Introduction to COMPUSTATâ

Research Insight

Sophisticated product · Steep learning curve

 

 

HIGHLIGHTS

 

·         Financial statistics on more than 7500 publicly held companies

·         Dividend and earnings information, stock returns, and more

·         Active and inactive (due to bankruptcy, merger, etc.) companies

 

HOW TO CONNECT

 

In order for Research Insight to install and run under each student’s logon ID the following steps must be followed.  These steps only need to be run once for a student on a particular workstation.  If a student uses another computer then they will have to rerun these installation steps.

 

1.       Student should log onto the computer with their logon ID and password.

 

2.       Students must perform this step the first time they try to use Research Insight on a computer.  

 

3.       Click on Start, àAll Programs, àResearch Insight, àS&P_Reg.reg.

 

4.        The two panels below will be displayed.

 

good

 

5.       Click on Yes

 

ok-2

 

6.       Click on OK

 

7.       Research Insight is now ready to use. 

 

 

8.       Next have the student add the Excel Add-In for Research Insight.

 

9.       Click on Start, All Programs, Research Insight, Excel_Reg.

10.   The two panels shown below will be displayed.

 

 

 

excel-yes

 

11.   Click on Yes

 

 

excel-ok

 

 

12.   Click on OK.

 

13.   Open Excel  , Click the Microsoft Office Button Button image, and then click Excel Options.

 

 

 

 

14.   Click the Add-Ins category.

15.   In the Manage box, click Excel Add-ins, and then click Go.

16.   To load an Excel add-in, do the following:

17.   Click Browse

 

 

 

18.   Go to   C:\Program Files\Research Insight\Excel

19.   Double click on  SPRI80.XLA

 

 

20.   In add ins box check the SPRI80 box, then click ok

21.   Research Insight is now ready to use.   You should see new icons added to your Excel

 

 

 

 

Welcome Screen

 

The Welcome to Research Insight window allows you to access the many functions of Research Insight. The Research Assistant wizard allows you to search (screen) the COMPUSTAT databases for companies that meet specific criteria. The Report and chart Assistant wizards allow you to create custom reports and charts. Company Highlights runs a company highlights report for specific companies. You can also open predefined screens, reports, charts and sets. Library allows you to retrieve information from textual databases. Prices, News and Headlines takes you to Real Time where you can have immediate access to prices, news and headlines. Click Research Assistant and we’ll begin screening on a set of companies.

 

 

 

 

 

Research Assistant 1

 

You can use the Research Assistant to easily identify companies that meet specific financial or investment criteria. All of the financial and market items are grouped together into easily recognizable categories, and for each item you can set the parameters precisely to your needs.

 

 

This window lets you search the COMPUSTAT (North America) and (Global) databases for companies that meet specific screening criteria. You can create your own screen by searching for related companies, setting criteria for financial indicators, and changing the Initial Set of companies that will be evaluated in the screen. Or you can run a pre-defined screen built into Research Insight (e.g. low price-to-book or quality blue chip stocks). When you have finished selecting your screening criteria, click Next to advance to the next window where you can view the results of your screen.

 

Saving a screen allows you to run the screen in the future using the same criteria to formulate an up-to-date set.

You can save your screening criteria in Research Assistant - Step 1. Click the Save button to save a new screen or a modified screen, overwriting the original. Click the Save As button to save a modified screen with a different name, leaving the original intact.

Before saving, you may first want to see which companies met your screening criteria. Proceed to Research Assistant - Step 2 by clicking Next to view the results of the screen. Click the Save button to save a new screen or a modified screen, overwriting the original. Click the Save As button to save a modified screen with a different name, leaving the original intact.

 

SIC is a four-digit code that classifies companies by activity. We assign a Primary SIC Code to an individual company by analyzing its product line breakdown from the 10-K, annual report, or stock reports. The product line accounting for the largest percentage of sales determines the Primary SIC Code.  We review the Primary SIC code each year when the company is updated.

The Research Assistant - Step 1 window provides several ways to screen on SIC codes:

 

1.            To find companies with the same Primary SIC code, enter a ticker symbol in the Companies box, choose the SIC radio button under Find Similar Companies, and click Next. You will see the list of related companies.

 

2.                   Or, you can include the SIC code item (in the Company Specifics tab) in your screening criteria. You can use this item to screen on one SIC, or a range of SICs.

For example, if you want to screen for all companies that manufacture aircraft and aircraft parts, begin in the Research Assistant - Step 1 window.

