Start with primary sources
Financial statements and company disclosures, including filings in the SEC EDGAR database.
STONE CITY CAPITAL
We research businesses.
We explain
our findings.
Behind the market price is a business.
Behind our valuation is research.
We study companies and financial markets. We explain the data and assumptions behind our findings.
SCC / RESEARCH01 — 03
01 / DATA
02 / BUSINESS
created
How value is
created
03 / VALUATIONData.
Analysis.
Findings.
Analysis.
Findings.
STONE CITY CAPITAL ↗
Understanding a business
is the foundation of its valuation.
Independent perspective · Fundamental analysisScroll to explore
01 / ABOUT SCC
Understanding what
the numbers mean.
Stone City Capital is an independent investment research firm.
We research companies and financial markets, study financial statements and explain the foundations of business valuation.
We ask how a company earns money, how resilient its position is and how it uses capital. These questions help reveal the economics behind the numbers.
01
Business before price
We consider market prices in the context of business economics.
02
Findings with evidence
We connect data, assumptions and valuation.
03
Risk in perspective
We examine adverse scenarios alongside business prospects.
02 / OUR RESEARCH APPROACH
From financial statements
to business understanding.
Fundamental analysis is a structured examination of primary sources, business economics and assumptions about the future.
Understand the business
How a company earns money, what drives its profitability and how resilient its competitive position is.
Examine the valuation
We compare the market price with an estimate of intrinsic value, making assumptions and conditions for revision explicit.
One metric is not enough. Context matters.
03 / OUR ANALYTICAL FOCUS
The questions
we ask of a business.
Numbers become meaningful when we understand
what drives them.
BUSINESS ECONOMICS
What drives the result?
We examine sources of revenue, the cost structure and changes in profitability. We ask whether results reflect lasting changes or temporary factors.
Revenue→Costs→Profit
We look at relationships, not isolated numbers.
USE OF CAPITAL
How does the company use capital?
We consider returns on capital in the context of the business model. Both current performance and the ability to sustain it over time matter.
Capital→Business→Results
We examine the economics behind the metrics.
VALUE AND RISK
What supports the valuation?
We compare the market price with an estimate of intrinsic value, distinguish facts from assumptions and consider when a conclusion would need to change.
Data→Assumptions→Valuation
Future results may differ from expectations.
04 / WHO WE WRITE FOR
For those who look
years ahead.
Our materials address, among others, owners of substantial private capital with long-term investment objectives.
A long-term perspectiveUnderstanding · Continuity
Business owners
Understanding the companies they are considering investing in.
Executives
Accessing reasoned findings without independently working through extensive financial disclosures.
Families
Assessing decisions over a 10–20 year horizon and planning the transfer of capital to the next generation.
05 / SCC RESEARCH
Clear reasoning.
Grounded findings.
We explain professional terminology, separate facts from assumptions and state the limitations of our analysis.
News matters when it helps explain changes in a company or market. We identify what is material and give readers the context they need.
COMPANY MATERIALSGreater depth
Greater depth
in research.
Detailed research on companies and financial markets is available through a paid subscription.
Start with articles about our approach. Follow new publications in the SCC channel.
Research and articles SCC English channel