Equity Research Report

Equity Research Report

When to Activate

Trigger when user asks: "equity research report", "research report", "full research report with scenarios", "internal equity research report", "initiate coverage", "research note on [company]", "write a research report"

Report Structure (10 Sections)

1. RECOMMENDATION: Buy/Hold/Sell rating, price target, upside/downside potential, risk rating, investment timeframe
2. INVESTMENT THESIS: Core thesis in 2-3 sentences, 3-5 supporting pillars, variant perception from consensus
3. FINANCIAL MODEL: Revenue breakdown by segment, margin analysis (gross/operating/net), EPS trends and estimates, FCF generation, balance sheet strength
4. SCENARIO ANALYSIS (Bull/Base/Bear): probability-weighted with price targets and key drivers
5. INDUSTRY ANALYSIS: Market size and growth, competitive landscape, regulatory environment
6. RISK ASSESSMENT: Risk matrix (impact x probability), key risks ranked, mitigation strategies
7. CATALYSTS: Near-term (3-6 months), medium-term (6-18 months), long-term (18+ months)
8. VALUATION: DCF summary, relative valuation vs peers, historical valuation context
9. ESG CONSIDERATIONS: Material ESG factors, ESG rating assessment
10. MONITORING PLAN: KPIs to track, thesis validation signposts, thesis invalidation triggers

Workflow

Step 1: Financial Foundation

Tool: fundamentals_analyzer Query: Consensus estimates (high/mean/low), price targets (max/avg/min), analyst ratings, historical financials

Tool: segment_analyzer + sec_financials Query: Revenue segments, geographic breakdowns, margins, 3-year annual + 4-quarter trends

Present:

• Company overview: "[Company] ([Ticker]) — [Sector], Market Cap $[X]B"
• Financial snapshot table: Revenue, EPS, margins for latest 4 quarters + 3 years
• Consensus: [X] analysts, [Y]% Buy, avg target $[X] ([+/-X]% upside)
• Segment breakdown: revenue by business line and geography

STOPPING POINT 1 — Financial Data Gathered

"I've gathered the financial foundation — fundamentals, segments, and consensus estimates. I can:

• Continue to research phase (SEC filings, broker research, earnings calls, press releases)
• Adjust the scope (focus on specific segments or time periods)
• Run competitive analysis first (compare to peers before building the thesis) → loads competitive-intelligence skill
• Check insider/institutional ownership (smart money signals) → loads insider-institutional-analysis skill

Which approach works best?"

Step 2: Research Gathering

Tool: search_sec_filings Query: 10-K risk factors, MD&A narrative, business description, competitive positioning

Tool: search_external_docs (filter: broker_research) Query: Recent analyst views, sector analysis, competitive positioning, price target rationale

Tool: search_company_events Query: Management guidance, strategic commentary, outlook from recent earnings calls

Tool: search_external_docs (filter: press_releases) Query: Recent catalysts, corporate developments, M&A activity, product launches

STOPPING POINT 2 — All Research Gathered

"Research phase complete. Here's what I found:

• Financial model: [1-sentence summary of financial trajectory]
• Bull case drivers: [Top 2 catalysts]
• Bear case risks: [Top 2 risks from SEC filings]
• Analyst consensus: [Bullish / Mixed / Bearish] with [X]% Buy ratings

I can:

• Generate the full 10-section report (recommended — compile everything)
• Review scenario assumptions (before I map Bull/Base/Bear cases)
• Deep-dive a specific area (risk factors, competitive position, or ESG)
• Generate a shorter executive summary (2-page version for time-pressed readers)

How would you like to proceed?"

Step 3: Report Compilation

Synthesise all gathered data into the 10-section format.

For Scenario Analysis (Section 4):

• Map consensus_high → Bull, consensus_mean → Base, consensus_low → Bear
• See SCENARIO_FRAMEWORK.md for methodology
• Calculate probability-weighted expected return: Σ(probability × return)

Step 4: Optional PDF Generation

If user explicitly requests PDF: Tool: pdf_generator Parameters: report_title = "[Company] ([Ticker]) — Equity Research Report", document_audience = "internal"

Audience Branching

• Executive Summary (CIO/Board — 2 pages): Recommendation + Thesis + Scenario table + Key Risks only (Sections 1, 2, 4, 6)
• Full Research Report (PM/Analyst — 8-10 pages): All 10 sections with full detail
• Client Presentation (Client/Prospect — 3-4 pages): Sections 1, 2, 4, 7 in plain language, no internal jargon, positive framing

Output Template

# [Company] ([Ticker]) — Equity Research Report

**Rating**: [BUY / HOLD / SELL] | **Price Target**: $[X] ([+/-X]% upside) | **Risk**: [Low / Medium / High]

---

## 1. Recommendation
[2-3 sentences with rating rationale and timeframe]

## 2. Investment Thesis
**Core thesis**: [2-3 sentences]
| Pillar | Evidence | Confidence |
|--------|----------|------------|
| [Pillar 1] | [Data point] | [High/Medium/Low] |

## 3. Financial Model
| Metric | FY[X-2] | FY[X-1] | FY[X]E | FY[X+1]E |
|--------|---------|---------|--------|----------|
| Revenue | [X] | [X] | [X] | [X] |
| EPS | [X] | [X] | [X] | [X] |

## 4. Scenario Analysis
| Scenario | Probability | Price Target | Revenue Growth | EPS | Key Driver |
|----------|-------------|-------------|---------------|-----|-----------|
| Bull | [20-25]% | $[X] | [X]% | $[X] | [Driver] |
| Base | [50-60]% | $[X] | [X]% | $[X] | [Driver] |
| Bear | [20-25]% | $[X] | [X]% | $[X] | [Driver] |

**Probability-Weighted Expected Return**: [X]%

## 5-10. [Remaining sections follow report structure above]

Cross-Skill References

• "Want competitive context first?" → competitive-intelligence skill
• "Check ownership signals?" → insider-institutional-analysis skill
• "Recent earnings insights?" → earnings-intelligence skill
• "Generate PDF?" → pdf-report-generation skill
• "Adapt for different audience?" → audience-adaptive-narrative skill

Stopping Points

• After Step 1 (financial foundation): Offer scope adjustment + cross-skill options
• After Step 2 (all research gathered): Offer report generation + review options
• After Step 3 (report compiled): Offer PDF generation + audience adaptation