Methodology & Data Sources

Data Sources

MoatCheck aggregates data from publicly available sources to provide a unified view for investment research.

SEC EDGAR

Financial statements, annual reports (10-K), quarterly reports (10-Q), and other mandatory filings are sourced from the U.S. Securities and Exchange Commission's EDGAR database. This is the official repository for public company filings in the United States.

Financial Data Providers

Additional financial metrics and market data may be sourced from third-party financial data providers. These providers aggregate and standardize financial data from multiple sources.

News and Updates

Company news and filing updates are sourced via RSS feeds from official sources. This helps you stay informed about recent developments without manually checking multiple sites.

Moat Analysis Framework

MoatCheck provides structured frameworks for analyzing competitive advantages. These frameworks are based on widely-accepted investment principles, including concepts popularized by Warren Buffett and analyzed by researchers like Pat Dorsey.

Types of Moats Analyzed

• Intangible Assets: Patents, brands, regulatory licenses that competitors cannot easily replicate
• Switching Costs: Costs (monetary, time, or effort) that make customers reluctant to switch to competitors
• Network Effects: Products or services that become more valuable as more people use them
• Cost Advantages: Structural cost advantages from scale, location, or unique assets
• Efficient Scale: Markets where limited demand supports only one or a few competitors profitably

Quantitative Indicators

MoatCheck presents financial metrics that may indicate moat strength, including:

• Return on Invested Capital (ROIC): Consistently high ROIC may indicate pricing power or cost advantages
• Gross and Operating Margins: Stable or expanding margins may indicate competitive advantages
• Revenue Growth: Sustainable growth without margin compression may indicate moat durability
• Market Share Trends: Ability to maintain or grow market share over time

Limitations

While MoatCheck aims to provide useful tools for investment research, users should be aware of important limitations:

Data Accuracy

Data is sourced from third-party providers and official filings, but errors can occur in aggregation and presentation. Always verify important data points against primary sources (original SEC filings) before making decisions.

Historical Data

Past performance does not guarantee future results. A company with historically strong metrics may face competitive pressures, management changes, or industry disruptions that affect future performance.

Qualitative Factors

Quantitative data alone cannot capture all factors that affect a company's competitive position. Management quality, corporate culture, regulatory environment, and technological change require qualitative judgment that no automated tool can provide.

Coverage

MoatCheck focuses on U.S. public companies with SEC filings. International companies, private companies, and newly public companies may have limited or no coverage.

Important Disclaimers