Our Approach

Diogenes Research is an independent specialist research service provider, with expertise in the provision of forensic style diagnostic review of the accounting and financial statements of companies.  

Our research offering differs from the majority of broker research, and is designed to complement our client’s internal investment processes, rather than to make earnings forecasts and stock recommendations.

A core focus of the service is illuminating ‘risk’ and ‘reward’ via a deep diagnostic review of the accounting and financial statements of companies. Our reliance on analysis, rather than prediction, is aimed at understanding the financial framework of companies, and thereby the prospects for future investment performance.

Areas of particular focus and expertise include a thorough analysis of:

Earnings Quality Analysis 

Following on from the research into accounting accruals undertaken by Sloan et al, we spend a large amount of time understanding the robustness of reported earnings and the extent to which earnings momentum is managed by companies.  Our model portfolios based on this analysis have generated very strong historical performance.

Returns Analysis

Using a detailed understanding of the composition of company returns our analysis helps to identify not only the relative attractiveness of company business models, but also the sustainability of returns relative to the industry cycle and company peers.

Balance Sheet Analysis

Balance sheets contain both upside optionality and hidden risks that are regularly mispriced by the markets.  Our analysis goes beyond simple debt/equity metrics to understand the balance sheet in the context of the business model, industry cycle and earnings quality, with a particular focus on off-balance sheet liabilities and working capital flows.


We view valuation as an input into the analysis process rather than an output of that process, with the reliability of the valuation signal varying significantly depending upon the above analysis factors.  As such we have a strong focus on valuation metrics that aim to highlight potential anomalies not captured in traditional PER or DCF based approaches. 


As a general rule, we do not spend significant time liaising with company management and industry contacts.  We feel this analysis is already well catered for by both broking firms and our clients internal research departments.  Instead we focus on analysing management incentives and trying to link these to company performance, particularly earnings quality and balance sheet movements. Our approach when evaluating management is “do as I do, not as I say.”

Our Products

All research is produced with the same underlying research process and philosophy, and is currently available in two formats:

Dog Research is a personalised, full service research offering covering all listed equities. Services include:

  • Access to all analysis, including Comprehensive Analysis, Result Monitors, IPO Analysis, Sector Reviews, Screening Reviews, Earnings Portfolio Reviews, etc.
  • Access to comprehensive industry databases, global comps, company models, screening models & governance analysis.
  • Regular Analyst meetings (face-to-face) and full access to the Analysts whenever required;
  • Ability to request bespoke research projects (including a period of exclusive access to that analysis).

Please be aware that in order to preserve the high service levels provided by the Dog Research offering, client numbers are restricted and we currently have limited capacity for additional clients.

Pup Research is a subscription based research service focussed on mid, small and micro cap companies (ex the ASX100 Index). Services include:

  • Access to analysis on the ex-ASX100 industrial companies under coverage.
  • A low personal touch delivery model, with services delivered via Alert emails and access to the website database.
  • Access to Company Research, Best Ideas and Earnings Quality reviews, Screening Reviews, Governance Analysis and Screening Models.
  • Access to financial models on all relevant companies.

This service is best suited to small cap fund managers and sophisticated private investors.


If you are interested in becoming a subscriber or understanding more about any of the services provided by Diogenes Research, please contact: