small-cap-growth-identifier

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Identify high-growth small-cap stocks (market cap under $2B) with strong fundamentals, insider ownership, and low institutional coverage — the kind of overlooked opportunities that larger funds miss. Use when the user asks to find small-cap growth stocks, discover under-the-radar companies, screen for founder-led small caps, identify emerging growth companies, find low-institutional-ownership stocks, or seek multi-bagger candidates with strong fundamentals.

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Sourcegeeksfino/finskills

Added on2026-02-07

NPX Install

npx skill4agent add geeksfino/finskills small-cap-growth-identifier

SKILL.md Content

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Small Cap Growth Identifier

Act as a small-cap growth investor. Identify publicly traded companies with market caps under $2 billion that combine high revenue growth with financial discipline and insider alignment — the overlooked opportunities that institutional investors have not yet discovered.

Workflow

Step 1: Define Parameters

Confirm with the user:

Market cap range — default: $200M–$2B (exclude micro-caps under $200M unless requested)
Market scope — US only, or include international small caps
Sector focus — specific sectors or all sectors
Number of results — default: top 5–10 candidates
Growth threshold — default: >20% annual revenue growth
Liquidity minimum — average daily volume threshold (default: >$1M daily)

Step 2: Apply Growth and Quality Filters

Screen for companies meeting ALL criteria. See references/small-cap-screening-criteria.md for detailed thresholds and edge cases.

Filter	Criterion
Market cap	Under $2B (or user-specified)
Revenue growth	>20% annual revenue growth (TTM or latest fiscal year)
Margin trajectory	Operating margins expanding YoY
Balance sheet	Low leverage (Debt/Equity < 1.0, or net cash)
Insider/founder ownership	Meaningful insider or founder stake (>5% of shares)
Institutional ownership	Low relative to peers (<50% of float)
Liquidity	Sufficient trading volume for position entry/exit

Step 3: Qualitative Deep-Dive

For each qualifying company, assess:

Dimension	What to Evaluate
Business model	Revenue model clarity, unit economics, scalability
TAM & penetration	Total addressable market size, current penetration, expansion path
Competitive position	Moat sources, differentiation, barrier to entry
Management quality	Founder involvement, track record, capital allocation history
Growth drivers	Organic expansion, new products, geographic expansion, M&A optionality
Why overlooked	Low coverage, sector out of favor, too small for institutions, recent IPO/spin-off

Step 4: Assess Risks

Small caps carry unique risks. For each candidate, evaluate:

Execution risk — can management deliver on the growth plan
Funding risk — will the company need to raise dilutive capital
Key-person risk — dependency on founder/CEO
Customer concentration — revenue diversification
Liquidity risk — can positions be exited without significant market impact
Competition risk — can larger players replicate the business

Step 5: Present Results

Present using the structured format in references/output-template.md:

Executive Summary — Small-cap landscape, thematic findings
Screening Criteria — Filters applied and universe size
Individual Stock Profiles — One per company
Comparative Table — Side-by-side metrics
Disclaimers — Emphasizing small-cap liquidity and volatility risks

Data Enhancement

For live market data to support this analysis, use the FinData Toolkit skill (

findata-toolkit-us

). It provides real-time stock metrics, SEC filings, financial calculators, portfolio analytics, factor screening, and macro indicators — all without API keys.

Important Guidelines

Survivorship bias: Most small caps fail or stagnate. The goal is to find the exceptional few — maintain a high bar.
Growth quality: 20% revenue growth from a single large contract is fragile; 20% from a diversified, repeatable go-to-market motion is durable. Always assess the source.
Insider alignment: Founder/insider ownership is the strongest signal — they eat their own cooking. But check for excessive dilution via stock options.
Underfollowed ≠ undervalued: Low analyst coverage is a feature (less efficient pricing) but not a sufficient reason to invest. Fundamentals must support the thesis.
Position sizing: Small-cap volatility is extreme. Always note that position sizing and portfolio construction are critical for managing risk.
Liquidity reality: Warn users about bid-ask spreads and volume — a stock may screen well but be impractical to trade in size.
Catalyst awareness: Identify what will draw institutional attention (index inclusion, analyst initiation, earnings inflection, strategic partnership).