 

1.    Select the SIC code item in the Company Specifics tab.

 

2.    Select Range from the Default Sign drop-down list.

 

3.    Click the Edit Values button. In the Edit Range Values dialog box, enter 3720 in the Start of Range box, and 3728 in the End of Range box. Click OK.

 

4.    Click Next in the Research Assistant - Step 1 window.

 

You will see a list of all companies which have primary SIC codes that fall within the range between 3720 and 3728 (i.e., 3720, 3721, 3722, 3724, and 3728

 

 

Research Assistant 2

 

The Company List displays the companies that passed the criteria. We’ll modify this set of companies by adding Applied Materials Inc. To do this, we entered the ticker symbol (amat) in the Add Company to Set field. Clicking the Add Company button adds the company to the existing set. Now we’ll Save_As the set of companies for future use. Click the Save As button under Save Set.

 

 

Save As

 

We entered a set name in the File Name field, now click Save to return to the Research Assistant - Step 2 window.

 

Research Assistant 3

In the Research Assistant - Step 3 window, select a radio button next to one of the following options:

 

1.            Report Assistant allows you to create a custom report based on the companies that passed you screening criteria.

2.            Chart Assistant allows you to create a custom chart based on the companies that passed your screening criteria.

3.            Open Report allows you to open a pre-defined report based on the companies that passed your screening criteria.

4.            Open Chart allows you to open a pre-defined chart based on the companies that passed your screening criteria.

 

5.            Company Highlights allows you to run the Company Highlights report for the companies that passed your screening criteria.

6.            Finish returns you to the Research Insight desktop.

 

After you have selected one of the radio buttons, click Next to advance to the next window.

 

Now we’ll run a quarterly income statement for each of the companies below. Click Next.

 

 

The Research Assistant - Step 3 window gives you the option of opening a predefined report or chart, creating a custom report or chart or running a company highlights report. For this demo we selected Open Report which allows us to open a predefined report. Click Next to display a list of all predefined reports.

 

 

Report Assistant - Step 1

 

In the Report Assistant - Step 1 window you can use the Assistant to help you define your report parameters or you can start with a blank report and design your own report.

Follow the Report Assistant step-by-step to build a custom report

 

a)  First define the time period

 

Research Insight gives you the option of creating a report for the Current TimePeriod (the most recently available data for the day, month, quarter, or year) or running a Historical Analysis report comparing data items and companies over a specified period of time.

 

b)  Then choose a report format

 

Select one of the radio buttons under Current Time Period or Historical Analysis to determine how items, companies, and time periods will display in your report. You will see a preview of the report format you choose in the Example window.

If you choose a Companies vs. Items report format under Current Time Period, the Company Count box is enabled. You must then select the number of companies that will appear across the top of your report.

 

c)  Click Next to advance to the Report Assistant – Step 2 window where you will choose the items that will appear in your report.

 

Report/Chart Assistant - Step 2

 

The Report/Chart Assistant - Step 2 window is used to select items that you want to appear in your report or chart. For your convenience, data items are organized according to Item Groups (e.g. Valuation, Growth, etc.).

Selecting items for your report

 

1.            Click one of the radio buttons next to an Item Category. You will see that the Items list below changes to show all of the items that are available under that category.

2.            Highlight an item in the list and click the Add button to select it for your report. The item appears in the Selected Items box on the right. If you decide not to include a selected item in your report or chart, highlight the item and click the Remove button.

3.            You can arrange Selected Items in the list in the order you would like them to appear in your report or chart. To do this, select a listed item and change its position in the list with the Move Up

 or Move Down button.

 

4.            Additional items and functions can be added to your report or chart by entering the mnemonic in the New Item text box. Then click the down arrow button to add that item to the Selected Items list. If you don’t know the mnemonic, click the Look Up button to search for items and functions.

5.            You can also customize the Item Categories to include the items that you use most often.

 

After you have chosen the items for your report or chart, if you chose a Historical Analysis report, click Next to advance to the next step in the Report or Chart Assistant. If you chose a Current Period report, click Finish to run your report or chart.

 

Report/Chart Assistant - Step 3

 

The Report/Chart Assistant - Step 3 window appears only when you have chosen a Historical Analysis report or chart. It allows you to select a time period format as well as the beginning and ending time periods. It also lets you align items with different periodicities so that they appear on the same period basis.

 

1.            Select one of the three Time Period Formats

 

Relative for the year, quarter, month, week, or day relative to the current period.

