Loss Indicator™ (LI™)

Numeric Scale: 150 (best) to -250 (worst)

A measure of a company’s liquidity, financial strength, and durability.

• “A” or “A+”: Strong financial health, with a low likelihood of liquidity issues or structural weakness.
• “B”: Overall financially stable. May have some moderate vulnerabilities worth monitoring.
• “C”: Average financial condition. No major strengths or weaknesses.
• “D”: Emerging signs of financial risk, such as rising debt or weakening liquidity, which may threaten long-term resilience.
• “E” or “F”: Significant financial weakness, with critical liquidity or solvency concerns that pose a high risk to investors.

Fiduciary Stock Navigator™ (FSN™)

Numeric Scale: 150 (best) to -250 (worst)

A rating of both the financial condition and valuation of a stock.

• “A” or “A+”: Both financially strong and growing, while also priced attractively, making it a solid investment.
• “B”: Relatively strong with some growth potential, making it a reasonable investment.
• “C”: Moderate strength and stable fundamentals, but it is neither particularly inexpensive nor overpriced.
• “D”: Weakening or showing signs of trouble, and it is becoming expensive relative to its value.
• “E” or “F”: Weak or deteriorating, and likely overpriced, presenting significant investment risks.

4 Dimensions of Risk™ (4D™)

Numeric Scale: 150 (best) to -250 (worst)

Measures risk across four core dimensions—solvency, valuation, profitability, and tangible equity—to quantify the overall probability and magnitude of loss.

• “A” or “A+” – Very strong; indicates exceptionally low overall financial and valuation risk.
• “B” – Solid strength in most dimensions, with only modest weaknesses; reflects generally low risk with manageable concerns.
• “C” – Average strength across the four dimensions; reflects neutral, mid-range risk that warrants normal monitoring.
• “D” – Noticeable weaknesses in one or more dimensions; reflects elevated risk and reduced financial resilience.
• “E” or “F” – Significant deterioration ; signals high vulnerability and substantial risk of loss.

Valuation Metric 1™ (V1™)

Numeric Scale: 150 (best) to -250 (worst)

Identifies where the company’s current price-to-sales ratio sits within its own historical P/S range, indicating whether valuation is low, middle, or high relative to its past.

• “A” or “A+” – P/S ratio is near the lowest end of the company’s historical range; historically attractive valuation.
• “B” – P/S ratio is moderately below the midpoint of its historical range; relatively favorable pricing.
• “C” – P/S ratio is near the middle of its historical range; neither cheap nor expensive based on past norms.
• “D” – P/S ratio is above the midpoint of its historical range; valuation is becoming historically elevated.
• “E” or “F” – P/S ratio is near the top of its historical range; historically expensive and potentially exposed to downside risk.

eLiquidity™

Numeric Scale: 150 (best) to -250 (worst)

Evaluates short-term financial flexibility using objective liquidity ratios such as the current ratio, quick ratio, and cash ratio.

• “A” or “A+” – Very strong liquidity ratios; ample short-term financial flexibility and excellent capacity to meet obligations.
• “B” – Solid liquidity levels; generally able to cover short-term needs with modest cushion.
• “C” – Adequate liquidity; sufficient coverage of near-term obligations but with limited margin for stress.
• “D” – Weak liquidity; ratios indicate constrained flexibility and potential pressure during financial stress.
• “E” or “F” – Very poor liquidity; insufficient short-term coverage and high vulnerability to cash-flow disruption.

eStrength™

Numeric Scale: 150 (best) to -250 (worst)

Assesses the company’s underlying financial strength by examining balance-sheet quality, leverage, and stability of financial resources.

• “A” or “A+” – Very strong balance-sheet health with low leverage and robust financial resources.
• “B” – Solid financial strength; manageable leverage and generally stable core metrics.
• “C” – Average strength; adequate but unexceptional balance-sheet quality and leverage levels.
• “D” – Weak financial strength; elevated leverage or declining core resources signal rising vulnerability.
• “E” or “F” – Very weak financial condition; high leverage or deteriorating resources indicate significant financial risk.

eDurability™

Numeric Scale: 150 (best) to -250 (worst)

Measures the consistency and resilience of revenues, margins, and business performance over time.

• “A” or “A+” – Very consistent, resilient long-term performance, with stable revenues and margins.
• “B” – Generally durable performance with only modest variability over time.
• “C” – Average consistency; results fluctuate in line with typical business-cycle patterns.
• “D” – Noticeable inconsistency; revenues or margins show meaningful volatility or decline.
• “E” or “F” – Very weak durability; highly erratic or deteriorating performance signals elevated long-term risk.

eValuation™

Numeric Scale: 150 (best) to -250 (worst)

Quantifies the statistical relationship between current valuation metrics and long-term fundamentals to estimate downside risk and potential valuation compression.

• “A” or “A+” – Valuation is very low relative to long-term fundamentals; historically favorable with minimal compression risk.
• “B” – Moderately low valuation; attractively priced with limited downside from valuation factors.
• “C” – Neutral valuation; pricing aligns with long-term fundamental levels and typical historical norms.
• “D” – Elevated valuation; pricing is above fundamental support and carries meaningful compression risk.
• “E” or “F” – Very high valuation; significantly exceeds fundamental levels and signals substantial downside risk.