Newsletters

New Dashboards, Start-up fund on Invest Like the Best, and Top Growing Companies

October 12, 2021

You know earnings are just around the corner when another Canalyst newsletter drops! In this edition, we share the new dashboards investors are using to leverage our fundamental data, the Invest Like the Best interview with Canalyst client BWCP, and where our 2,223% growth rate put Canalyst on a list of top growing companies. Plus, we’re hiring like mad. Read on...

New Canalyst Dashboards

Speed up idea generation and stock screening by going straight to the most important company reported metrics

Nothing beats having access to clean fundamental data, and with the recent launch of our new Dashboards, investors can leverage our clean fundamental data sets to make informed decisions faster than ever.

We identify the constituent companies and key metrics for a given industry. Our team of analysts then dive deep into the company reports to collect the key company reported data. They spend hours reading footnotes, reviewing investor presentations, analyzing charts to detect the hard-to-find reported key metrics so that you don’t have to.

Canalyst Dashboards package all of the key metrics, together with clean fundamental valuation, growth, margin, and liquidity metrics into one place so that you can focus on your analysis.

Some of our more popular dashboards include:

Enterprise SaaS Dashboard — Get a head start by analyzing key metrics like ARR, Remaining Performance Obligations (RPOs), Billings, Magic number, Rule of 40, and Payback Period for companies including SNOW, ZM, CRM, DOCU, and 60+ more names.

Internet Retail Dashboard — Stay on top of performance metrics including GMV Growth, GMV per Buyer and Seller, Order Growth, Take Rate Change, for companies like AMZN, EBAY, ABNB, and 27+ more names.

Payments Dashboard — Understand how the number of transactions, Take Rate, Total Processing Volume (TPV), Payments Revenue, and more differ across the key players, including PYPL, ADYEN, and SQ.

Recent IPOs Dashboard — Compare key Pricing, Transaction Summary, Share Analysis, Proceeds, and Valuation data for more than 80 recent IPO models including HOOD, DUOL, DNUT, DOCS, and XMTR.

Switch to the Charts Tab at the bottom of a dashboard to get a visual presentation of key data across tickers:

Increase your edge by identifying trends ahead of the rest, and access all of our Dashboards directly from the portal here.

Not yet a Canalyst client? Request a demo to learn more about Canalyst Dashboards today.

Invest Like the Best: BWCP

Start-up fund saves 1-2 analysts per year with Canalyst

We’re big fans of Invest Like the Best, tuning in each week as Patrick O’Shaughnessy interviews the best and brightest of the investing world. Recently, Patrick sat down with Canalyst client Brandon Wier, Founder and Portfolio Manager of BWCP, LP, a fundamental-oriented hedge fund manager based in Dallas, Texas. The full interview covers everything from Brandon’s advice for start-up fund managers to how Canalyst is reducing friction in various steps of the investment process. Here are the highlights:

Patrick: Setting up a new investment firm, there’s a lot you need to do. It’s a lot of effort. I’ve seen it done. I’ve done it myself. I know that it’s difficult. And I think companies and research is one aspect that gets talked about less, like most of the focus is on legal and systems and team and all this kind of stuff. How has Canalyst been a part of that early set-up? What did the company models allow for, relative to your prior experience, that let BWCP get up and going faster and how were they used in the early days?

Brandon: Let’s paint a picture. You’re running a two plus billion dollar hedge fund inside of Citadel. You have a team of six. You don’t even know what back-office means because every single thing is taken care of and you have a lot of resources. You have a lot of young analysts who need to spend a lot of time doing the Citadel way or whatever that is.

Roll that forward. I have a couple analysts myself, a small back office, friends and family capital and, and my own money, basically our internal capital. We’ve got to figure out how to divvy up resources because right now there’s two things that are our most limited things: time and money. We have to find, across the board, where we can use our analyst time to do the things that are most impactful to the research process and where we can outsource with great partners to leverage both that time and money, and that’s where Canalyst came in.

We asked some of our friends about best practices, where they got data, how they utilize their limited resources upfront, and Canalyst came up time and time again.

So what Canalyst does for us: think about the amount of time that it takes to set up a model, to build a proper model, to update that model each quarter. For the number of stocks that we look at, we’re saving one and a half to two analysts a year. It sounds like a huge number, but that’s probably only looking at maybe 100 to 200 companies. If you were to do that right, that’s probably what it would take from a manpower point of view. Now, if you think about the research process, what is it about the model that’s so important? Models are the output of a lot of inputs and the value-add that we need to spend our time on with our team on is: what are the inputs? What are the numbers?

Patrick: How do you think about the uniqueness of company models that Canalyst has provided? You know, sector to sector. So you mentioned TMT being a focus. I think GAAP accounting is great, but it also isn’t perfect as a way to interpret or measure or investigate how a specific company works. Say a little bit about company specific metrics, KPIs, you know, things that matter for one business that might not matter for another and how that factors into modeling.

Brandon: So that’s the other important part. I’ve used services in the past that kind of give you sort of a starting place. There’s two problems with those. One, they don’t have hardly anything above sales, and to us, usually in the TMT space in particular, the top line is one of the more important variables. Margins have less controversy, but are obviously important. Which brings us to free cash flow. So when you’re using a generic service, sometimes you can get the basic building blocks of what’s reported and maybe a queue, with no context above for what’s maybe reported on conference calls.

“Canalyst adds that extra layer, which is important. But the most important part of it is: the models live with us. So everything that we change or that we adapt to the things that we need, even, even if it’s not already preloaded, we can add that and the model just simply updates.”

I used to have to send models away. And when they came back, they were stripped of anything that I added, any cells that I’ve edited, and that has been a problem. Now, the model sitting here with us and the reason that’s important is because those models lead to our investment templates, our investment spreadsheets. Those investment spreadsheets are the things in which we pitch our stocks off of in our internal meetings, which then flow into our rankings. Our rankings are what create discussions about what in the world is going on.

“You put a number into a model with Canalyst and it stays on my system and goes all the way through to price-target changes.”

I do it somewhere else and it has to be sent out, the links break, it comes back, and all the work that we’ve done updating is gone.

“So it really is, again, how do we focus our attention on what is the most valuable stuff that we can do with the least amount of friction? And that’s the important part, when you’re using the Canalyst system, there’s no friction. It allows us to maintain our process.”

To listen to the entire interview, visit here our website here.

Canalyst in the News

We are pleased to share that Canalyst placed No. 26 on the 2021 Report on Business ranking of Canada’s Top Growing Companies. Canada’s Top Growing Companies ranks companies on three-year revenue growth. Canalyst earned its spot with three-year growth of 2,223%!

Launched in 2019, the Canada’s Top Growing Companies editorial ranking aims to celebrate entrepreneurial achievement by identifying and amplifying the success of growth-minded, independent businesses in Canada. The full list of 2021 winners, and accompanying editorial coverage, is published in the October issue of Report on Business magazine—out now—and online.

“Any business leader seeking inspiration should look no further than the 448 businesses on this year’s Report on Business ranking of Canada’s Top Growing Companies,” says Phillip Crawley, Publisher and CEO of The Globe and Mail. “Their growth helps to make Canada a better place, and we are proud to bring their stories to our readers.”

We’re Hiring!

Canalyst is changing the landscape for investment professionals worldwide by transforming how they access and use fundamental models and data, thanks to a dedicated, growing team of smart individuals from various disciplines.

We invest in each employee by providing the support, resources, and opportunities to succeed and learn. There are a number of open roles at Canalyst, so if you know someone who would be a strong fit, please send them our way!

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