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🚀 Exciting Product Launch! 🚀 We're thrilled to unveil the latest version of our Earnings Analyser App, now enhanced with A.L.I.C.E GenAi capabilities, tailored for Portfolio Managers, traders, and Quants. This innovative app dramatically reduces the time spent on analysis!
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Users can engage in effortless conversations with the app to swiftly assess and juxtapose essential financial metrics, ratios, and earnings call transcripts, unlocking insights in minutes that traditionally took hours or even days to compile.
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Leveraging APEX:E3's advanced big data analytics, search technology, and GenAi LLM integration, our app delivers this robust solution.
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The APEX:E3 Earnings Analyser app can be accessed from the main page of A.L.I.C.E as shown above.
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The A.L.I.C.E Generative A.I. framework is seamlessly integrated into this app to facilitate fundamental stock screening and deliver insights drawn from earnings transcripts and financial statements.
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The underlying data is derived from financial statements, including balance sheet, income statement, and cash flow statement available in annual and quarterly formats from 10-K and 10-Q SEC filings.
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Presently, the apps coverage encompasses only constituents of the S&P 500, with an expansion strategy in place to substantially broaden the range of covered stocks in the foreseeable future.
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Earnings transcripts have been sourced directly from company websites.
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All data emanates from a mixture of 3rd parties and direct API based ingestion.
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Data is refreshed frequently.
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The application harnesses the APEX RAG+GPT 4 Turbo LLM model. As a result, this app can be seamlessly integrated with an organisation's dedicated Enterprise OpenAI GPT 4 Turbo dedicated LLM if required.

This app incorporates a suite of AI-driven features, including:

Generally, the screener table allows for intuitive searching, filtering, and customisation of columns through user-friendly interactions. Once the screening is refined, you can prompt A.L.I.C.E to evaluate the results, thereby streamlining your analysis process and freeing up time for more strategic tasks.
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1. Select Screener: At the top right of the interface, you can choose either to use the stock screener tool to filter through multiple stocks or select an individual stock for a more detailed analysis. Select the Screener option.
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2. The screener is initially sorted by Market Cap TTM (Trailing Twelve Months) descending.
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​Screener table functions
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3. Filtering & Searching - You can use the filter options in the table to narrow down the list of stocks. E.g. you can filter by typing into the search box under "Name" or selecting options under "Sector". You can also filter numerical columns using conditional criteria.
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4. Add/Remove Columns in the Key Metrics Chooser: The interface allows customisation of the data you see. You can add or remove columns in the table by clicking on the button indicated in the image above, which opens a menu where you can select which columns to display or hide. (Column configuration is not saved in the current version of this app).
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5. Switching between Key Metrics and Key Ratios - as shown below, clicking on the left button will show Key Metrics. Clicking on the right button will show Key Ratios.
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6. Additional Pages of Data: If the data spans multiple pages, you can navigate through these by clicking on the page numbers at the bottom right of the table.

7. You can interact with A.L.I.C.E, on the left hand side, to get assistance in analysing the screened stock metrics and ratios . You should input your questions or commands in the chatbox at the bottom left corner of the interface where it says "Type your message...".
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For additional examples on utilising the screener, please refer to the Examples of Using the Screener section below.
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The Earnings Transcript Analyser feature empowers users to perform comprehensive analyses of individual stocks with ease. By selecting an earnings transcript along with a financial statement, users can leverage A.L.I.C.E to either summarise the call or conduct an analysis that considers both the call and the chosen financial statement. This functionality streamlines what is typically a complex and time-consuming process, saving users both time and effort.
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1. After selecting a stock, you will now be able to select an earnings transcript associated with the stock as shown below:
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2. You can type in a year and then select a quarter.
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3. After selecting the relevant quarter, the earnings transcript text for that period will be retrieved, as shown below:
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4. To choose a financial statement, simply click on one of the relevant tabs, as demonstrated in the example below where the "Key Metrics" tab is selected. Additionally, you have the flexibility to toggle the time horizon between quarterly and yearly.
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5. The selected financial statement or key metrics/ratio analysis will be used by A.L.I.C.E when answering questions about Uber (which is the selected stock in this case).
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For additional examples on utilising the Earnings Transcript Analyser, please refer to the Examples of Using the Earnings Transcript Analyser section below.
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Examples of Using the Screener
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In this example the user wanted A.L.I.C.E to analyse Boeing and Lockheed Martin on a fundemental basis.
They undertook the following steps:
1. Add the Sub Sector column
2. Filter on Aerospace & Defence sub sector
3. Ask A.L.I.C.E : Compare Boeing and Lockheed Martin
4. A.L.I.C.E will analyse the table data on page 1, including the displayed columns. If you wish for A.L.I.C.E to consider additional information, you are free to add more columns.
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Here is how A.L.I.C.E answered the question:
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​<START OF A.L.I.C.E answer>
To compare Boeing and Lockheed Martin based on the provided metrics, let's examine each key metric side by side:

1. PE Ratio (Price/Earnings Ratio, TTM):

- Boeing: -56.39990371697268 (negative PE indicates a lack of profitability over the trailing twelve months)

- Lockheed Martin: 14.942317919075146

- Analysis: Lockheed Martin has a positive PE ratio, indicating profitability in the last year, while Boeing's negative PE ratio suggests it incurred losses during the same period.

