Domo Arigato Mr. Roboto – Utilizing AI Chatbots for an preliminary Inventory High quality scoring

As I discussed in my 2025 Q2 Efficiency evaluate, my central investing device is now a dynamic watchlist that prioritizes Corporations based mostly on High quality, Valuation and Momentum.

I’ve already mentioned my preliminary method to momentum the final time.

Now methods to method the standard of an organization in an environment friendly means ?

The principle situation right here is that I won’t be able to do a “full stack” evaluation for each firm I come throughout. However I wish to have not less than a fast “start line” which I may use to determine if it is sensible to dig deeper or not.

I outlined 10 standards that give me a primary perception on how an organization may match to my “Beuteschama” or not. If I’d wish to examine these standards manually, I would want to make use of a number of sources, comparable to TIKR, some inventory web sites, the businesses’’s IR web site and the annual and quarterly stories. A course of that on common takes me not less than 60-90 minutes to get to a conclusion.

So I made a decision to check out LLMs so as to “outsource” this primary step screening and scoring.

I name this the “10 Issue Mannequin”. One comment: Once I say fascinating to me, which means in precept I’m in search of boring, household/administration managed firms which might be enjoying in comparatively engaging markets,  rising over the long run and are conservatively financed.

That is engaging for me as it fits my funding model and danger desire. Different buyers might need very completely different standards. I’ve not backtested these standards in any means, I simply assume that firms that rating effectively will do effectively over the mid- to long run.

At this early stage within the funding course of, the mannequin additionally contains momentum, each, inventory worth and basic momentum to get a primary glimpse how the corporate is doing on this regard.

When an organization is fascinating sufficient, I’ll attempt to substantiate the elements by means of extra evaluation in a second step earlier than I then add it to my “High 100 watchlist” (or not).

The ten elements (in no explicit order)

1. Shareholder construction

I do like firms which have not less than one vital (or a bunch of shareholders, ideally a household) that ideally enable the corporate to make use of and execute a long run technique. Ideally, Administration itself is a part of that Group. As a threshold, I take advantage of 25% of voting rights.

2. Working margin

Right here I take advantage of simplistically a threshold of 10% EBIT margin within the final FY. I’m totally conscious that sure enterprise fashions have larger or decrease common working margins (COSTCO). However as I discussed earlier than: That is only a first step.

3. Return on Fairness

12,5% is the hurdle which I take into account to be a good ROE. After all, that is additionally a operate of leverage, however at this stage I wish to maintain issues easy.

4. Long run progress

Right here, I outlined a threshold of 6% CAGR for the EPS over the current 10 years or, if not accessible, 5 years. Why 6% ? As a result of that is barely larger than nominal GDP over the long run. 

5. Internet Debt

A internet Debt to EBITDA ration of under 1 offers us 1, every little thing else is 0.

6. Cyclicality

This issue requires extra judgement. I both use the final sector or assume if the corporate has a really low beta that it’s not very cyclical. Non-cyclical is nice and a rating of 1.

7. EPS Momentum

This one checks if within the final accessible monetary reporting interval, EPS has gone up. If sure, then 1, in any other case 0. It is a very crude proxy for basic momentum

8. Capital allocation high quality

That is as soon as once more a standards, the place the mannequin wants to guage info. Within the immediate I give 7 examples of which not less than 5 ought to be fulfilled to get to a rating of 1. I additionally give the LLM some KO standards.

9. Market place & Market attractiveness

Right here, I boiled it right down to market progress, diversification throughout international locations and high 3 place in a market. I had extra advanced definitions however they didn’t work effectively.

10. 6 and 12 month worth momentum

A fast examine to have a look at inventory worth momentum. I take advantage of easy 6 and 12 month worth efficiency. If each are constructive, the rating is one.

Ultimate rating:

On the finish of the train, the LLM ought to then add the person scores with a max of 10. I additionally ask for some KPIs (Market cap, P/E and so on.) , info on administration, the most recent information, a inventory chart and a strengths and weaknesses abstract. 

The present model of the immediate is embedded right here:

https://drive.google.com/file/d/1ZMIf7Nh__6frI8nsyWtcTZOaZfaxO_RF/view?usp=sharing

I’d be more than pleased to obtain recommendations for enhancements and change “immediate secrets and techniques” 😉

Common impression & Comparability of various AI fashions. 

Some remarks upfront: My purpose is right here to get a fast overview with out requiring an excessive amount of effort and time (no uploads and so on.). For this train I used ChatGPT 5 Professional, Gemini 2.5 professional, Claude Professional and Mistral & Perplexity with the free variations.

