Business Quality
Is the business genuinely good?
Quality / GARP. Reads: Financials, transcripts, filings.
Surface uses structured inputs plus a 5/10 neutral prior for Deep inputs. Conviction is earned only after cited evidence updates the Deep inputs, so Delta measures what the dig added.
YoY organic growth. Anchor: declining -> about 10% -> greater than 40% durable. Source: fundamentals; surface-computable before the dig.
Level and trend. Anchor: less than 20% and falling -> about 40% stable -> greater than 70% and rising. Source: financials; surface-computable before the dig.
Incremental margin on growth. Anchor: compressing -> flat -> strong expansion. Source: financials; surface-computable before the dig.
FCF margin / FCF to net income. Anchor: burns cash -> roughly converts -> greater than 25% FCF margin. Source: cash flow; surface-computable before the dig.
ROIC vs WACC. Anchor: below cost of capital -> breakeven spread -> greater than 20% ROIC. Source: financials; surface-computable before the dig.
Net cash/debt and coverage. Anchor: stressed leverage -> moderate -> net cash. Source: balance sheet; surface-computable before the dig.
Guidance hit-rate and capital allocation. Anchor: chronic misses/dilution -> in-line -> consistent beats plus smart allocation. Source: transcripts/history; set by cited Deep Dive evidence.
Recurring revenue, retention, backlog. Anchor: lumpy one-off -> mixed -> high recurring plus NRR above 120%. Source: filings; set by cited Deep Dive evidence.
Share trend and pricing. Anchor: losing share -> stable -> gaining plus raising prices. Source: filings/web; set by cited Deep Dive evidence.
Accruals, restatements, red flags. Anchor: aggressive/flags -> clean -> conservative and transparent. Source: 10-K / forensic; set by cited Deep Dive evidence.