2. Market Capitalization (Market Cap, TTM):

- Boeing: $126,072,195,050

- Lockheed Martin: $101,900,853,100

- Analysis: Boeing has a higher market capitalization than Lockheed Martin, signifying it is valued more highly by the market.

3. Enterprise Value (EV, TTM):

- Boeing: $165,688,195,050

- Lockheed Martin: $117,917,853,100

- Analysis: Boeing’s enterprise value is also higher, indicating a larger total company value including debt.

4. PB Ratio (Price/Book Ratio, TTM):

- Boeing: -7.308128880635989 (negative, indicating issues such as net losses or negative shareholders' equity)

- Lockheed Martin: 15.128140453547916

- Analysis: Lockheed Martin has a significantly higher PB ratio, which typically indicates a perceived higher market value relative to its book value compared to Boeing.

5. EV to Sales (TTM):

- Boeing: 2.1298325712779906

- Lockheed Martin: 1.745095575024789

- Analysis: Boeing has a higher EV to Sales ratio, indicating that for every dollar of sales, its enterprise value is higher. This could suggest the market values Boeing's sales more highly, or it has higher debt levels relative to its sales.

Based on these metrics, Lockheed Martin has shown profitability over the last year with a positive PE ratio, whereas Boeing has faced losses, as indicated by its negative PE ratio. Boeing, however, is considered to be valued more highly by the market with a greater market cap and enterprise value. Despite this, Lockheed Martin presents a stronger PB ratio, suggesting better valuation relative to its book value. Lastly, Boeing's higher EV to Sales ratio may reflect higher market expectations or debt levels in comparison to Lockheed.
​<END of A.L.I.C.E answer>

Examples of Using the Earnings Transcript Analyser
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In this example the user wanted to analyse Boeing's recent earnings call and cross refrence performance with peers. Thet also wanted to compare earnings call of Boeing and Lockheed Martin for the same year and quarter.
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1. Choose Boeing
2. Choose the Q4 2023 transcript
3. Select the Peers tab with a yearly time horizon
4. Add the sub sector column
5. Filter on the Aerospace & Defence sub sector
6. Ask A.L.I.C.E to the summarise the call.
7. Perform the above steps for Lockheed Martin
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The ask A.L.I.C.E to compare, as shown below:
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Here is how A.L.I.C.E answered :
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<Start of A.L.I.C.E answer>
When comparing the summaries of the Boeing and Lockheed Martin third-quarter 2023 earnings calls, several key differences and notable aspects emerge based on the context provided and the peers' data:

1. Corporate Outlook and Performance:

- Boeing highlighted its ongoing recovery, emphasizing staying on track to meet its financial goals, including a focus on achieving $10 billion in free cash flow by the 2025/2026 timeframe. The call stressed issues within its supply chain, particularly noted in the 737 aft pressure bulkhead, and the adjustment of delivery estimates for the 737.

- Lockheed Martin reported solid third-quarter performance with sales increasing by 2% year-over-year to $16.9 billion and a strong free cash flow of $2.5 billion. The company also reaffirmed its full-year 2023 financial outlook and demonstrated confidence in the demand for its products, highlighted by the F-35 program's continued interest both domestically and internationally.

2. Strategic Initiatives and Outlook:

- Boeing discussed its challenges and the steps being taken to address them, including supply chain stabilizations and adjustments in product delivery estimates. The prospect of meeting its long-term financial targets despite immediate challenges was a focal point.

- Lockheed Martin showcased its strategic initiatives geared towards "21st Century Security," emphasizing integrated deterrence and operational advances, including technological upgrades to the F-35 program and multiple international defense engagements. Lockheed Martin's strong international deals and strategic defense partnerships stood out, signifying a robust global footprint and demand for its high-tech defense products.

3. Financial Health and Projections:

- Boeing's financial health appeared challenged, given the mention of negative PE ratio and the context around its recovery efforts and the adjustment of its delivery expectations.

- Lockheed Martin provided a more solid financial overview, with a positive PE ratio, a growing sales record, and strong performance in cash flow. Additionally, Lockheed Martin's emphasis on its backlog and the anticipation of future growth highlighted a strong financial and operational position.

4. Sector Specific Metrics (based on provided peers data):

- Comparing to other peers in the sector, Lockheed Martin stands out with a moderate PE ratio (14.94) and sizeable market capitalization ($101,900,853,100) with an emphasis on its defense portfolio, particularly the F-35. Its PB ratio (15.13) and EV to Sales ratio (1.745) suggest a strong valuation and efficiency in sales conversion.

- Boeing, on the other hand, with a negative PE ratio, indicates recent struggles but it also has a higher EV to Sales ratio (2.129), which alongside its strategic responses to supply chain challenges, shows potential for recovery and growth anticipation in its commercial aircraft segment.

Conclusion:

The Boeing call focused more on operational recovery, financial stabilization, and overcoming supply chain hurdles. In contrast, Lockheed Martin's call emphasized strategic expansions, technological advancements, and secure financial footing, showcasing strong demand for their defense-oriented products and services internationally. Lockheed Martin appears more financially solid and strategically positioned for future growth, whereas Boeing demonstrates a focus on overcoming current challenges and positioning for future
​<End of A.L.I.C.E answer>

We welcome your feedback. Please reach out to your APEX:E3 A.L.I.C.E representative with your comments. Thank you!