LionCharts

How to Screen Stocks Using SEC EDGAR Data

Published June 14, 2026 · 9 min read

By Kalek Todorovic — Creator of LionCharts. Connect on LinkedIn.

The SEC EDGAR database is one of the most powerful resources available to individual investors. Every publicly traded company in the United States files detailed financial reports through this system, including annual reports (10-K), quarterly reports (10-Q), and current reports (8-K). With the right approach, you can use this data to screen for investment opportunities without paying for expensive Bloomberg terminals or subscription services.

At LionCharts, we aggregate data from over 5,000 SEC-registered companies and compute 20+ financial metrics automatically. This article walks through a practical screening workflow using real data from our platform.

Step 1: Define Your Investment Criteria

Before opening any screener, you need a clear set of criteria. A well-defined screen prevents analysis paralysis and helps you focus on companies that match your investment philosophy. Consider these common approaches:

• Value investing: Low P/E ratio (under 15), low P/B ratio (under 1.5), positive free cash flow, and a dividend yield above 2%.
• Growth investing: Revenue growth above 15% year-over-year, high profit margins, and strong return on equity (ROE above 15%).
• Quality investing: Low debt-to-assets ratio (under 40%), consistent gross margins above 40%, and positive net income for the past 5 years.

Each approach requires different metrics, and the SEC EDGAR data in our screener covers all of them.

Step 2: Use the Screener to Filter Companies

Navigate to the Screener tab on LionCharts. You'll see a table of over 5,000 companies with 16 financial metrics columns. Use the dropdown filters at the top to narrow down:

• Market Cap: Filter by company size. Large-cap ($10B+) companies tend to be more stable, while small-caps ($300M-$2B) offer higher growth potential but greater volatility.
• Revenue Growth: Set a minimum threshold. For growth investing, look for companies with revenue growth above 15-20% year-over-year.
• P/E Ratio: Exclude extremely high or negative P/E ratios depending on your strategy. Value investors typically set a maximum P/E of 15-20.

The screener updates instantly as you adjust filters. You can also sort any column by clicking the header.

Step 3: Analyze Individual Companies

Once you've identified promising tickers, click on any ticker symbol to open the full company dashboard. Here you'll find:

• Price charts with historical data and adjustable date ranges
• Financial statements — Income Statement, Balance Sheet, and Cash Flow Statement going back up to 10 fiscal years
• Fundamental ratio charts — Visual trends for revenue, earnings, EPS, margins, ROE, ROA, and debt ratios
• Daily valuation metrics — P/E, P/S, P/B, EV/EBITDA, and FCF yield

This is where the real work begins. A screener narrows the universe, but individual analysis determines whether a company is truly undervalued or simply facing structural challenges.

Step 4: Verify with Original Filings

Always verify key numbers against the original SEC filings. The SEC EDGAR system allows you to download the actual 10-K and 10-Q documents. Pay special attention to:

• The Management Discussion and Analysis (MD&A) section, where executives explain their own results
• Footnotes to financial statements, which often contain details about debt covenants, litigation, and accounting policies
• The auditor's opinion — a qualified opinion can signal serious accounting issues

Data from the SEC EDGAR XBRL feed is generally reliable, but restatements and categorization differences can affect computed ratios. Always cross-reference critical figures.

Conclusion

SEC EDGAR data levels the playing field between institutional and individual investors. With a systematic screening process and attention to fundamental details, you can identify high-quality companies that the market may have overlooked. Start your next screen at LionCharts and build your watchlist today.

References: SEC EDGAR · SEC Investor.gov — How to Read a 10-K

Understanding Financial Ratios: A Beginner's Guide

Published June 10, 2026 · 10 min read

By Kalek Todorovic — Creator of LionCharts. Connect on LinkedIn.

Financial ratios are the building blocks of fundamental analysis. They allow investors to compare companies of different sizes, industries, and geographies on a level playing field. A company's raw revenue number tells you little on its own, but its profit margin or price-to-earnings ratio reveals how it performs relative to its peers and its own history.

This guide covers the essential financial ratios available on LionCharts, how to interpret them, and common pitfalls to avoid.

Profitability Ratios

Gross Margin

Gross margin measures the percentage of revenue retained after deducting the cost of goods sold (COGS). It reveals pricing power and production efficiency. A software company might have gross margins above 70%, while a grocery retailer operates on 20-30%. The trend matters more than the absolute number — consistently expanding gross margins suggest improving competitive advantage.

Operating Margin

Operating margin goes a step further by subtracting operating expenses (SG&A, R&D, depreciation) from gross profit. This ratio shows how efficiently a company manages its core business operations. High operating margins relative to industry peers often indicate a durable competitive moat.

