Cool Company Analysis

You know how there are thousands of companies out there, and it gets overwhelming trying to figure out which ones are worth investing in? Well, I've developed my own framework for analyzing companies, and I want to share it with you!

I call it the Cool Company Analysis. This is going to be the foundation for all my future company deep-dives, so let me break down exactly what you can expect.

First each analysis will be around a 20–30-minute read, nothing too crazy. I will use easy-to-understand language. I will also include linkable table of contents for easy navigation.

Also, I will be updating each analysis periodically to keep them up to date.

Click here for all the analysis I have done.

What's in Each Analysis?

1. The Business Breakdown

First things first - we need to understand how the company actually makes money. I'll break down:

Their business model (in simple terms)
Different ways they make money
Who their customers are
Who they're competing against
How they stack up versus rivals
The TAM

2. The Power Ratings

I rate companies on five key factors that I believe separate the great from the merely good:

Moat (how well they can defend their profits)
Operating Leverage (how profits can grow faster than revenue)
Capital Efficiency (how smartly they use money)
Predictability (how reliable their business is)
Pricing Power (can they raise prices without losing customers?)

Each gets a rating out of 10. When I complete more analysis, I will have a live ranking.

3. Leadership & Vision

We're investing in the future here, so we need to know:

Who's running the show?
What's their track record?
Where do they see the company going?
Is management long-term focused?

4. SWOT Analysis

No company is perfect, and I won't pretend they are. You'll get:

Clear pros of investing
Honest cons and risks
talk about challenges
My take on what matters most

5. Numbers

This could include:

Revenue and profit trends
Margin analysis
Free cashflow/Earnings per share growth
Efficiency metrics
Cash vs. debt situation
Key ratios that actually matter

I'll explain what these numbers mean in plain English.

6. Future Growth

My estimate for annualized returns
Rationale for conservative, likely, aggressive scenarios.
What could go right (or wrong)

7. What's It Worth?

Current market price/valuation
Morningstar's price target and their thoughts
My thoughts on fair value
Whether there's a margin of safety

8. The Verdict: Should You Buy?

I'll wrap up each analysis with my honest thoughts:

Is this a company worth owning?
At what price would I buy?
How it might fit in a portfolio
Any special considerations

Why This Framework?

I created this framework because I wanted something that was:

Thorough but not overwhelming
Clear and easy to follow
Focused on what really matters
Actually, useful for making decisions

Every company I analyze will go through this same process. This helps us:

Stay consistent in our analysis
Compare different companies fairly
Not miss important factors
Make better investing decisions