workflow-er-sector-overview

name

workflow-er-sector-overview

description

WHAT: 10-15 page sector overview report covering competitive landscape and market structure (HHI), sector performance trends, key player profiling, growth/headwind/regulatory environment analysis, and a valuation heat map (EV/EBITDA ranges, PEG analysis, historical bands). Produced using FMP sector data and corp-finance-mcp comps tools. WHEN: Invoke when initiating sector coverage, preparing a sector rotation recommendation, or responding to a mandate such as "give me a sector overview of [industry]" or "where are the best opportunities in [sector]?"

Equity Research: Sector Overview

What this skill covers

A comprehensive 10-15 page sector report covering market structure, competitive dynamics, performance trends, key player profiles, growth and risk drivers, and a full valuation heat map. Provides the thematic context that underpins stock-specific recommendations.

Inputs

• Sector or industry name (e.g., "US Large-Cap Technology", "European Financials")
• Peer set: top 5-10 companies by market cap (or user-specified list)
• Coverage scope: full sector report or targeted sub-segment

Workflow

Step 1 — Market landscape and competitive structure

Call comps_analysis for the full peer group:

• Market share distribution by revenue (or AUM for financials)
• Herfindahl-Hirschman Index (HHI) to classify concentration: <1,500 (fragmented), 1,500-2,500 (moderate), >2,500 (concentrated)
• Competitive moats analysis: scale economies, network effects, switching costs, IP/patents, regulatory barriers
• Recent market share shifts (who is gaining vs losing and why)

Step 2 — Sector performance trends

Call fmp_sector_performance for historical data:

• Absolute sector total return (1M, 3M, 6M, 1Y, 3Y)
• Relative performance vs broad market benchmark (S&P 500 or regional equivalent)
• Sector rotation context: early/mid/late economic cycle positioning
• Beta relative to market: cyclical (beta >1) or defensive (beta <1)

Step 3 — Key player profiling

For each of the top 5-10 companies, call fmp_company_profile and fmp_key_metrics:

• Revenue scale and 3-year CAGR
• EBITDA margin and margin trajectory
• ROIC and capital allocation track record
• Management tenure and recent strategic decisions
• Valuation: EV/EBITDA, P/E, EV/Revenue at current prices

Present as a comparative table with all metrics standardised.

Step 4 — Growth drivers, headwinds, and regulatory environment

Structured analysis of the sector's forward outlook:

Demand drivers:

• Demographic tailwinds (ageing populations, urbanisation, workforce trends)
• Technology adoption curves and disruption risk
• Policy-driven demand (infrastructure spend, energy transition, defence)

Headwinds:

• Input cost sensitivity (labour, commodities, energy)
• Competitive intensity: new entrants, pricing pressure, substitution risk
• Cyclicality: revenue volatility vs GDP; operating leverage

Regulatory landscape:

• Current regulatory framework and pending changes
• Sector-specific risks: antitrust, environmental, consumer protection
• Regulatory tailwinds: subsidies, procurement, mandated adoption

Step 5 — Valuation heat map

Produce a valuation map across the sector:

EV/EBITDA ranges by sub-segment:

• Premium names (structural growers, moat leaders): EV/EBITDA range
• Core / mid-tier: EV/EBITDA range
• Value / discount names (cyclical, challenged): EV/EBITDA range

PEG analysis (P/E vs growth):

• Call comps_analysis for P/E and consensus growth rates
• PEG < 1.0: potentially undervalued relative to growth; PEG > 2.0: expensive relative to growth

Historical valuation bands:

• Current EV/EBITDA vs 5-year average and standard deviation
• Premium/discount to historical mean: is the sector cheap or expensive in context?

Report structure (10-15 pages)

1. Sector snapshot (market cap, revenue, key growth rate — 1 page)
2. Competitive landscape (HHI, moat classification, market share table — 2 pages)
3. Performance trends (sector vs market, rotation context — 1 page)
4. Key player profiles (comparative table — 2-3 pages)
5. Growth drivers and headwinds (structured analysis — 2 pages)
6. Regulatory environment (current + pending — 1-2 pages)
7. Valuation heat map (EV/EBITDA by tier, PEG, historical bands — 2 pages)
8. Investment conclusions (top picks and avoids with one-line rationale)

Output format

• 10-15 pages (markdown with structured tables)
• All financial metrics sourced from FMP tools with as-of date
• Comps and valuation from comps_analysis with tool citation

Quality gates

• HHI computed from market share data — not estimated
• Sector performance from fmp_sector_performance with date
• Key player metrics from fmp_key_metrics — standardised to the same period
• Historical valuation bands include at least 3 years of data
• Valuation heat map covers all three tiers (premium / core / value)

Related skills

• workflow-er-initiating-coverage — single-stock deep dives within the sector context
• workflow-er-idea-screening — quantitative screening of sector names for investment candidates
• workflow-er-morning-note — sector rotation signals used in morning briefs