Absolute for the exact year, quarter, month, week, or day.

Calendar for a calendar year, quarter, month, week, or day.

 

2.            Enter the Beginning Period and the Ending Period for your report or chart. Following are some examples of beginning and ending periods for each time period format:

 

                 BeginningPeriod            EndingPeriod  

Relative               -1Y                                      0Y            

Absolute              Y96                                    Y97           

Calendar              C96                                        C97       

3.            Choose one Alignment for all data items in the report or chart.

 

For example, if you selected a data item with an annual periodicity (like Sales) and an item with a monthly periodicity (like Market Value-monthly), then the annual and the monthly alignment options will both be enabled. If you choose monthly, then Research Insight calculates the annual item on a monthly basis, and returns a monthly Sales figure as well as the monthly Market Value.

 

 

Chart Assistant - Step 1

 

In the Chart Assistant - Step 1 window you can begin creating a custom chart by choosing a chart style, deciding whether your chart will include one or more companies, and choosing the time period for the chart.

 

To begin building a chart, follow these steps:

 

1)           Select a Chart Style by clicking the radio button next to the style name. (The table below explains the different charting options available to you.)

2)           Choose whether to display one or multiple Companies per Chart.

3)           Choose a current or historical analysis Period.

4)           Click Next to proceed to the next step in the Chart Assistant.

 

Chart Style         Companies per Chart     Time Periods                Number of Data Items in Chart

Area                                                      One or multiple                Historical            Multiple

Bar                                                         One or multiple                Current or Historical     Multiple

High/Low/Close                             One                                        Historical            Prices only

High/Low/Close/Volume           One                                        Historical            Prices and shares only

Line                                                       One or multiple                Historical            Multiple

Pie                                                         One or multiple                Current                One

 

 

Opening pre-defined charts, reports, screens, or sets

 

You can open a Research Insight pre-defined chart, report, screen or set from the File Open dialog box:

 

1.            From the File menu, choose Open or use the short-cut keys, Crtl O.  The File Open dialog box opens and contains the Compustat Charts, Compustat Reports, Compustat Screens and Compustat Sets folders.

 

OR

 

Click the Open Screen, Open Chart, Open Report, or Open Set icon on the toolbar.  

 

2.            Double click a folder to see the contents inside.

 

3.            When the Open Screen folder is selected, the Screen Open mode field becomes active.  Click either the Research Assistant or Compustat Classic View radio button. Your selected screen will open in the corresponding format.

3.            Select a chart, report, screen, or set with your mouse pointer.

4.            Click Finish.

File Open

 

Research Insight offers numerous predefined reports, which can be accessed through the Open Report icon. We selected Quarterly Income Statement by clicking on the Income Statements folder and then the specific report. Click Finish to display the report.

 

 

 

 

Report 1

 

The report displays for the first company in the Companies list. Click the Next button to view the report for the next company in the set.  You could also select the company ticker or name from the Companies area.

 

Report 2

 

Now we’ll run a chart for the same set of companies displaying share price and earnings per share. Click the  (Open chart) button on the left side of the window.

Chart Open

 

Research Insight offers a variety of predefined charts,  which can be accessed through the Open chart icon. We selected Price and EPS by clicking on the Pricing folder and then the specific chart. Click Finish.

Chart 1

 

Since we want to run the chart for the set of companies we saved earlier, we need to change the initial set. Click the Change Set button.

 

 

Chart

 

The chart displays for the first company in the Companies list. To view the chart for another company, all we would have to do is click the Next button, or select the company ticker or name from the Companies area.

 

Research Insight has many different pre-defined sets for different types of data.  In Research Insight, the set name is preceded by a dollar sign ( $ ).  The COMPUSTAT (North America) and COMPUSTAT (Global) databases contain unique sets, specific to each database. 

To open a pre-defined set

 

1.            In Research Assistant - Step 1, click the Change Set button.

 

2.            Select a pre-defined set from the drop-down list. Click OK.

 

3.            Click the Next button to view the pre-defined set in Research Assistant - Step 2.

 

The available $ sets are listed below, by database:

 

COMPUSTAT (North America) Database

 

$ Set      Description        What it contains...

