freebirdcapitalThe Freebird Rating is my filter between screening and analysis. It does not replace company analysis; it decides which stock deserves one. It works in two stages: the quick test sorts out roughly with seven metrics, the full rating scores eleven metrics in three categories — with industry-specific thresholds, an investment profile and a dividend score that measures yield and growth together against the current interest-rate level. The RSI is shown but not scored. The pre-filled values are a fictitious example company, not a real stock.
Quick test: seven metrics
Growth
Quality
| Metric | 5 P. | 4 P. | 3 P. | 2 P. | 1 P. | Result |
|---|
Full rating: eleven metrics, three categories
Settings
Financial strength
Balance-sheet quality
Valuation and price position
| Metric | Value | Thresholds 5 / 4 / 3 / 2 pts | Points | Weight |
|---|
5 points from reference rate + 5 pp · 4 points from reference rate + 3 pp · 3 points from reference rate + 1 pp · 2 points from reference rate − 1 pp
Why: a dividend yield is only as good as the risk-free alternative. But a fixed coupon does not grow, a dividend does: a 3.2 % yield growing at 6 % reaches 5 % on cost after about eight years. That is why yield and growth count together. For US stocks that is the 10-year US Treasury, for European stocks rather EURIBOR or the ECB deposit rate. Pre-filled values: US Treasury 10 yrs about 5.0 % (mid-September 2026), 3-month EURIBOR 2.64 %, ECB deposit rate 2.50 % since 16 Sep 2026, Fed funds 3.75–4.00 %. Current values: FRED (series DGS10), ECB and the European Money Markets Institute.
How the score is built
- Points: each metric receives 1 to 5 points. Growth, payout ratio and price-to-book are measured against sector-specific thresholds — a utility paying out 70 % is normal, a technology company is not.
- Weights: the investment profile shifts the weights. In the dividend profile, the payout ratio and the combined yield-plus-growth metric count triple; in the growth profile, earnings development does. Dividend growth on its own counts once, because it is already part of the combined metric.
- RSI: the 14-day RSI only shows the price position — below 30 oversold, above 70 overbought. It does not enter the score: market timing is not part of the method.
- Dividend safety: a dividend is paid from cash, not from earnings. The payout ratio is therefore measured twice — against earnings and against free cash flow (operating cash flow less capital expenditure). The worse of the two values is scored, against the same sector thresholds. Real-estate companies are the exception: their earnings are distorted by depreciation, and the earnings-based ratio is often above 100 %. In the real-estate sector only the ratio against AFFO (FFO less recurring maintenance capital expenditure) counts, otherwise against FFO. FFO and free cash flow are different measures — depending on the sector, one or the other is entered. A negative free cash flow is entered as a negative number and scores 1 point; if the field is left empty, only the earnings-based ratio counts.
- Verdict: from 70 % of the maximum a stock is a candidate for in-depth analysis, between 55 and 70 % it goes on the watch list, below that it is out.
Then the real work follows: business model, return on capital (ROIC calculator) and a fair price (fair value calculator). How this fits the overall process is shown on the method page.
Own scoring model, developed 2017 to 2021; dividend-score thresholds aligned with the interest-rate level in September 2026; in October 2026 yield and growth were combined, the RSI was removed from the score and the payout ratio was extended by free cash flow. Runs entirely in your browser; no inputs are stored or transmitted.
