Q: Hi Peter,
What does deterioration in fundamentals mean for a company from your perspective? And what are the indicators to watch out for?
Best,
Matt
What does deterioration in fundamentals mean for a company from your perspective? And what are the indicators to watch out for?
Best,
Matt
5i Research Answer:
It can be relative depending on the company but in general it is simply that the fundamental metrics are getting worse than they were previously. More specifically to name a few, this might mean slowing revenue growth, declining margins, declining ROE, and/or growing debt. Sometimes it could also be related to a specific key operating metric for a company such as backlog/pipeline, recurring revenue growth and so on.