How does the Investment Grade (1-10) work?
The Investment Grade is Stock Insight's single 1-to-10 summary score for a company, where 1 is the strongest and 10 the weakest. It blends several pillars, profitability, financial stability, growth, valuation, economic moat, and technical momentum, into one number that captures the overall picture, without being a recommendation to act.
The grade matters as a fast orientation. Reading a full report takes time, and the Investment Grade gives an at-a-glance sense of how a company scores across the dimensions a careful analyst would weigh. A 2 signals a business that looks strong on most pillars; an 8 signals one with several weaknesses worth understanding before going further.
Crucially, it is a summary, not a verdict. The grade compresses a lot of nuance into one figure, so it is a starting point for reading the detail beneath it, why a company scores well on profitability but poorly on valuation, for instance. It is descriptive: a way to rank and compare research, not a directive to take any particular action.
Because the pillars include valuation and momentum, the grade reflects today's price, and the report is refreshed rather than frozen. A company's fundamentals move slowly, but its price and grade can change, which is exactly why the grade you see is tied to a dated report rather than fixed forever.
| Grade | What it broadly indicates |
|---|---|
| 1-3 | Strong across most pillars. |
| 4-6 | A mixed picture with clear trade-offs. |
| 7-10 | Several notable weaknesses to understand. |
Frequently asked questions
Is a grade of 1 a recommendation to invest?
No. The Investment Grade is a descriptive summary score, not a recommendation or a directive to take any action. It ranks how a company scores across several pillars so you can compare and prioritize research; the decision, and any advice, remains yours and your advisers'.
Why can a company's grade change over time?
The grade includes valuation and momentum, which depend on the share price, and it reflects the latest available data. As price and fundamentals move, the grade can shift, which is why each grade is tied to a dated report rather than being permanent.