edgar-sec-filings

# SEC EDGAR Filing Analysis

## Overview

Analyze US public company filings from SEC EDGAR to extract fundamental insights, risk signals, and investment-relevant information. Covers annual reports (10-K), quarterly reports (10-Q), current events (8-K), proxy statements (DEF 14A), and insider transactions (Form 4).

This skill provides the analytical framework for interpreting SEC filings. Data retrieval uses `read_url` tool with EDGAR URLs or `yfinance` Ticker objects for structured financial data.

## Filing Types and Investment Relevance

| Filing | Frequency | Key Content | Signal Value |
|--------|-----------|-------------|--------------|
| 10-K | Annual | Full-year financials, risk factors, MD&A, segment data | Comprehensive fundamental view |
| 10-Q | Quarterly | Quarterly financials, interim MD&A, legal updates | Trend confirmation / inflection detection |
| 8-K | Event-driven | Material events: M&A, CEO change, restatement, guidance | Catalyst / risk trigger |
| DEF 14A | Annual (proxy) | Executive comp, board composition, shareholder proposals | Governance quality signal |
| Form 4 | Within 2 days | Insider buys / sells | Insider conviction signal |
| 13F | Quarterly | Institutional holdings >$100M AUM | Smart money positioning |
| SC 13D/G | Event-driven | >5% ownership stake disclosure | Activist / strategic investor signal |

## EDGAR Data Access

### Direct EDGAR URLs

```python
# Company filings search
# https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK={ticker}&type={filing_type}

# Example: Apple 10-K filings
url = "https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=AAPL&type=10-K&dateb=&owner=include&count=10"

# EDGAR full-text search (EFTS)
# https://efts.sec.gov/LATEST/search-index?q={query}&dateRange=custom&startdt={start}&enddt={end}
```

### Via yfinance (structured data)

```python
import yfinance as yf
ticker = yf.Ticker("AAPL")

# Financial statements (derived from 10-K/10-Q)
income = ticker.financials           # Annual income statement
income_q = ticker.quarterly_financials  # Quarterly
balance = ticker.balance_sheet       # Balance sheet
cashflow = ticker.cashflow           # Cash flow statement

# Insider transactions (derived from Form 4)
insider = ticker.insider_transactions

# Institutional holders (derived from 13F)
institutions = ticker.institutional_holders
major = ticker.major_holders
```

## 10-K / 10-Q Analysis Framework

### I. Financial Statement Deep Dive

**Income Statement Focus:**
- Revenue growth rate: YoY and QoQ acceleration / deceleration
- Gross margin trend: expanding (pricing power) vs compressing (cost pressure)
- Operating leverage: SG&A as % of revenue declining = positive operating leverage
- R&D intensity: R&D / revenue ratio vs peers
- Non-recurring items: restructuring charges, impairments, one-time gains

**Balance Sheet Focus:**
- Cash & equivalents vs total debt: net cash / net debt position
- Current ratio and quick ratio: liquidity health
- Goodwill / intangibles as % of total assets: acquisition-driven growth risk
- Inventory days (for manufacturers / retailers): rising = demand weakness signal
- Accounts receivable days: rising = collection risk or channel stuffing

**Cash Flow Focus:**
- FCF = Operating CF - CapEx: true cash generation power
- FCF conversion = FCF / Net Income: >80% = high earnings quality
- CapEx intensity = CapEx / Revenue: rising = growth investment or maintenance burden
- Stock-based compensation: add back to get true cash earnings
- Buyback vs dividend: capital return strategy signal

### II. MD&A (Management Discussion & Analysis)

The MD&A section is the most qualitative and forward-looking part of the filing.

**Key extraction targets:**
1. **Revenue drivers**: which segments / geographies are growing, which are declining
2. **Margin commentary**: management explanation for margin changes
3. **Forward guidance language**: "expect", "anticipate", "believe" — tone shift detection
4. **Risk factor changes**: compare risk factors vs prior filing; NEW risks added = material change
5. **Liquidity and capital resources**: debt maturity schedule, credit facility availability

**Tone analysis signals:**
```python
# Simplified tone scoring
positive_words = ["growth", "improvement", "strong", "exceeded", "momentum", "opportunity"]
negative_words = ["challenging", "decline", "uncertainty", "headwind", "pressure", "risk"]
cautious_words = ["moderate", "cautious", "prudent", "measured", "selective"]

# Count frequency change vs prior filing
# Rising negative word count = deteriorating outlook
# Rising cautious words = management hedging
```

### III. Risk Factor Analysis

**Risk factor change detection (10-K vs prior 10-K):**

| Change Type | Signal | Action |
|-------------|--------|--------|
| New risk factor added | Material new risk identified | Deep dive on the specific risk |
| Risk factor removed | Risk resolved or deemed immaterial | Positive signal if genuine resolution |
| Language intensified | Risk escalating | Review exposure and hedging |
| Order changed (moved higher) | Risk priority elevated | Assess potential impact magnitude |

**Common risk categories for US equities:**
- Regulatory / legal risk (antitrust, FDA, patent expiry)
- Customer concentration (>10% revenue from single customer must be disclosed)
- Geographic concentration (China exposure, emerging market risk)
- Technology disruption risk
- Cybersecurity risk (new SEC mandate: material cybersecurity incidents must be disclosed in 8-K)
- Climate / ESG risk (increasingly required)

## 8-K Event Analysis

### Material Event Classification

| Event Type | 8-K Item | Typical Price Impact | Time Sensitivity |
|------------|----------|---------------------|------------------|
| Earnings pre-release | 2.02 | High | Immediate |
| M&A announcement | 1.01 | Very high | Immediate |
| CEO / CFO departure | 5.02 | Medium-high | Same day |
| Restatement | 4.02 | Very high (negative) | Immediate |
| Guidance revision | 7.01/