Small-Cap companies' data aims to reflect companies with low market capitalisation and a track record of historical revenue growth, positive operating cash flow, low debt-to-equity ratio, as well as institutional confidence reflected in terms of ownership by strategic entities.
Various metrics such as last twelve months Debt to Equity Ratio (D/E), 3 Year Historic Average Revenue Growth, Current Market Price above 200 Day SMA, LFY Net Profit Margin, 3 Year Historical Average Operating Cash Flow, are used to filter out these companies. While a lower debt-to-equity ratio signifies the company's balance sheet strength and ability to grow using shareholders' equity, the Historical Average Revenue Growth metric helps identify if a business can expand its horizons in delivering goods and/or services.
When all the above-mentioned metrics are combined, the finest small-cap companies with a track record of historical revenue growth and positive operating cash flow are identified. This data screen of Sivastatz can be considered as a form of Small-Cap companies’ screener to identify potential opportunities in this space.
| Small-Cap companies Data Parameters |
| Key Metrics |
Description |
| Market Capitalization |
Objective is to identify profitable companies in small-cap, mid-cap, and large-cap space |
| LTM Debt to Equity Ratio (D/E) |
A lower debt to equity ratio signifies the company's balance sheet strength and ability to grow using shareholders' equity |
| 3Y Historic Average Revenue Growth |
Identifies if the business is able to expand its horizons in terms of delivering goods and/or services |
| Current Market Price above 200 Day SMA |
Typically it acts as an indicator of positive price momentum |
| LFY Net Profit Margin |
A high net profit margin suggest higher operating cash generation against each dollar of revenue |
| Net Margin |
Positive net margin signifies a company's ability to convert revenue into earnings |
| 3Y Historical Average Operating Cash Flow |
A positive operating cash flow measures the cash generation ability of a company's normal business operations |
Frequently Asked Questions (FAQs)
Q. Why should one invest in small-cap companies?
Ans. Small-capitalization companies present immense opportunities in terms of growth in revenue and profit, albeit they carry higher risks due to high volatility in their stock prices. Typically, most of the successful companies start with small business and grow over time
Q. How many small-cap companies are there in ASX?
Ans. The S&P/ASX Small Ordinaries index (XSO) hosts of these smaller companies and is used as a benchmark for small-cap Australian companies. It represents 200 companies ranked 101-300 in the S&P/ASX 300 Index (ASX: XKO).
Q. Does this screen show companies’ data from a particular sector?
Ans. No, this screen includes companies from across the sectors and market capitalization of less than AUD 3 billion.
Q. What do the Consensus Ratings and Consensus Mean Target Price of a company indicate?
Ans. The consensus mean target is deduced using statistical averages of broker estimates determined to be on the majority accounting basis and is provided by the licensed data provider. The price target is the projected price level forecasted by the respective analyst(s) within a specific time horizon.
The mean consensus rating is based on the data provided by the licensed data provider. The Consensus Rating is based on the Standard Scale of 1) Strong Buy, 2) Buy, 3) Hold, 4) Sell, and 5) Strong Sell.
Q. How many companies are shown on this screen?
Ans. This screen may include 10-20 companies, and the companies’ data screen is updated every week.