What is the FG Score?
The FG Score is FAST Graphs' proprietary financial health rating system that evaluates companies on a 0–100 scale across five key dimensions of financial performance. It provides a quick, objective way to assess a company's overall quality relative to its peers and the broader market.
How to Read Your FG Score
The Total Score (0–100)
At the top of the scoring page, you'll see an overall FG Score out of 100:
Score Range | Rating | What It Means |
80–100 | Excellent | Top-tier financial quality; strong across most metrics |
60–80 | Good | Above-average performance; solid fundamentals |
40–60 | Average | Middle-of-the-pack; mixed strengths and weaknesses |
20–40 | Poor | Below-average performance; notable weaknesses |
0–20 | Very Poor | Significant concerns across multiple areas |
The colored dot next to each score provides an instant visual indicator:
Dark Green = Excellent (80–100)
Light Green = Good (60–80)
Yellow = Average (40–60)
Orange = Poor (20–40)
Red = Very Poor (0–20)
The Five Pillars
The FG Score breaks down into five pillars, each measuring a different aspect of financial health.
1. Profitability
What it measures:
How efficiently the company converts revenue into profits and returns for shareholders.
Key metrics include:
Gross Margin – How much profit remains after direct costs
Net Margin – Bottom-line profitability as percentage of revenue
Operating Margin – Efficiency of core business operations
Return on Equity (ROE) – Profit generated per dollar of shareholder equity
Return on Invested Capital (ROIC) – How efficiently capital is deployed
Why it matters:
Higher profitability means the company keeps more of every dollar earned, which can fund growth, dividends, or debt reduction.
2. Cash Flow Generation
What it measures:
The company's ability to generate real cash (not just accounting profits).
Key metrics include:
Free Cash Flow Margin – Cash remaining after operating expenses and capital expenditures
Cash Return on Invested Capital – Cash-based return on capital deployed
Cash Conversion Ratio – How much reported earnings convert to actual cash
CapEx Intensity – Capital reinvestment requirements (lower is generally better)
Why it matters:
Cash is king. Companies with strong cash generation have flexibility to invest in growth, weather downturns, and return value to shareholders.
3. Financial Strength
What it measures:
Balance sheet health, solvency, and the company's ability to meet obligations.
Key metrics include:
Net Debt to EBITDA – Years of earnings needed to pay off debt (lower is better)
Interest Coverage Ratio – Ability to pay interest on debt
Cash to Debt – Liquidity buffer available
Altman Z-Score – Composite measure of bankruptcy risk
Current Ratio – Ability to pay short-term obligations
Debt to Capital – Overall leverage (lower is generally safer)
Why it matters:
A strong balance sheet provides resilience during economic stress and flexibility to pursue opportunities.
4. Growth
What it measures:
The company's ability to expand revenue, earnings, and cash flow over time.
Key metrics include:
Revenue CAGR (5-Year) – Compound annual revenue growth
EBITDA CAGR (5-Year) – Operational earnings growth
EPS CAGR (5-Year) – Earnings per share growth
Free Cash Flow CAGR – Cash flow growth over 5 years
Growth Consistency – Steadiness of growth (penalizes volatility)
Recent Momentum – Quarter-over-quarter revenue growth
Why it matters:
Consistent growth indicates a sustainable competitive advantage and the potential for future value creation.
5. Predictability
What it measures:
How accurately analyst forecasts match actual results – a proxy for business stability and transparency.
Key metrics include:
EPS Analyst Score (1-Year & 2-Year) – Accuracy of earnings estimates
Revenue Analyst Score – Accuracy of revenue forecasts
Cash Flow Analyst Score – Predictability of cash generation
Why it matters:
More predictable companies tend to be lower risk and easier to value. Frequent surprises (positive or negative) can indicate volatility or management issues.
Understanding the Comparison Groups
Each metric is scored against three comparison groups.
Industry Ranking
Compares the company to its peer group – companies in the same industry and business type. This answers:
“How does this company perform relative to direct competitors?”
Market Ranking
Compares the company to the entire investable market (S&P 500 for US stocks, NIFTY 500 for Indian stocks). This answers:
“How does this company stack up against all companies?”
Historic Ranking
Compares the company's current metrics to its own 20-period history. This answers:
“Is the company performing better or worse than its historical average?”
How Scores Are Calculated
The FG Score uses a proprietary methodology that combines multiple metrics within each pillar, then aggregates pillar scores into a total score. The calculation considers:
Industry comparison – How the company performs vs. peers
Market comparison – How the company performs vs. the broader market
Historical comparison – How the company performs vs. its own history
Data Quality
If some metrics can't be calculated due to missing data, the score adjusts accordingly to prevent inflated or misleading results. Companies must have sufficient data coverage to receive a score.
Special Considerations
Illiquid Securities
Companies with very low trading volume (“illiquid”) do not receive an FG Score. This prevents misleading comparisons for stocks that may have pricing anomalies.
Negative Indicators
Some metrics are “reverse scored” where lower is better:
High debt ratios = lower score
High CapEx intensity = lower score
Large ROE-to-ROIC gaps = lower score
The system automatically handles this so higher scores always mean better performance.
Industry Context
A company might score 50 in Market comparison but 80 in Industry comparison. This means the company excels within its peer group but operates in a sector that underperforms the broader market.
How to Use FG Scores
For Stock Screening
Use FG Scores to filter for high-quality companies across any sector. An overall score above 70 typically indicates strong fundamentals.
For Stock Analysis
Drill into individual pillars to understand where a company excels or struggles. A company with high profitability but weak financial strength may have different risk characteristics than one with moderate scores across the board.
For Comparison
Use the peer comparison features to see how your target company stacks up against direct competitors. Even an “average” score of 50 might be excellent in a challenged industry.
For Trend Analysis
Click on “Current” values to see historical trends. Improving metrics over time can be as valuable as current high scores.
Limitations to Keep in Mind
Backward-looking: Scores reflect historical financial data, not future prospects
Industry differences: Some sectors naturally score lower on certain pillars (e.g., utilities have lower growth)
Size matters: Smaller companies may have more score volatility
Not investment advice: FG Score is one tool among many for investment research
Quick Reference Card
Element | What to Look For |
Total Score | 70+ is strong; 50–70 is acceptable; below 50 warrants investigation |
Radar Chart | Large, balanced pentagon = well-rounded company |
Color Dots | Green = strength; Yellow = average; Red = concern |
Industry vs Market | High industry + low market = good company in weak sector |
Historic Trend | Improving scores over time is a positive signal |
Peer Comparison | Upper-right position in bubble chart = leader |