How the StocksXray X-Ray Score works

The X-Ray Score is StocksXray's one-number summary of a company, on a scale from 0 to 100. It combines five lenses, valuation, growth, profitability, financial health and dividends, and every input is judged against the company's own sector. It is meant as a starting point for research. It is not a prediction or a recommendation, and this article explains what is inside it and what it cannot tell you.

The five lenses and their weights

Each lens asks a different question about the business, and each carries a fixed share of the total:

The weights add up to 100%. Valuation and profitability carry the largest weights. The next article, the five lenses explained, looks at each one.

Percentile ranks within the sector

Every metric is converted into a percentile rank within the company's own sector. A percentile rank of 80 means the company scores better than about 80% of its sector peers on that metric. This has two consequences.

First, the score is relative. A utility is compared with other utilities, not with software companies, so differences in typical debt levels, margins and growth between industries do not distort the result. Second, the number reflects position within a group, not an absolute standard: a company can have solid fundamentals and still rank modestly if its sector is strong, and the reverse is also true. See GICS sectors explained for how the sectors are defined.

How the pieces combine

Roughly, the lens results are weighted and added:

Score = 0.25 x Valuation + 0.20 x Growth + 0.25 x Profitability
        + 0.20 x Financial health + 0.10 x Dividends

If a company pays no dividend, the dividend lens is skipped and the other weights re-scale so they still add to 100%. This avoids penalizing growth companies for a lens that does not apply to them.

Example (illustrative numbers)

Imagine a dividend-paying company whose lens results are 60 for valuation, 40 for growth, 80 for profitability, 70 for financial health and 50 for dividends. The weighted result is:

Strong profitability and balance sheet lift the score, while weak growth holds it back. The total hides these differences, which is why the breakdown matters more than the headline number. Two companies with a score of 62 can be completely different: one could be cheap but slow, the other expensive but fast.

How to read it

Rules of thumb:

• Use the score to sort and screen, then open the lenses behind it. A mid-range score built from a very strong lens and a very weak one needs more attention than a steady mid-range one.
• A high score says the company ranks well on the measures. It does not say the stock will go up, since a good business can still be overpriced, and the valuation lens is only one-quarter of the total.
• A low score may reflect temporary problems, a cyclical low, or a turnaround. Check the cause.
• Compare scores within a sector. Across sectors the percentile design already adjusts, but business models still differ.

What the score does not capture

• Qualitative factors. Management quality, competitive position, regulation and product pipelines do not appear in any ranking. See economic moat explained.
• The future. The score is built from filings and prices, so it describes where a company stands now rather than where it is headed.
• Price momentum and timing. It does not say when a stock will move.
• Data quirks. Reported numbers can contain one-off items, and percentile ranks can shift when peers report.
• Your own situation. Goals, time horizon and risk tolerance are personal.

Where to see it on StocksXray

The full list of inputs and the weighting rules are on the methodology page. Pair the score with the fair value label described in why fair value is a range, and with a structured process such as the one in how to research a stock.

Key takeaways

• The X-Ray Score runs from 0 to 100 and blends five lenses: valuation 25%, growth 20%, profitability 25%, financial health 20% and dividends 10%.
• Every metric is a percentile rank within the company's own sector, so the score is relative, not absolute.
• Non-dividend payers skip the dividend lens and the remaining weights re-scale.
• The score is a research aid. It leaves out qualitative factors and says nothing about timing.