Net Income Growth 5-Year CAGR Function

The NetIncomeGrowthFiveYearCAGR function helps you seamlessly calculate a company's net income growth rate over a five-year period using a compound annual growth rate (CAGR) approach. By returning this single numeric value directly into your Excel sheet, it becomes easy to track and compare the long-term net income expansion rates of various stocks. With MarketXLS, you can streamline fundamental analysis and quickly spot trends indicative of healthy earnings growth.

Why Use This Function?

• Quickly assess a stock’s long-term earnings performance.
• Compare net income growth trends across multiple symbols at once.
• Identify stable or accelerating net income, a potential sign of solid business fundamentals.
• Automate recurring analysis without manual data entry—no more looking up 10-K filings separately for five-year data.
• Easily incorporate CAGR calculations into broader investment models and portfolio trackers.

How to Use in Excel

=NetIncomeGrowthFiveYearCAGR("SYMBOL")

• Enter the function into an Excel cell.
• Replace "SYMBOL" with any valid stock ticker symbol, e.g., “AAPL” or “MSFT.”
• The function will return the five-year CAGR percentage of net income growth.
• If MarketXLS cannot fetch valid fundamental data or if the symbol is not recognized, the function will return "NA."

Parameters Explained

• Only one parameter is required.
• An invalid or unrecognized symbol will result in "NA."

Example Usage

Basic Examples

1. =NetIncomeGrowthFiveYearCAGR("MSFT")
   • Retrieves Microsoft’s net income growth CAGR over the last five years.
   • If successful, returns a numeric value (e.g., 12.34).

2. =NetIncomeGrowthFiveYearCAGR("AAPL")
   • Fetches the five-year CAGR for Apple’s net income.
   • Great for quick comparison alongside other financial metrics in Excel.

3. =NetIncomeGrowthFiveYearCAGR("GOOGL")
   • Displays Alphabet’s net income 5-year CAGR in a single step.

Advanced Scenarios

• Combine With Other Excel Formulas:
=IF(NetIncomeGrowthFiveYearCAGR("IBM")>10, "High Growth", "Slower Growth")
• Automatically flags companies that have exceeded 10% CAGR over the past five years.

• Portfolio Monitoring:
Use a table of ticker symbols in one column, then drag the function down to calculate each symbol’s five-year net income growth CAGR for side-by-side comparisons.

• Pair with Valuation Metrics:
Incorporate =NetIncomeGrowthFiveYearCAGR("XYZ") into a more complex model—e.g., an intrinsic value calculation or a discounted cash flow (DCF)—to see how net income growth fuels valuation changes over time.

Common Questions and Troubleshooting

1. What if the symbol is invalid?
   • The function will return "NA" if MarketXLS cannot validate the ticker.

2. Why am I seeing a license-related message or "NA"?
   • Ensure your MarketXLS subscription is active. An inactive or invalid license will cause "NA" or a prompt.

3. Can I use this function for non-equity symbols?
   • The function is designed for equities with available net income data. If net income data is unavailable, "NA" is returned.

4. What if the returned CAGR is negative?
   • A negative CAGR can occur if net income dropped over the five-year period, indicating a decline in profitability.

5. Do I need to specify a date range?
   • No. This function automatically extracts the last five years of net income data for CAGR calculations.

Use NetIncomeGrowthFiveYearCAGR to quickly see which stocks have the strongest earnings momentum and to guide your decision-making. By leveraging this function, you gain efficient insights into corporate performance directly in Excel—saving you time while improving the clarity of your investment analysis.