstanding": 3180000000
  }
}

Accessing Financial Fundamentals​

Step 1: Select Operation

  • Choose operation: fundamentals

Step 2: Basic Setup

  • symbol: Target company symbol

Example:

operation: fundamentals
symbol: AAPL

Output Includes:

  • General: Basic company info
  • Highlights: Key financial metrics
  • Valuation: P/E, P/B, P/S ratios
  • SharesStats: Outstanding shares and float
  • Technicals: Beta, 52-week range
  • SplitsDividends: Dividend history and stock splits

Analyzing Income Statements​

Step 1: Select Operation

  • Choose operation: income_statement

Step 2: Configure Parameters

  • symbol: Company symbol
  • period: "annual" or "quarterly" (default: annual)
  • limit: Number of periods to return (default: 10)

Example Configuration:

operation: income_statement
symbol: MSFT
period: annual
limit: 5

Output Structure:

{
  "operation": "income_statement",
  "income_statement": [
    {
      "fiscal_date": "2023-06-30",
      "total_revenue": 211915000000,
      "cost_of_revenue": 72800000000,
      "gross_profit": 139115000000,
      "operating_income": 88523000000,
      "net_income": 72361000000,
      "eps": 9.68
    }
  ]
}

Examining Balance Sheets​

Step 1: Select Operation

  • Choose operation: balance_sheet

Step 2: Configure Parameters

  • symbol: Company symbol
  • period: "annual" or "quarterly"
  • limit: Number of periods

Example:

operation: balance_sheet
symbol: GOOGL
period: quarterly
limit: 8

Key Balance Sheet Items:

  • Assets: Cash, receivables, inventory, PP&E
  • Liabilities: Debt, payables, accrued expenses
  • Equity: Retained earnings, share capital

Cash Flow Analysis​

Step 1: Select Operation

  • Choose operation: cash_flow

Step 2: Configure Parameters

  • symbol: Company symbol
  • period: Annual or quarterly
  • limit: Number of periods

Example:

operation: cash_flow
symbol: AMZN
period: annual
limit: 5

Cash Flow Components:

  • Operating Cash Flow: Core business cash generation
  • Investing Cash Flow: Capital expenditures, acquisitions
  • Financing Cash Flow: Debt, equity transactions

Getting Market Statistics​

Step 1: Select Operation

  • Choose operation: statistics

Step 2: Basic Setup

  • symbol: Company symbol

Example:

operation: statistics
symbol: NVDA

Statistical Data:

  • Trading volume and volatility
  • Market capitalization
  • 52-week price range
  • Dividend yield and payout ratio

Practical Fundamental Analysis Workflows​

Comprehensive Company Analysis​

Step 1: Company Overview

  • Worker 1: profile - Get basic company information
  • Worker 2: statistics - Current market statistics

Step 2: Financial Health

  • Worker 3: income_statement - Revenue and profitability trends
  • Worker 4: balance_sheet - Asset and liability structure
  • Worker 5: cash_flow - Cash generation and usage

Step 3: Valuation Analysis

  • Worker 6: fundamentals - Key ratios and metrics
  • Calculate custom ratios from financial statements

Comparative Analysis​

Multi-Company Comparison:

  1. Select Peer Group: Choose 3-5 similar companies
  2. Collect Data: Get income statements for all peers
  3. Normalize Data: Adjust for size differences
  4. Compare Metrics: Revenue growth, margins, ROE

Example Peer Analysis:

  • Compare FAANG companies
  • Analyze sector competitors
  • Evaluate acquisition targets

Financial Ratio Calculation​

Common Ratios to Calculate:

Profitability Ratios:

  • Gross Margin = Gross Profit / Revenue
  • Operating Margin = Operating Income / Revenue
  • Net Margin = Net Income / Revenue
  • ROE = Net Income / Shareholder Equity
  • ROA = Net Income / Total Assets

Liquidity Ratios:

  • Current Ratio = Current Assets / Current Liabilities
  • Quick Ratio = (Cash + Receivables) / Current Liabilities

Efficiency Ratios:

  • Asset Turnover = Revenue / Total Assets
  • Inventory Turnover = COGS / Average Inventory

Growth Analysis​

Revenue Growth:

  • Year-over-year growth rates
  • Compound annual growth rate (CAGR)
  • Segment-wise growth analysis

Earnings Growth:

  • EPS growth trends
  • Book value growth
  • Dividend growth rates

Advanced Financial Analysis Techniques​

DuPont Analysis​

ROE Breakdown:

ROE = Net Margin × Asset Turnover × Equity Multiplier

Components:

  • Net Margin: Profitability efficiency
  • Asset Turnover: Operational efficiency
  • Equity Multiplier: Financial leverage

Cash Flow Quality Assessment​

Operating Cash Flow Analysis:

  • Compare CFO to Net Income
  • Analyze working capital changes
  • Evaluate cash flow trends

Free Cash Flow Calculation:

FCF = Operating Cash Flow - Capital Expenditures

Balance Sheet Strength​

Solvency Analysis:

  • Debt-to-Equity ratio
  • Interest coverage ratio
  • Current ratio trends

Asset Quality:

  • PP&E as % of assets
  • Goodwill and intangibles analysis
  • Inventory and receivables quality

Integration with Other Data​

Combining Fundamentals with Technicals​

Comprehensive Analysis Workflow:

