Financial statements are the language of companies. Understanding them is the core of fundamental analysis and helps you judge whether a stock is cheap or expensive. EGX companies publish quarterly and annual statements.

1. Income statement (P&L)

Shows performance over a period: revenue, cost of sales, gross profit, expenses, and net profit. Track revenue and net-profit growth across quarters, and the profit margin (net profit ÷ revenue).

2. Balance sheet

A snapshot: assets = liabilities + equity. Watch debt versus equity, and liquidity (current assets vs current liabilities). High debt is risky in a high-interest-rate environment.

3. Cash-flow statement

Accounting profit is one thing; actual cash is another. Focus on operating cash flow — a company that's profitable on paper but cash-flow negative may be in trouble.

What to look for

  • Consistent growth in revenue and profit.
  • Reasonable debt and positive operating cash flow.
  • Compare ratios to the sector average.

The key financial metrics are ready on each stock page, or ask the AI assistant to summarize a company's results.