Getting Started with Compustat North America - Research Insight

Getting Started with Compustat North America - Research Insight Getting Started with Compustat North America - Research Insight... 1 Introduction... 2 Before you start... 2 Running Research Insight... 2 Retrieving data... 3 Method 1: Data on one company... 4 Exporting Data to Microsoft Excel... 7 Method 2: Collecting data on many companies screening... 9 Retrieving data for the current time period... 13 Retrieving historic data in a time-series request... 16 Help & Definitions Reference... 19 Appendices:... 20 Appendix 1- Another approach to finding data item mnemonics... 20 Appendix 2 - View Modify Data... 22 Appendix 3 - Classic View... 23 Appendix 4 - Company Highlights Report & Customisation... 24 Appendix 5 Creating Customised Sets (via Importing Tool)... 27 Compustat North America Workshop Questions... 30 Compustat North America Workshop Answers... 32 Support Resources... 36 Copyright S&P Capital IQ 2013 1

Introduction Compustat North America is a database of accounting information about US (as well as Canadian & International ADR) publicly listed companies. It covers the Income Statement, Cash Flow Statement and Balance Sheet as well as many other supplemental items. It has fundamental information going back over 30 years covering annual, quarterly and monthly data items. It also contains historical information on companies that no longer exist because of merger or bankruptcy, known as inactive or research companies. Research Insight is the desktop application by which you can interrogate and analyze this data. This user guide refers to version 8.7. of the software. 1 Before you start Check that Research Insight (the application that is used to access Compustat North America) is installed properly on your computer. Running Research Insight Go to the start menu. Then go to All Programs and find Research Insight in the list: 1 The screenshots used in this manual are retrieved from 8.7.5 on Windows 7 Enterprise Operating System. However, note that all 8.7 versions are similar with respect to interface functionality and data content. Copyright S&P Capital IQ 2013 2

Click the Research Insight Program. The Research Insight application will launch and you should see the welcome box appear in the centre of the application: Retrieving data Research Insight can display data about companies in two modes: 1. It can show financial statements for companies one at a time. 2. It enables you to query specific items (like sales, cost of goods sold etc.) for a group of companies, known in Research Insight as a set. Copyright S&P Capital IQ 2013 3

Method 1: Data on one company Click on the Research Assistant icon: Enter the TICKER or GVKEY (Compustat unique identifier) of the company whose financial statements you want to retrieve for example GOOGLE. If you do not know the GVKEY/ticker of a company you can also click the Look Up button and search by full company name from the Find Text field. Copyright S&P Capital IQ 2013 4

The look-up box appears as below: Also within the Look Up box, on the left hand side under Select Company Category you will see a number of sets (lists of companies) that Compustat has created. Commonly used sets are: Set Name Description $C Compustat Active All companies that are still being updated in the database (active). $R Compustat Research Companies that are not being updated because they have ceased to exist due to merger or other reasons (know as inactive/ research). $SP_100 S&P 100 Index The companies/ constituents that make up the S&P 100 index. $SP_500 S&P 500 Index The companies/ constituents that make up the S&P 500 index. $ADR American Depositary US Listings of international companies. Receipts $T Canadian All Canadian companies that are still being updated in the database (active). Type the company name in the Find Text: field and then click on Find Next to scroll through companies whose name matches what you have entered. When you have found your required company, click Paste (or double-click) on the name and return to the Research Assistant by closing the lookup box. Copyright S&P Capital IQ 2013 5

You will see that the ticker (GOOG) for GOOGLE has been carried across to the Research Assistant: Click Next. Your company s full name should appear in the left plane you should now be in step 2 of the Research Assistant. Click Next again to proceed to Step 3. To see pre-built financial statements for a single company click on Open Report and Next: You can now select the type of financial report that you want. Click on the + beside Balance sheets and double-click (or press finish) on Annual Balance Sheet 11 Years. Copyright S&P Capital IQ 2013 6

