financial-analysis

name	financial-analysis
description	Calculate fundamental financial metrics (P/E, ROE, profit margin, market cap) and assess valuation as overvalued, fairly valued, or undervalued. Use when you need deep financial analysis of a company's fundamentals.

Financial Analysis Skill

Purpose

This skill turns raw financial figures into fundamental metrics and a valuation verdict. It computes P/E, profit margin, ROE, and market cap, and weighs P/E, PEG, and P/B against industry norms to judge whether a stock is overvalued, fairly valued, or undervalued.

When to Use

Use this skill when the user (or a coordinating agent):

• Asks for fundamental analysis, financial metrics, or ratios
• Wants a valuation assessment ("is it overvalued?")
• Needs profitability or financial-health indicators (P/E, ROE, margins)

Capabilities

• Compute P/E ratio, profit margin, ROE, and market capitalization
• Categorize market cap (Mega / Large / Mid / Small)
• Assess valuation from P/E, PEG, and P/B against an industry average
• Optionally export results to JSON

Workflow

1. Gather the Inputs

Collect the financial figures you have for the company. Use the stock-lookup skill for price data, then supply the fundamental figures you know. Write them to a JSON file in tmp/. Any fields you omit are simply skipped.

Example tmp/financials.json:

{
  "ticker": "AAPL",
  "price": 195.0,
  "earnings_per_share": 6.4,
  "revenue": 383000000000,
  "net_income": 97000000000,
  "shareholders_equity": 62000000000,
  "shares_outstanding": 15500000000,
  "peg_ratio": 2.1,
  "pb_ratio": 45.0,
  "industry_avg_pe": 28.0
}

2. Run the Helper Script

uv run python .claude/skills/financial-analysis/compute_metrics.py \
  --input tmp/financials.json \
  --output tmp/metrics.json

Arguments:

• --input (required): Path to a JSON file with financial figures
• --output (optional): Path to write JSON results (e.g., tmp/metrics.json)

The script computes metrics from any raw figures present (price, EPS, revenue, etc.) and assesses valuation from any ratios present. P/E is derived from price / EPS when not supplied directly.

3. Interpret the Results

• P/E: < 15 cheap, 15-30 reasonable, > 30 rich (or high-growth)
• Profit margin: > 20% excellent, 10-20% good, < 10% low
• ROE: > 20% excellent, 15-20% good, < 15% moderate
• Valuation: majority of P/E, PEG, P/B signals decides over/fair/undervalued

Output Format

When --output is supplied, the script writes JSON like:

{
  "ticker": "AAPL",
  "metrics": {
    "pe_ratio": 30.47,
    "profit_margin_pct": 25.33,
    "roe_pct": 156.45,
    "market_cap": 3022500000000
  },
  "valuation": "Overvalued"
}

Important Notes

• Inputs are supplied figures, not live fundamentals; provide your best data
• Valuation requires at least one of P/E, PEG, or P/B to produce a verdict
• Use absolute paths under tmp/ for input/output files
• Use uv run python to execute (not plain python)