$C           CS Active             Active U.S. company data

$R          CS Research       Inactive U.S. company data

$T          Canadian             Active Canadian company data displayed in Canadian currency

$I            CS Indexes - Active and Research Market data for active and inactive indexes

$CS        CS Business Segment     Business Segment data for active U.S. companies

$CG        CS Geographic Segment               Geographic Segment data for active U.S. companies

$CI         CS Active Issue Issue data for active U.S. companies

$II          CS Index Issue   Index data for stock issues

$RI         CS Research Issue           Issue data for inactive U.S. companies

$TI         Canadian Issue Issue data for active Canadian companies

$SP_100              S&P 100 Index  All companies in the S&P 100 Index

$SP_500              S&P 500 Index  All companies in the S&P 500 Index

$SP_Ind               S&P Industrials Index   All companies in the S&P Industrials Index

$SP_Mid              S&P MidCap 400 Index All companies in the S&P MidCap 400 Index

$SP_Small          S&P SmallCap 600 Index             All companies in the S&P SmallCap 600 Index

 

Defining Screening Criteria

To run a screen against the COMPUSTAT (North America) or (Global) database, begin by defining your screening criteria in the Research Assistant - Step 1 window.

 

1.            If your criteria relate to a particular company, enter the ticker symbol in the Companies box (separate multiple tickers with commas).

2.            To find related companies, choose one of the radio buttons under Find Similar Companies (or you can accept the default, Don’t Find Similar Companies).

3.            Choose financial criteria from the tabs on the right. Each tab contains a set of related financial indicators. You can select as many indicators as you like for your screen by clicking the box next to the item name. (To de-select an indicator, click the box a second time to remove the check mark.)

 

4.            Choose a mathematical symbol (e.g., +, -, <, or >) from the drop-down list.

5.            Enter a number or range related to the indicator in the far right field.

                You can choose the subset of the database that your screen will run against, by clicking the Change Set button, and selecting a set name from the drop-down list.  By default, if you don’t choose a subset, your screen will run against the set of all Active companies in the database.

                Click Next and Research Insight screens the database for companies that meet your criteria, and automatically proceeds to the next window where you can view the results of your screen.

 

Screening by SIC Code

SIC is a four-digit code that classifies companies by activity. We assign a Primary SIC Code to an individual company by analyzing its product line breakdown from the 10-K, annual report, or stock reports. The product line accounting for the largest percentage of sales determines the Primary SIC Code.  We review the Primary SIC code each year when the company is updated.

 

The Research Assistant - Step 1 window provides several ways to screen on SIC codes:

 

1.            To find companies with the same Primary SIC code, enter a ticker symbol in the Companies box, choose the SIC radio button under Find Similar Companies, and click Next. You will see the list of related companies.

 

2.                   Or, you can include the SIC code item (in the Company Specifics tab) in your screening criteria. You can use this item to screen on one SIC, or a range of SICs.

 

Screening on a range of SICs

For example, if you want to screen for all companies that manufacture aircraft and aircraft parts, begin in the Research Assistant - Step 1 window.

 

1.    Select the SIC code item in the Company Specifics tab.

 

2.    Select Range from the Default Sign drop-down list.

 

3.    Click the Edit Values button. In the Edit Range Values dialog box, enter 3720 in the Start of Range box, and 3728 in the End of Range box. Click OK.

 

4.    Click Next in the Research Assistant - Step 1 window.

 

You will see a list of all companies which have primary SIC codes that fall within the range between 3720 and 3728 (i.e., 3720, 3721, 3722, 3724, and 3728).

 

Open a Research Insight set in a spreadsheet

In this example, we will create a set of companies that are in the same SIC classification as American International Group and have a monthly market value over $4 billion. The Excel spreadsheet will list the company names, net annual sales, and ticker symbols.

Begin with Excel open:

 

1.    From the S&P menu, select Research Insight Wizards.

The Welcome to Research Insight window opens on top of Excel.

 

2.    Select the Research Assistant icon.

You will see the Research Assistant - Step 1 window.

 

3.    Enter the ticker symbol for American International Group (aig) in the Companies field.

Hint: To search for a company ticker symbol, select Look Up List from the S&P menu.

 

4.    In the Find Similar Companies area, click the SIC radio button.

 

5.    Under the Valuation tab, click the Market Value-Mnthly check box, enter 4000 in the far right field, and click Next.

The set of companies that passed the screening criteria will display on the Research Assistant - Step 2 window.

 

6.    Click Next through two windows.

You will see the Report Assistant - Step 1 window.

 

7.    Click the Items vs. Companies radio button under current Time Period.

 

8.    Click Next.

You will see the Report Assistant - Step 2 window.