The following financial statement should appear (part illustrated below): In the above example you will notice the @CF entries. These are known as data codes you can find information about these codes by going to Help Research Insight Help Topics Index and search for Data Codes. To quickly view the same statement for another company, press F9, enter/locate the new GVKEY and press enter. The data will automatically update for the new company using the same report format. From the results page, you can open another report by clicking on the Open Report icon choice; confirm your GVKEY and press enter. select the report type of your Exporting Data to Microsoft Excel If you click on FILE / SAVE AS on the main menu, and change directory as required, the report you have produced will be saved as a tab delimited text file. This can easily be read into Excel. Open excel click open on the file menu. When the open file box appears change the File of type box at the bottom to Text File. Now select the file you have saved from Research Insight (note, the default folder is under My Documents Research Insight CSRPTS) when the import box appears click Finish and format as required {Delimited Tab}. Copyright S&P Capital IQ 2013 7

You can also use the S&P menu items that have been added to your Excel menu bar if available: If not available, the add-in can be found in the location below: Select research assistant & the remainder of the process is identical to the steps previously described. The data populates your Excel sheet. *TIP: it may be a good idea to unlink the data in the worksheet so that when you attempt to access the data at times you are not connected to the application you do not receive errors. Click on the highlighted icon in Excel: Copyright S&P Capital IQ 2013 8

Method 2: Collecting data on many companies screening Screen the Compustat database universe on any number of quantitative and qualitative factors, enabling custom report generation based off the resulting list of companies. Start the Research Assistant using this icon situated on the top left of the button bar: You should select an initial set to work with. Click on the Change Set button and this opens up the initial set box: As you click on Look Up, you will be redirected to the window below: For companies with active data, highlight $C CS Active and click on Paste; alternatively you could have simply typed $C in the previous window and clicked on OK. If you wanted to include active and inactive companies, you would type $C+$R, Copyright S&P Capital IQ 2013 9

or to exclude ADR s from the active set, $C-$ADR. Once your set is chosen, you can start selecting relevant screening criteria. You can choose your required criteria by selecting items from the various predefined tabs. For example (as illustrated below), you may want to screen for companies with a Market Value > $1.0bn, PE Ratio < 10.0 and Price to Book < 1.0 (set in the Valuation tab): Also choose Primary Trading Issue = True and Non-ADR Company = True from the Population Particulars tab to prevent duplicate issues of companies and non US securities being included. The Customize button enables you to create your own tabs (or change the default display) with both standard items and user-created concepts for easy access in future uses of the application. Each tab can only display 6 items but you can change the list shown through the customize button as well as by (de)selecting different tabs. Right-click on any item, you gain quick access to its definition. If you plan to re-use the screening criteria chosen, click on Save As within the Save screen section. Copyright S&P Capital IQ 2013 10

Should you wish to save these companies in a set to re-use later, click on Save As under the Save Set section in Step 2 of the Research Assistant and name the set as required. In future you will be able to refer to this set using customized notation, e.g. $USLargeCap (see below). Note, if you are unable to save to the local C: drive you may need to navigate to your personal network area: Turn to Exercise 1 (Page 27) Copyright S&P Capital IQ 2013 11

Now that you have saved the Set, click Next in the Research Assistant, and then select the Report Assistant option and click Next again: Copyright S&P Capital IQ 2013 12

Retrieving data for the current time period Click Items vs. Companies under the Current Time Period box to run what is known as a static request (taking latest available data). Click Next to choose the items you wish to display concerning the companies you have screened. Navigate around the existing item groups or use the look up facility to find items you d like to download (again, the customize button is available to create your own group maximum of 9 item groups can be displayed at any time): Copyright S&P Capital IQ 2013 13

