Methodology

How we calculate the Steady Score and annualized growth rates.

Steady Score

The Steady Score (0-100) measures how consistently and smoothly a company grows its revenue, earnings, and dividends over time. A higher score means more predictable, uninterrupted growth — a hallmark of high-quality compounding businesses.

The score is a weighted average of three components:

Component	Weight
Revenue stability	35%
Earnings stability	35%
Dividends stability	30%

If a component has insufficient data it is excluded and the remaining weights are rescaled proportionally.

Component stability score

Each component is scored on three factors using up to 10 years of annual data:

Factor	Weight	Definition
Growth Consistency	70%	Share of year-over-year transitions where the metric increased
Change Smoothness	20%	1 - (volatility of annual changes / 0.5), floored at 0
Downside Resilience	10%	1 - (largest single-year decline / 0.5), floored at 0

Year-over-year change is measured as a symmetric ratio:

R = \frac{V_{current} - V_{previous}}{\max(|V_{previous}|, |V_{current}|)}

This keeps changes bounded in

[-1, 1]

and handles sign changes gracefully.

The raw score is then multiplied by a coverage factor:

C = \min\left(\frac{Y_{known}}{10}, 1\right)

to penalize companies with fewer than 10 years of history. At least 5 years of data and 4 valid transitions are required to produce a score at all.

Interpreting the Score

90 – 100: Elite Compounders. Exceptional consistency. Revenue and earnings grow almost every year with very low volatility.
75 – 89: High Stability. Very reliable growth. Likely a dominant player in its industry with strong competitive advantages.
50 – 74: Moderate Stability. Solid growth but may be subject to economic cycles or occasional "flat" years.
Below 50: Low Stability. Cyclical or volatile businesses. Growth is unpredictable or frequently interrupted by declines.

Annualized Growth Rate

The growth rate shown on each chart is derived from an exponential least-squares regression fitted to all available annual data points.

We perform an ordinary least squares regression on the logarithmic values:

\log(V) = \alpha + \beta \cdot T

where

V

is the metric value and

T

is the fiscal year. The annualized rate (CAGR) is then reported as:

CAGR = e^\beta - 1

Using all data points rather than just the first and last makes the estimate more robust to outlier years.

At least 5 positive data points are required to compute the trend.

Frequently Asked Questions

Why use Exponential Regression instead of simple CAGR?

A standard CAGR only looks at the first and last years. If a company had an exceptionally good first year or a temporary dip in the last year, the CAGR will be misleading. Our regression-based approach looks at every data point in the 10-year window, finding the "true" trend line that best describes the company's long-term trajectory.

What makes a "Steady Stock"?

In our model, "steady" means uninterrupted growth. We value a company that grows 10% every single year more highly than a company that grows 50% one year and stays flat the next. This predictability is often a signal of a "moat" or a durable competitive advantage.

How often is the data updated?

We pull new data from SEC EDGAR daily. As soon as a company files its annual (10-K) or quarterly (10-Q) report, our pipeline extracts the latest figures and recalculates the scores within 24 hours.

Data

Financial data (revenue, net income, dividends paid) comes from official SEC filings. The dataset is refreshed daily. Each stock page shows the date its data was last updated.

Steady Stocks covers a curated list of US-listed companies (NYSE, NASDAQ). Coverage expands over time.

Limitations

Historical growth does not guarantee future results.
The Steady Score reflects stability, not valuation or business quality in full.
Data may be delayed or incomplete for recent fiscal periods.
This site is for informational purposes only and is not financial advice.