 

9.    Click the Income - Ann radio button and select the Sales item.

 

10.  Click Add.

 

11.  Enter tic (the mnemonic for ticker symbol) in the New item field and click the arrow button.

 

12.  Click Finish.

 

You will see the Research Insight set in the Excel spreadsheet.

 

Hint: To change modify your criteria or to run the spreadsheet for a different set, select Run Assistant from the S&P menu.

 

Active-X Technology

With Active-X Technology, Excel initiates the conversation and requests data from the Research Insight databases. As with any Active-X Technology link, there is a source and a dependent file. In this situation, Research Insight is the source and Excel is the dependent file.

 

Add-in functions for both Microsoft Excel versions 7.0 and 8.0 for Windows allow you to retrieve data from Research Insight for use in your spreadsheet.  The add-in functions are similar to existing spreadsheet functions

=SPWS_TIME_SERIES("Key","Expression","Beg_Period","End_Period","Across_or_Down")

This is an array function.  To use this function you must first highlight the cell range for your array.  After you have typed the function formula for the array, press CTRL + Shift + Enter.

 

Example:

 

=SPWS_TIME_SERIES("IBM","SALE","-4Y","0Y","DOWN")

Returns Sales - Net for the most recent five years; data is displayed down the column beginning with the 5th year of data.

 

When entering add-in functions into a spreadsheet, you must include the function arguments (shown above, in italics). The function arguments are explained below.

 

Key

 

The ticker symbol or GVKEY for your company.

 

Expression

 

The formula, such as an item, concept, or function, for which you want to insert data.

 

Beg_Period and End_Period

 

The beginning and ending time period references.  All time period references must have the periodicity included, such as "0Y" and "-4Y" in the following expression:

 

=SPWS_TIME_SERIES("IBM","SALE","0Y","-4Y")

An entry of "0" or "-4" is invalid.

The most recent time period does not have to be the beginning period.  If Beg_Period and End_Period are reversed, the values will be returned in reverse order.

 

Across_or_Down

 

The array direction is optional; the default is "across".  Valid arguments are "down" or "across".

 

=SPWS_SET("Set","Expression","Across_or_Down") - Insert data for a set in Excel

Use this add-in function to retrieve data for a set of companies from Research Insight for use in your Excel spreadsheet.

This is an array function.  To use this function you must first highlight the cell range for your array. Then, type in the function formula for the array, and press CTRL + Shift + Enter.

If you are unsure how many cells must be highlighted, use the =SPWS_SET_SIZE function to display the set size.  For each =SPWS_SET function, you are limited to approximately 1500 companies.  If your set exceeds the limit an error message is returned.  Use Research Insight @FRAC function in your formula to divide your set into smaller groups.

 

Example:

 

=SPWS_SET("$MYSET","SALE","DOWN")

Returns Sales - Net for the set, MYSET.  Data is displayed down the column.

 

When entering add-in functions into a spreadsheet, you must include the function arguments (shown above, in italics). The function arguments are explained below.

 

Set

 

Can be any of the following:

 

·       set name with its path (such as "$""C:\SPWS\$SP500_SET""")

·       set name without its path when in default directory (such as "$SP500")

·       Research Insight predefined name (such as "$C", "$R")

·       set formula that evaluates to a set (such as "@SET($C,SIC=2834")

·       tickers or GVKEYs enclosed in braces (such as "{""WMT"",""KM""}")

 

Expression

 

Is the formula, such as an item, concept, or function, for which you want to insert data.

 

Across_or_Down

 

The array direction is optional; the default is "down".  Valid arguments are "down" or "across".

 

=SPWS_SET_SIZE("Set") - Return set size in Excel

Use this add-in function in your Excel spreadsheet to determine the size of your set.

When you use the =SPWS_SET function, you must first highlight the cell range in which you want the data to appear.  The =SPWS_SET_SIZE function is useful in determining how many cells must be highlighted before entering the SPWS_SET function.

 

Example:

 

=SPWS_SET_SIZE("$MYSET")

Returns an integer for the number of companies in the set, MYSET.

 

The Set argument can be any of the following:

 

·       set name with its path (such as "$""C:\SPWS\$SP500_SET""")

·       set name without its path when in default directory (such as "$SP500")

·       Research Insight predefined name (such as "$C", "$R")

·       set formula that evaluates to a set (such as "@SET($C,SIC=2834")

·       tickers or GVKEYs enclosed in braces (such as "{""WMT"",""KM""}")