Net Margin

The bottom line after all expenses, interest, and taxes. Net margin can be distorted by one-time items, tax adjustments, or interest expense. Always check the income statement for unusual items before drawing conclusions from net margin alone.

Leverage and Solvency Ratios

Debt-to-Assets Ratio

This ratio measures what percentage of a company's assets are financed by debt. A ratio above 50% may indicate higher financial risk, though acceptable levels vary by industry. Utilities and telecom companies typically carry higher debt loads due to their capital-intensive infrastructure, while technology companies often operate with minimal debt.

Return on Equity (ROE)

ROE measures how effectively management uses shareholder equity to generate profits. A consistent ROE above 15-20% is generally considered strong. However, ROE can be artificially inflated by high debt levels, so it should be evaluated alongside the debt-to-assets ratio. The DuPont decomposition breaks ROE into three components: profit margin, asset turnover, and financial leverage — revealing the true driver of returns.

Return on Assets (ROA)

ROA measures how efficiently a company uses all of its assets (both debt- and equity-financed) to generate earnings. This ratio is particularly useful for comparing companies within capital-intensive industries like manufacturing or transportation.

Valuation Ratios

Price-to-Earnings (P/E) Ratio

The most widely used valuation metric. A trailing P/E ratio compares the current stock price to the past 12 months of earnings per share. A high P/E may indicate that investors expect future growth, or it may signal an overvalued stock. Always compare P/E ratios within the same industry and against the company's own historical range.

Price-to-Sales (P/S) Ratio

P/S ratio is useful for companies that are not yet profitable. It compares market capitalization to total revenue. A low P/S ratio relative to peers may indicate an undervalued company, but it can also reflect structural problems with the business model. Unlike earnings, revenue is harder to manipulate through accounting adjustments.

Common Pitfalls to Avoid

• Comparing across industries: A P/E ratio of 8 might be normal for a bank but concerning for a software company. Always compare within the same industry.
• Ignoring debt structure: Two companies with the same ROE can have very different risk profiles if one uses significantly more debt.
• One-time items: Non-recurring charges or gains can distort net income and all ratios derived from it. Use operating income or adjusted earnings for more consistent comparisons.
• Share buybacks: Aggressive share repurchases can boost EPS and ROE without any improvement in underlying business performance.

Putting It All Together

No single ratio tells the whole story. The most effective approach is to build a dashboard of ratios and look for consistent patterns. A company with strong and improving margins, reasonable leverage, high returns on capital, and a reasonable valuation multiple is worth investigating further. LionCharts makes this easy by displaying 20+ financial metrics for every SEC-registered company in a single view.

References: SEC EDGAR · Investopedia — Ratio Analysis

Tracking the Economy: Key FRED Indicators Every Investor Should Watch

Published June 6, 2026 · 8 min read

By Kalek Todorovic — Creator of LionCharts. Connect on LinkedIn.

The Federal Reserve Economic Data (FRED) database, maintained by the Federal Reserve Bank of St. Louis, is one of the most comprehensive sources of macroeconomic data available to the public. From inflation measures to employment statistics, FRED provides the raw data that shapes monetary policy and, by extension, financial markets.

LionCharts integrates key FRED indicators directly into your dashboard. Here's what each one means and why it matters for your investment decisions.

CPI — Consumer Price Index

The CPI measures the average change in prices paid by urban consumers for a basket of goods and services. It is the most widely followed inflation indicator. When CPI rises above the Federal Reserve's 2% target, the Fed typically responds by raising interest rates, which can depress stock valuations (especially for growth companies) and increase bond yields.

Core CPI (excluding food and energy) is often preferred by economists because it strips out the volatile components that can give misleading signals about underlying inflation trends.

GDP — Gross Domestic Product

GDP measures the total value of goods and services produced in the United States. Real GDP (adjusted for inflation) is the standard measure of economic growth. Two consecutive quarters of negative GDP growth is a common (though unofficial) definition of a recession.

Investors watch GDP growth rates because corporate earnings are highly correlated with economic output. A slowing economy often leads to downgraded earnings forecasts and falling stock prices, while accelerating growth supports broader market gains.

Unemployment Rate

The unemployment rate measures the percentage of the labor force that is actively seeking work but unable to find it. Low unemployment typically supports consumer spending and corporate earnings. However, extremely low unemployment can also signal an overheating economy and potential inflationary pressure.

The U-3 rate (headline unemployment) and U-6 rate (which includes discouraged workers and those working part-time for economic reasons) both appear in FRED. The gap between these two measures reveals the degree of labor market slack.