  1. Fundamental Screen: Use fundamentals to identify candidates
  2. Technical Analysis: Apply technical indicators to filtered stocks
  3. Sentiment Analysis: Incorporate news and social media data
  4. Portfolio Construction: Build diversified portfolio

Valuation Models​

Discounted Cash Flow (DCF):

  1. Get historical cash flows
  2. Project future cash flows
  3. Calculate terminal value
  4. Discount to present value

Comparable Company Analysis:

  1. Identify peer companies
  2. Calculate valuation multiples
  3. Apply to target company
  4. Determine fair value

Risk Assessment​

Financial Risk Metrics:

  • Debt covenants analysis
  • Credit rating implications
  • Bankruptcy risk indicators

Business Risk Factors:

  • Industry competition
  • Regulatory environment
  • Management quality

Best Practices and Tips​

Data Quality Verification​

  • Source Consistency: Ensure all data from same reporting standards
  • Currency Effects: Account for currency translation in international companies
  • Accounting Changes: Note changes in accounting policies
  • Restatements: Check for financial restatements

Analytical Framework​

  • Historical Trends: Analyze 5-10 years of data
  • Peer Comparison: Benchmark against industry peers
  • Industry Context: Consider sector-specific metrics
  • Economic Cycle: Adjust analysis for business cycle position

Timing Considerations​

  • Reporting Season: Focus on earnings season for fresh data
  • Quarterly vs Annual: Use quarterly for recent trends, annual for long-term
  • Guidance Analysis: Compare actuals to management guidance
  • Consensus Estimates: Compare to analyst expectations

Common Fundamental Analysis Strategies​

Value Investing​

Value Criteria:

  • Low P/E ratio (< 15)
  • Low P/B ratio (< 1.5)
  • High dividend yield (> 3%)
  • Low debt-to-equity (< 0.5)

Screening Process:

  1. Set value criteria
  2. Screen for qualifying stocks
  3. Fundamental analysis of candidates
  4. Valuation assessment

Growth Investing​

Growth Characteristics:

  • High revenue growth (> 20% annually)
  • Expanding margins
  • Strong ROE (> 15%)
  • Industry leadership position

Analysis Focus:

  • Growth sustainability
  • Competitive advantages
  • Management quality
  • Market opportunity

Quality Investing​

Quality Metrics:

  • High ROIC (> 10%)
  • Strong balance sheet
  • Consistent earnings
  • Ethical business practices

Assessment Areas:

  • Business model quality
  • Competitive positioning
  • Management effectiveness
  • Risk management

Performance Optimization​

API Efficiency​

  • Batch Requests: Get fundamentals for multiple companies
  • Selective Data: Request only needed financial periods
  • Caching Strategy: Cache fundamental data (updates quarterly)
  • Rate Management: Respect API limits during bulk analysis

Workflow Design​

  • Sequential Processing: Get profile first, then detailed financials
  • Conditional Logic: Only fetch detailed data for qualified companies
  • Error Handling: Handle missing data and API errors gracefully
  • Result Aggregation: Combine data from multiple operations

Troubleshooting​

Missing Financial Data​

  • Check Symbol: Verify correct symbol format
  • Exchange Coverage: Ensure company trades on supported exchange
  • Data Availability: Some data may not be available for all companies
  • Reporting Status: Check if company has filed recent reports

Data Interpretation Issues​

  • Accounting Standards: Note differences between GAAP and IFRS
  • Currency Effects: Adjust for foreign currency impacts
  • One-time Items: Identify and exclude non-recurring items
  • Seasonal Effects: Account for seasonal business patterns

Performance Issues​

  • Limit Parameters: Reduce number of periods requested
  • Selective Operations: Get only essential financial statements
  • Parallel Processing: Run multiple company analyses simultaneously
  • Caching: Implement local caching for repeated queries

Integration Examples​

With Technical Analysis​

Fundamental + Technical Workflow:

  1. Screen Fundamentals: Identify undervalued companies
  2. Technical Confirmation: Check for bullish chart patterns
  3. Entry Timing: Use technical signals for precise entry
  4. Risk Management: Set stops based on technical levels

With Portfolio Management​

Portfolio Analysis System:

  1. Holdings Data: Get fundamentals for all portfolio holdings
  2. Performance Attribution: Analyze contribution by sector/company
  3. Rebalancing: Identify overweight/underweight positions
  4. Tax Optimization: Consider tax implications of trades

With Risk Management​

Risk Assessment Framework:

  1. Financial Risk: Analyze balance sheet strength
  2. Business Risk: Evaluate industry and competitive position
  3. Valuation Risk: Assess margin of safety
  4. Portfolio Risk: Calculate overall portfolio risk metrics

Conclusion​

Fundamental analysis provides the deep understanding needed for successful long-term investing. The Twelve Data fundamental operations give you access to comprehensive financial data that enables thorough company analysis and informed investment decisions.

By mastering these operations and applying systematic analytical frameworks, you can:

  • Evaluate company financial health
  • Compare companies within industries
  • Identify undervalued investment opportunities
  • Build robust, research-driven portfolios

Remember that fundamental analysis requires patience and discipline. Use these tools to develop a consistent analytical process, and always combine fundamental insights with technical analysis and risk management for optimal results.

For automated screening and analysis, consider combining these operations with custom calculation workers to build sophisticated investment models.