Listed here are some observations:

1. outcomes for a similar immediate can change considerably from in the future to a different and even one chat to a different
2. Inside a chat, outcomes are likely to worsen once you immediate just a few instances. It’s higher to create a brand new chat each time.
3. Additionally the output codecs can change from immediate to immediate for no explicit cause.
4. For extra obscure firms, the variation within the outcomes is far larger. One of many examples that I’ve within the appendix is eurokai which obtained scores between 5 and 9 out of 10.
5. Typically, the fashions are usually not in a position to accurately add up the scores per class. So that you get 6 instances a rating of 1 and the full rating is 5.
6. Regardless of profitable the Math-Olympics, calculating a ten yr CAGR from two EPS values appears to be actually tough for all of the fashions.
7. The fashions use very completely different sources for market information with a really large number of high quality
8. The “deep analysis” modes don’t all the time produce higher outcomes. Typically it will get worse. For my goal, the deep analysis modes take too lengthy in any case.
9. Solely Mistral was in a position to embed inventory worth charts
10. Usually, the outcomes are getting higher should you ask the mannequin to only do it once more. Which is kind of annoying
11. You may also get completely different outcomes should you immediate the identical factor in two completely different languages (translation supplied by ChatGPT as an illustration)
12. It makes most sense to start out with firms you already know effectively so as to decide the place every LLM has strengths and weaknesses.
13. For those who make the factors too difficult, the outcomes typically worsen
14. I attempted to ask the LLMs to outline standards themselves, however they typically didn’t work all that effectively

On the finish of the day, counting on one mannequin, particularly for smaller firms is kind of hazardous, you’ll want to take a look at not less than at two of them. It’s all the time value to aks 

General, I’ve to say that my favourite LLM remains to be ChatGPT, though briefly, ChatGPT5 was actually unhealthy and sloppy. That is adopted by Gemini and Perplexity, which could be very quick.

Claude is enjoyable to make use of however not very correct. LeChat from Mistral remains to be Okay for a free device. I’d by no means use Grok for apparent causes.

Abstract:

General, I’m fairly impressed how these LLMs work and enhance. I had been concerned in taking a look at Chatbot startups 6-7 years in the past and the development by means of LLMs is solely breathtaking. Even within the weeks that I’ve been iterating on this duties, the fashions constantly improved, which I discover exceptional.

My “reside information Question & interpretation” job is clearly not the perfect use case, but it surely saves effort and time on my facet in comparison with guide work.

As I simply use this as a place to begin for additional analysis, I can reside with the randomness within the outcomes.

To be continued….. 

Bonus music: Styx – Mr. Roboto

Appendix: Examples

Instance 1: EVS Broadcast

ChatGPT 5 with the “suppose tougher” immediate to keep away from the sloppy fast and soiled outcome. It took the longes with round 5 minutes.

It got here up with an 8 out of 10 rating. It really received the ten yr EPS progress improper however determined to make use of the a lot better 5 yr price which is one thing I’d do as effectively.

I just like the detailed evaluation of the Capital allocation chapter. The market section was so so…

Perplexity got here to eight out of 10. Funnily sufficient, my weblog was referenced as a supply in an earlier question, however Perplexity appears to make use of completely different sources at completely different durations of time for a similar immediate. It received nonetheless the EPS progress improper. EPS per share has elevated by ~6% per yr over 10 years and way more over the previous 5 years.

Perplexity was actually quick.

Google Gemini commonplace:

Gemini 2.5. got here up with 8/10 factors. Available in the market attractiveness part it made one mistake: it thought-about the EMEA area as one nation and due to this fact didn’t give some extent which is clearly improper. Aside from that the outcomes had been Okay.

Claude additionally received 10 yr EPS progress improper, however nonetheless gave it a 1. In any other case the outcomes had been fairly respectable , too. I favored the output format lots.

Mistral received to a 6/10. It made just a few errors, comparable to the ten yr EPS progress price, capital allocation coverage and the share worth efficiency. Apparently, it’s the solely Chatbot that is ready to embed share worth charts.

Instance 2: Eurokai

Eurkai is clearly a bit of bit tougher than EVS, as there may be much less frequent info, much less analyst protection and so on. It is usually a extra difficult firm (firm construction, Pref shares et.). Eurokai’s 10 yr EPS progress is round 6,8%.

ChatGPT scored 6/10.

It received EPS progress improper. With the cyclical sensitivity, it gave a 0 regardless of acknowledging the very low beta. Capital allocation coverage may certainly be thought-about a 0. Market attractiveness is one thing I’d not assist as on a glance by means of foundation, greater than 50% of exercise is in a single nation.

Perplexity got here up with 9/10 factors. It received EPS progress improper and was a bit of optimistic on the capital allocation standards. It additionally dodn’t know that Tom Eckelmann is now CEO.However general the outcomes are very respectable.

Gemini 2.5. flash commonplace this time returned 6/10 factors, and had clearly some issued retrieving more moderen info. I simply opened a brand new chat after trying into EVS Broadcast and the efficiency appears to have immediately degraded and contained lots of errors

Gemini within the Deep Analysis mode received 7/10. Apparently it tried to calculate the ten yr EPS progress from historic EPS numbers, however ended up calculating solely a 9 yr CAGR. Alternatively it accurately discovered, that from a market attractiveness, Eurokai is relying an excessive amount of on Germany (40%).

Claude commonplace got here out with 5/10. It made numerous errors, particularly with ROE and EBIT margin.

Alternatively, Claude dug out some good things on compensation and the bios of the Eckelmanns.

Claude in  Analysis mode additionally got here out with 5/10, however did an error in including up the elements. It ought to have been a 6/10.That is one thing one sees in different fashions as effectively.

It got here up with some unusual stuff, like a non-existing share dilution.

Le Chat from Mistral scored 7/10. It additionally received the ten yr EPS progress improper, but in addition the dominating shareholder proportion. Apparently it was the one mannequin that embeds inventory charts.

10-Faktoren-Analyse: Eurokai KGaA