About nanx.io

TL;DR: nanx.io helps investors by systematizing fundamental analysis of public companies. We take the complexity of accounting, plus all the information noise investors face, and distill it into a set of normalized, easy-to-use scores covering the most important aspects of a company's finances.

Courtyard of one of the world's first stock exchanges. Amsterdam, circa 1670.

Investing is hard. It takes more than a few courses and books to master, and there is still no single, settled theory to guide you through it. nanx.io helps you cut through this complexity by systematizing the fundamental analysis of companies.

Every company investment boils down to three fundamental questions: how profitable the company is, how solvent it is, and whether its price is fair. Put another way:

1. Is it profitable? Will we get back more capital than we put into it?
2. Is it solvent? Can it keep operating as usual without burning through capital just to pay down its liabilities?
3. Is its price on the secondary market reasonable, in line with its profitability and solvency?

nanx.io automates the calculation of these three variables using state-of-the-art accounting analysis techniques. Our methodology builds on the Value Investing framework (especially for the price/free cash flow score) and on the Austrian School of Economics.

Using the Scores

The math behind the scores is complex; using them is not. Every score is normalized to a 0-to-10 scale, so you can grasp it at a glance.

For example, take a company with these scores:

• Firm profitability score = 8
• Dynamic solvency score = 9
• Price/free cash flow score = 2

You will see this pattern over and over: highly profitable, solvent companies tend to be expensive. Everybody wants them in their portfolio, that demand pushes the price up, and the valuation ends up stretched.

The ideal investment scores high on all three fronts. Companies like that are rare in bull markets and much easier to find in bear markets. nanx.io includes a very powerful screening tool to help you hunt them down.

Main Scores

The investment score is the headline number: it summarizes profitability, solvency, and price into a single value.

It combines two sub-scores. The quality score reflects the company's economic profitability, while the price score reflects whether the stock trades at a fair price on the secondary market.

In short, the investment score gives you an at-a-glance view of a company's financial health plus its stock's valuation.

Solvency

Few things hit a stock price as hard and as fast as insolvency. Our dynamic solvency score helps you steer clear of companies at risk of going under.

It could have kept you out of names like China Evergrande Group, which fell into technical default in 2021; Eastman Kodak, which filed for bankruptcy in 2012; and General Motors, which filed for Chapter 11 in 2009. In all three cases, our dynamic solvency score had already dropped to zero long before the trouble became public knowledge: Evergrande since June 2019, Kodak since 2009, and General Motors since 2008.

Other Scores

Beyond the scores above, nanx.io computes another 20+ scores per company. Each one is our take on an existing, state-of-the-art accounting analysis technique. A few examples:

• The dynamic and static solvency scores draw on the solvency research of Vicente García Martín and Manuel Fernández Gámez, professors at the University of Málaga who have built one of the most comprehensive solvency analysis frameworks available.

• The valuation scores (price/free cash flow, price/balance, and price/free earnings) follow the value investing framework. They compare the stock's market price with the company's free cash flows, balance sheet structure, and free earnings.

• The zone score is based on the "Index of Economic Freedom" published by the Heritage Foundation.

• And more, each covering an aspect of the company that matters from an investor's point of view.