To search for items not in any of the pre-selected item groups, use the look up facility on the top right of the screen above. Search by entering the relevant text string into the Find Text box or type the data item name as known in the Compustat database. For example enter DEPRECIATION into the Find Text box; items containing this text string anywhere within the name will appear, click through the matches until you find the desired item: Note: Ensure you have selected All in the select item category box before doing a search. Within this look up box you can also review the definition of a particular item by clicking on the Definition button: Once you ve found and confirmed your required item, add it by clicking on paste or simply double-click it then close. You will see the Depreciation-Amortization item added into your list of selected items. Once you have all the items you wish to see displayed, click Finish. You will see your results in the following screen. The display can be modified as required and Copyright S&P Capital IQ 2013 14

converted to an Excel readable format by following the same process as previously described. The example used in this user guide provides the output below: Note, to sort the data in an order other than by Company Name (e.g. Net Income), click on the output then Close: button in the toolbar and choose how you wish to sort the date Copyright S&P Capital IQ 2013 15

Press F9 or click on the running man companies and initiate the change of sorted order. and confirm your chosen set of If you wish to add or remove any of the columns displayed, use the icon to return to the Report Assistant wizard and choose your required item(s). You will need to re-sort your output if required after adding new items. Turn to Exercise 2 (Page 27) Retrieving historic data in a time-series request To retrieve values over a period of time, or perform a time-series request, choose the option Items vs. Companies within the Historical Analysis option (you can reach this screen directly from your previous results/ reports page by clicking on the icon. Click next and choose the item(s) you wish to view. Note; it is advisable to choose only a small number of items if you are looking to view data over a longer period of time. Use the Remove button to take out existing fields from your selection. You should now select the time period that your report will cover. For requests where you want to see a large number of items, it is advisable to only choose a short time period. If you are looking at just one item, then a longer time period can be used. In Copyright S&P Capital IQ 2013 16

our example, you are looking for Sales-Net figures for the same set of companies over the past 10 years. Note, you can choose a relative time period (-5Y, 0Y etc.) or Absolute (Y04, Y09) representing fiscal years or calendar years. Remember, if using latest year, you may not have the complete data as not all companies will reported at the time Compustat was updated; this shall be illustrated with a @NA value. Choosing a relative time period of 0Y will always bring back the latest data. Copyright S&P Capital IQ 2013 17

Again, you can sort this data by using the Formula option and right-click on any column. You can also modify field headers as required for presentation purposes (although this may be more appropriate to perform in Excel). You can click Save As to save the report as a text file. See previous notes on exporting the file data into excel. Turn to Exercise 3 (Page 27) Copyright S&P Capital IQ 2013 18

Help & Definitions Reference The full list of data items is available in the Compustat North America Data and Reference found within Help Data and Reference Some example data items are as follows: Item Category Code Sales (Net) Income-Stat Ann SALE Company Name Company specific CONM EPS Basic Excl. Extra. Items Income-Stat Ann EPSPX Assets - Total Balance Sheet - Annual AT Liabilities - Total Balance Sheet - Annual LT R&D expense Income-Stat Supp XRD Common Equity - Total Balance Sheet - Annual CEQ Long Term Debt - Total Balance Sheet - Annual DLTT Research Insight contains a help system that contains all of the product s documentation. Some of the topics that may prove useful are: Screening Sets Formulas Reports How to build a list of company (a set) from a set of criteria How to manipulate lists of companies How to create your own formulas Viewing and Creating Reports For a list of data items, you can find the full description of each one by clicking on, then click on Items. Choose the item you wish to explore, and click consequently on Definition. Copyright S&P Capital IQ 2013 19

Appendices: Appendix 1- Another approach to finding data item mnemonics By using Research Insight to access fundamental data for one company, you can then see what codes and data types the application uses to create a report and then use the codes in your own data gathering exercises (see Appendix 4 for customization of reports). (A) Using the research assistant wizard open a pre-defined report for a company, e.g. GOOGLE (remember, use the Ticker GOOG) (B) Select Annual Income Statement 11 Years. When you receive the results, click on the formula button as illustrated: Copyright S&P Capital IQ 2013 20

