Yeah I know as 100xdev we all need to manage our finances and we all at some point will be investing in bonds, stocks and other assets. but for now I recently discovered a tool called OpenBB because of oss.gg and guess what? it’s Open-source better than any paid software on earth for financial analysis and various other things.

Investing in the stock market is like picking the perfect mango — you need to choose wisely to avoid the sour ones! With so many stocks out there, how do we find the best ones? This is where fundamental analysis steps in. By diving deep into a company’s financial health, we can make informed decisions that help us invest confidently. And when it comes to tools, OpenBB is your best friend for getting accurate and detailed data. Let’s explore how OpenBB can revolutionize your stock market research.

What is Fundamental Analysis?

Fundamental analysis involves studying a company’s financial statements to understand its intrinsic value. You’re looking at revenue, profit, cash flow, balance sheets, and other key metrics that reveal whether a stock is overvalued, undervalued, or just right. This kind of analysis is particularly important for long-term investors who believe in the principle of buying stocks that are fundamentally strong.

Introducing OpenBB - OpenSource Financial software

OpenBB is a powerful open-source tool that provides extensive financial data and analytics. You can use it to fetch detailed stock data from various sources like yFinance, FMP (Financial Modeling Prep), Intrinio, and Polygon. Whether you’re a beginner or a seasoned analyst, OpenBB has something for everyone.

Here’s how OpenBB helps in pulling critical financial metrics for fundamental analysis.

Step-by-Step Guide: Using OpenBB for Fundamental Analysis

1. Installing OpenBB

To start with OpenBB, you need to install it first. If you haven’t done that yet, it’s super easy:

pip install openbb

Once installed, you can fire up a Jupyter notebook or use it directly in your terminal to start your analysis.

2. Pulling Balance Sheet Data for Target Corporation

Let’s take an example of Target Corporation (TGT). We’ll pull the balance sheet data from multiple providers and compare their results.

import pandas as pd
from openbb import obb

df = pd.DataFrame()

df["yfinance"] = (
    obb.equity.fundamental.balance("TGT", provider="yfinance").to_df().get("total_assets").head(3)
)

df["fmp"] = (
    obb.equity.fundamental.balance("TGT", provider="fmp", limit=3).to_df().get("total_assets")
)

df["intrinio"] = (
    obb.equity.fundamental.balance("TGT", provider="intrinio", limit=3).to_df().get("total_assets")
)

df["polygon"] = (
    obb.equity.fundamental.balance("TGT", provider="polygon", limit=3).to_df().get("total_assets")
)

df

In this code, we use OpenBB to retrieve the total assets of Target from four different data providers: yFinance, FMP, Intrinio, and Polygon. It allows us to cross-check the data from various sources for accuracy. As you can see, the numbers match across providers, giving us confidence in their reliability.

3. Analyzing Income Statements for Target

Next, let’s dive into the income statement. Specifically, we’re interested in the weighted average basic shares outstanding, a key figure used to calculate earnings per share (EPS).

data = obb.equity.fundamental.income("TGT", provider="fmp", limit=150, period="quarter").to_df()
shares = data["weighted_average_basic_shares_outstanding"] / 1000000

print(shares.head(1))  # First quarter data
print(shares.tail(1))  # Most recent quarter data

Here, we’re pulling 150 quarters’ worth of income data and extracting the basic shares outstanding. By dividing it by a million, we can easily see the figures in millions of shares.

4. Why Does This Matter?

The weighted average shares outstanding is crucial because it helps investors understand how diluted or concentrated the company’s ownership structure is. If a company has been issuing a lot of shares, it might dilute existing shareholders’ value.

With OpenBB, you get access to both historical and recent data, helping you track any trends or anomalies.

Why Use OpenBB?

• Cross-Provider Data: OpenBB allows you to pull data from multiple providers (as seen in the balance sheet example) and cross-check the accuracy.

• Comprehensive Metrics: Whether it’s balance sheets, income statements, or cash flows, OpenBB provides all the fundamental data you need.

• Easy-to-Use: With a few lines of Python, you can retrieve detailed stock data, making fundamental analysis much more accessible for retail investors.

Conclusion

Investing without proper research is like driving with a blindfold on — you’re bound to crash. But with tools like OpenBB, you can arm yourself with solid data and insights. For anyone serious about long-term investments, using OpenBB for fundamental analysis is a game-changer.

So, what are you waiting for? Download OpenBB today, analyze your favorite stocks, and start making informed investment decisions! By the way before leaving please drop a comment and like and don’t forget about Oss.gg