The loops that compound

  • Each step of the loop named in order
  • Labeled by what it compounds: margin, defensibility, growth
  • Derived from what the company says in its own filings
  • Cited back to the 10-K or 10-Q section it came from
  1. 1Low prices, few SKUs
  2. 2Higher sales volumes
  3. 3Rapid inventory turnover
  4. 4Purchasing and distribution scale
  5. 5Profitable at lower margins
  6. ↻back to step 1

Low-price / high-turnover flywheel·compounds margin

How it breaks

  • The mechanism, not just the risk label
  • Watch metrics you can actually monitor
  • The verbatim filing sentence behind each one
  • Sourced from the 10-K and 10-Q (Items 1 and 1A, MD&A), not from a press release

Export controls restrict ability to compete in China data center market

Licensing/performance-threshold controls can foreclose competitive products and create inventory/purchase obligation charges.

watchChina Data Center revenue as % of totalInventory provisions/excess purchase obligations

“Unless we are able to return with a product that meets the approval of both the USG and the Chinese government, our lost opportunity”

10-K · Item 1 — Business (Government Regulations)

Supply constraints and long lead times cause inability to meet demand or excess inventory

Extended lead times and forecasting errors can lead to shortages or write-downs and cancellation penalties.

watchSupply and capacity commitmentsInventory provisionsGross margin

“Significant mismatches between supply and demand have varied across our market platforms, resulted in both product shortages and excess inventory”

10-K · Item 1A — Risk Factors (Demand, Supply, and Manufacturing)

Customer buildout constraints (land/power/shell/capital) delay deployments and revenue timing

Data center expansion is multi-year; shortages of land/power/shell/energy and constrained capital can delay or reduce adoption.

watchDeferred revenue/customer advancesGuarantees/commitmentsData Center revenue growth

“any shortage of these or other necessary resources could impact our future revenue and financial performance.”

10-Q · Item 2 MD&A — Recent Developments, Future Objectives and Challenges

Every claim is checkable

  • Form type, item section, and a verbatim quote
  • A direct URL to the filing document on SEC EDGAR
  • No press releases, no transcripts, no third-party commentary
  • A confidence rating travels with the model
economic-model
// GET /api/company/economic-model?symbol=COST
// every claim carries the filing it came from
{
  "structuralAdvantages": [
    {
      "advantage": "Membership model with high renewal rates",
      "type": "switching-cost",
      "persistence": "strong",
      "watchMetrics": ["renewal rate", "membership fee revenue"],
      "sources": [
        {
          "source": "10-Q",
          "section": "Item 2 — MD&A (Membership fees)",
          "quote": "At the end of the third quarter of 2026, our renewal rates were 92.2% in the U.S. and Canada and 89.7% worldwide.",
          "url": "https://www.sec.gov/Archives/edgar/data/909832/000090983226000051/cost-20260510.htm"
        }
      ]
    }
    // ...
  ]
}
AI Ready

Built for research agents

Connect StockFit to Claude, Cursor, or VS Code via MCP. Your agent gets the reasoning and the citation together.

What the model contains

One call per company returns the full qualitative structure, every section carrying its own sources.

Flywheels

The self-reinforcing loops a business runs on, step by step and in order, each labeled by what it compounds: margin, defensibility, or growth.

Failure Modes

How the business breaks, with the transmission mechanism spelled out and the specific metrics to watch for each one.

Operating Levers

What management can actually pull, the direction each one moves results, and the reported metrics each lever maps onto.

Structural Advantages

Switching costs, network effects, scale economies, brand, and IP, each with its mechanism, expected persistence, and the levers it protects.

Strategic Initiatives

What the company is building, its stage and time horizon, expected financial impact, which levers it affects, and what to watch to see if it works.

Economics & Allocation

Offerings and their margin profiles, unit economics, cost structure, cash conversion, capital allocation priorities, and management orientation.

Qualitative company research API: business model structure, competitive advantages, flywheels, operating levers, failure modes, strategic initiatives, unit economics, and capital allocation. Extracted from SEC filings with a citation on every claim.

One Source

SEC EDGAR filings, nothing else

Cited

Form, section, and verbatim quote on every claim

Structured

Typed JSON, not prose you have to parse

Frequently asked questions

Every endpoint mentioned links to its full Swagger documentation.

Is this AI-generated?+
Yes, and that is exactly why every claim is cited. The model is produced by reading a company's SEC filings and structuring what they say into typed JSON. What makes it usable rather than decorative is that each entry carries the form type, the item section, a verbatim quote, and a direct URL to the filing, so you can check any statement against the source in one click instead of trusting the summary. A provenance.confidence rating travels with the model so you know how much weight it carries.
Where does the input come from?+
SEC EDGAR filings only: 10-K, 10-Q, and DEF 14A. No earnings-call transcripts, no press releases, no analyst notes, no third-party commentary. That constraint is deliberate. It is what makes every claim traceable to a document with a legal filing date, and it is why a quote in the model can be located in the original filing rather than merely sounding plausible.
What does a flywheel actually look like in the response?+
A name, an ordered list of loop steps, an impact label saying what the loop compounds, and its sources. NVIDIA's developer-ecosystem loop runs from developers adopting CUDA, to more optimized frameworks, to higher platform adoption, to a larger installed base that strengthens the ecosystem, tagged defensibility and sourced to Item 1 of the 10-K. Costco's low-price loop runs from low prices to volume to turnover to purchasing efficiency to the ability to operate on lower margins, tagged margin.
How is this different from a risk-factors summary?+
Risk factors are a list. A failure mode names the transmission mechanism and the metrics that would show it happening. For NVIDIA, "export controls" is the risk; the model states that licensing and performance-threshold controls can foreclose competitive products and create inventory and purchase-obligation charges, and tells you to watch China data center revenue as a share of total revenue, and inventory provisions and excess purchase obligations. The difference is between knowing a risk exists and knowing what it would do and where it would show up first.
How do I get it?+
GET /api/company/economic-model returns the whole structure in one call.
How current is it, and does it change?+
The model is built from a company's most recent filings, so it moves when the filings move. A new 10-K that adds a risk factor or names a new initiative changes the model on the next generation, and the sources shift to the newer document. Quotes always point at the filing the claim was drawn from, so a stale claim is visible rather than silent.
Which companies are covered?+
Models are generated per company on demand rather than precomputed for the whole universe, so the first request for a rarely-queried name takes longer than a cached one. Coverage naturally concentrates on companies people actually ask for. If you need a specific list warmed up ahead of a project, ask and we will handle it.
Can an AI agent consume this directly?+
That is the main use case. The response is typed JSON rather than prose, so an agent can walk flywheels, levers, and failure modes as data, and the per-claim sources mean it can cite a filing instead of asserting. StockFit also speaks the Model Context Protocol, so Claude, Cursor, and VS Code can call it as a tool with the same API key.
Is there a free tier?+
Yes, and it needs no credit card. The economic model itself sits on the paid tiers because each one is generated per company, but you can explore company details, financials, and filings for free while you evaluate.

Read the business, not just the balance sheet

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