This shows the formula s rather than the numbers as shown in the screenshot below. You can now see the structure of the Income statement and the codes used for Sales (SALE), Cost of Goods Sold (COGS), Depreciation & Amortization (DP), etc. Also you can see how Research Insight associates different time periods, e.g. COGS[-3]: COGS value 3 years prior or COGS[Y07] would be COGS for FY2007. You can do the same thing for the Balance Sheet and Cash Flow Statement and all other pre-built templates in the Reports folder. Copyright S&P Capital IQ 2013 21

Appendix 2 - View Modify Data A useful tool to check a single item of data for a single company over the whole period of time the database covers. To access, click on Databases View/Modify Data: As you click on View, you will see the data as shown below: Copyright S&P Capital IQ 2013 22

Appendix 3 - Classic View This section is rather for expert users who are more familiar with the Research Insight expression language/mnemonic set and require a quick way of screening for a population. To access, click on File Classic View: Example: Let s say we want to screen on active companies ($C) with a 1 st stage criteria of AT > 1000 ($1bn) and a 2 nd stage criteria of New York City of incorporation. Enter each criteria field into the space provided, click on the enter it into the grid. Once complete click on the running man (or press F9 ). to You will see the number of companies that pass 140 out of the initial North American (Active) set of 2,632 that have Total Assets of over $1bn. Continue to enter further criteria until your research is complete, e.g.: To refresh the results for each line item, use Screen Refresh or CTRL + F9 or simply click on on this page. To see the companies passing on any particular line, you need to navigate to the respective row, (e.g. Row 6 above) and select Screen View Results. By click on the save icon you can save the above criteria to re-use in the future. By naming the final results set as in the example above, Set_NY, you will be able to use these companies as a set in future analysis after saving the screen. Save by right-clicking on Set_NY and click on Save Passed Set under the standard folder CSSETS. The resultant set can be accessed in the Research Assistant and selecting Open Set. Copyright S&P Capital IQ 2013 23

Appendix 4 - Company Highlights Report & Customisation A useful report to access is the Company Highlights report this gives you an overview of a company as of the latest database update. Click on the Open Report icon and click on Company Highlights. Alternatively, click on the point in the application. icon at any When the report loads up, choose the GVKEYs or Tickers as required to populate the data fields, note you can always enter multiple tickers in the Companies field by separating the identifier with a comma: Copyright S&P Capital IQ 2013 24

Research Insight allows you to customize existing reports that you may wish to add extra item(s) into. Click on Formula on the left hand side of the report, and then the icon to add a text. For example, you would like to include the Company Website URL at the top of the report. Click into the display where you want the label to appear, and type the description as required in the text field, clicking the tick to confirm. Next click the icon. This field needs to pick up the Compustat item related to Website address. In this case this is WEBURL (again use the lookup tool to search if you cannot remember the mnemonic): Draw the area where you want the Website label to appear, re-align accordingly, and type the item WEBURL into the field, clicking on the tick to confirm: Copyright S&P Capital IQ 2013 25

Click F9 to re-run your report, confirming the ticker. You will see your new item appear in the report: Copyright S&P Capital IQ 2013 26

Appendix 5 Creating Customised Sets (via Importing Tool) Research Insight enables the importing of a custom set of companies from an Excel spreadsheet. There are three steps involved: creating your spreadsheet file in the correct layout, saving your spreadsheet file in the correct file format and importing the set from your spreadsheet file. Creating the Spreadsheet File: In cell A1 of your spreadsheet, enter a header retrieval key; valid keys are TIC, CUSIP or GVKEY. In cell A2 and all subsequent fields below, fill in your list of retrieval keys. For example see below: If you have identifiers of another type, e.g. ISIN, SEDOL please liaise with the client support team at ClientSupport@StandardandPoors.com who will be able to map these codes to the GVKEY or other available identifier to assist you with creating your customized sets. In order for Research Insight to read your import file, it must be saved as a.csv file rather than an.xls or.xlsx. Once saved, make sure you close the.csv file. From Research Insight, select File Import and navigate to the folder where you saved the.csv file. Once you have located it remember to click on the Set option within the dialog box before attempting the import: Copyright S&P Capital IQ 2013 27