Fed Funds Rate

The federal funds rate is the interest rate at which banks lend reserve balances to each other overnight. It is the primary tool the Federal Reserve uses to conduct monetary policy. Changes to this rate ripple through the entire financial system, affecting mortgage rates, credit card interest, corporate borrowing costs, and the discount rate used in stock valuation models.

PCE Inflation

The Personal Consumption Expenditures (PCE) price index is the Federal Reserve's preferred inflation measure. Unlike CPI, PCE accounts for changes in consumer behavior when prices rise (substituting cheaper goods for expensive ones). The Fed targets 2% PCE inflation as its long-run goal. Core PCE (excluding food and energy) receives the most attention from policymakers and financial media.

M2 Money Supply

M2 measures the total money supply in the economy, including cash, checking deposits, savings deposits, and money market securities. Rapid growth in M2 has historically preceded inflation, while contraction has preceded economic slowdowns. The dramatic expansion of M2 during 2020-2021 was followed by the highest inflation rates in 40 years during 2022-2023.

How to Use FRED Data in Your Analysis

Rather than reacting to individual data releases, focus on the trends and rates of change. A single CPI reading above expectations is noise; six months of accelerating inflation is a signal. The FRED indicators on our Economy tab provide 10+ years of historical context so you can identify these trends at a glance.

References: Federal Reserve Bank of St. Louis FRED · Federal Reserve Monetary Policy

How to Read a 10-K Filing: Key Sections for Investors

Published June 2, 2026 · 11 min read

By Kalek Todorovic — Creator of LionCharts. Connect on LinkedIn.

The SEC Form 10-K is the annual report that every publicly traded company must file with the Securities and Exchange Commission. It is the single most comprehensive source of information about a company's business, financial condition, and risk factors. While it can run hundreds of pages, focusing on the key sections can give you deep insight into a company's quality and prospects.

LionCharts extracts the financial statement data from these filings automatically, but reading the original document provides context and nuance that no automated tool can capture.

Item 1: Business Overview

This section describes what the company does, its products and services, its competitive position, and its market opportunity. Look for clear, specific language about competitive advantages (moats), customer concentration risk, and regulatory exposure. Vague or overly complex descriptions can be a red flag.

Item 1A: Risk Factors

Perhaps the most revealing section for investors. Companies are required to disclose all material risks to their business. The risks are typically listed in order of importance. Pay attention to risks that are specific to the company (rather than generic macroeconomic risks that apply to every business). New risk factors appearing in the latest filing compared to the prior year can signal emerging challenges.

Item 7: Management's Discussion and Analysis (MD&A)

The MD&A is where management explains the company's financial results in their own words. This is often the most valuable section for investors. Look for:

• Revenue drivers: Are sales growing from volume, price increases, or both? Volume-driven growth is generally more sustainable.
• Margin trends: Is management transparent about cost pressures? How are they addressing them?
• Liquidity and capital resources: Does the company generate enough cash to fund its operations and growth? How much debt is coming due?
• Forward-looking statements: Management's outlook and guidance for the coming year. Compare previous guidance to actual results to gauge management credibility.

Item 8: Financial Statements and Supplementary Data

The audited financial statements — Income Statement, Balance Sheet, Cash Flow Statement, and Statement of Shareholders' Equity — are the core of the 10-K. The accompanying notes (footnotes) are equally important and contain details about:

• Revenue recognition policies
• Stock-based compensation and its impact on diluted shares
• Pension obligations and other post-retirement benefits
• Lease obligations (both operating and finance leases)
• Contingent liabilities and pending litigation
• Income tax disclosures, including deferred tax assets and valuation allowances

Item 9: Changes in and Disagreements with Accountants

If a company changes its auditor, or if there were disagreements with the auditor over accounting practices, this section discloses it. Auditor changes can sometimes signal accounting concerns, especially if they occur after a restatement or during an SEC investigation.

Red Flags to Watch For

• Late filings: Companies that consistently file late often have internal control weaknesses.
• Material weakness disclosures: If the auditor identifies a material weakness in internal controls over financial reporting (Item 9A), take it seriously.
• Related-party transactions: Excessive or unusual transactions with related parties (found in the footnotes) can indicate governance problems.
• Revenue recognition changes: Sudden changes in how revenue is recognized can be a red flag for earnings manipulation.

Using LionCharts Alongside the 10-K

Our platform automatically parses the XBRL data from 10-K and 10-Q filings to build financial statements and compute ratios. Use the original filing to verify critical numbers and read the MD&A for context — then use LionCharts to track trends across multiple periods and compare against peers. The combination of automated data and firsthand reading of filings gives you an edge over investors who rely on only one or the other.

References: SEC Form 10-K · SEC Investor.gov — How to Read a 10-K