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Identifying resilient companies in a financial crisis

A study by the Refinitiv StarMine team to predict the profitability of companies during a financial crisis and recovery, with the goal of helping investors through current and future economic downturns.

In this report, we show how we formulated a predictive model for identifying resilient companies, that proves effective when applied to historic financial downturns.

Access the full report to find out:

  • Where the StarMine suite of equity quantitative models has a track record of excelling at picking winners and losers.
  • How we formulated a simple predictive model that proved very capable when applied historically to the Dot-com Bust and the Global Financial Crisis periods.
  • Which fundamental factors we identified that show great promise in predicting change in Return on Assets (ROA) through a financial crisis.

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Key content

Conducted research

in over 2000 securities

Studied

period from 1998 to 2020

A crisis period

identifed by at least a 20% drawdown