Research Insight will ask you to confirm if the file is in.csv format presenting subsequently the following dialog boxes: Select the type of set that you want to import; note if your spreadsheet contains a company ticker, you can still import the company as a business segment set, a geographic segment set, or an issue set. The retrieval keys in the spreadsheet do not have to match the set type you choose. Click OK. The request will process and Research Insight will tell you when the operation is complete. If it has been successful you will see the output presented in the application as below: Copyright S&P Capital IQ 2013 28

To save the resulting data as your new set, from the File menu, select Save. From here you can choose the name you wish to call the set and provide a description, if you like under File Options. To use this set in the application at a future date from the Research Assistant, click on the change set option below: Then click on look Up and change the set category to Saved. You will see your saved set in the list: Alternatively, simply type in $NY_Tickers to recall the set. Copyright S&P Capital IQ 2013 29

Compustat North America Workshop Questions For all of the questions below, use a set that includes only active companies in the North American database, while excluding $ADR and $T {Canadian} companies [$C - $ADR - $T]. 1. Use the Research Assistant to determine how many companies: Hint use the research assistant screening tool, you may need to customize the groups/items in order to see the relevant data type that will calculate this. Look for the Sales 1 Yr CAGR and Assets 1 Yr CAGR items within the Growth category. A. Increased their SALES by over 100% in their last Financial Year compared to the previous year? B. Increased their TOTAL ASSETS by over 100% in their last Financial Year compared to the previous year? C. Increased both sales & total assets by over 100% in their last Financial Year compared to the previous year? 2. For the resulting companies from Question 1C, using the report assistant, download the GVKEY & Total Current Assets items (Total Assets can be found in the Bal Sheet - Ann group) for the current time period (Items vs. Companies). From the results screen, which company has the highest Total Current Assets and what is the value? Take note of the GVKEY for this company. 3. Again, for the same set of companies, retrieve the item Total Assets for the absolute period Y12 to Y02 using the Report Assistant. Sort the resulting data so that the Company with highest Total Assets for Y10 is top, who is that company? Copyright S&P Capital IQ 2013 30

4. A. Create a new screen to search for companies that have doubled sales and assets over the last year and who have a Market Value of over $500m. How many companies pass this screen? B. Using the Report Assistant, determine which company from this set of companies has enjoyed the best and worst share price performance over the last month and what are the values? Hint search for the item 1 Month Price Change in the Market & Returns group. You may also wish to retrieve the Ticker symbol in the same report for Question C. BEST: WORST: C. For the company with the best performance, open the Company Highlights report and identify the company s latest Price to Book figure, Market Value & the Core EPS - Basic. P/B: Market Value: Return on Assets ROA): 5. Again for the same company, customize the Company Highlights report to display their Compustat GVKEY and the Company WEBURL. (Use the Formula view to customize) Copyright S&P Capital IQ 2013 31

Compustat North America Workshop Answers Compustat Database North America @ 1A: 240 companies 1B: 333 companies Copyright S&P Capital IQ 2013 32

1C: 77 companies 2: Express Scripts Holding Co.: GVKEY: 025356 ACT: $10,756.900 3: Energy Transfer Equity LP: GVKEY: 165649 AT[Y10]: $17,378.730 4A: Copyright S&P Capital IQ 2013 33

4B: 4C: Copyright S&P Capital IQ 2013 34

5: Answers are correct as per the Compustat NA database 18 TH of April 2013. Copyright S&P Capital IQ 2013 35

Support Resources Production Calendars Software Downloads Getting Started Manuals Data Guides Item Lists Newsletters Support.StandardandPoors.com Your Login Details are: Login: Password: Telephone (Europe): +44 (0)20 7176 8580 Opening Hours: 09:00-17:00 Telephone (USA): +1 303 721 4802 Opening Hours: 13:00-01:00 GMT Email: clientsupport@standardandpoors.com Copyright S&P Capital IQ 2013 36