Yahoo Finance Brief Commentary On Vista Group International Limited's (NZSE:VGL) Fundamentals
Vista Group International Limited (NZSE:VGL) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of VGL, it is a financially-sound company with an impressive track record and a buoyant future outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Vista Group International here.
Flawless balance sheet with reasonable growth potential
VGL is an attractive stock for growth-seeking investors, with an expected earnings growth of 22% in the upcoming year. This growth in the bottom-line is bolstered by an impressive top-line expansion of 52% over the same period, which is a sustainable driver of high-quality earnings, as opposed to pure cost-cutting activities. Over the past year, VGL has grown its earnings by 27%, with its most recent figure exceeding its annual average over the past five years. Not only did VGL outperformed its past performance, its growth also surpassed the Software industry expansion, which generated a 7.7% earnings growth. This is an optimistic signal for the future.
VGL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that VGL manages its cash and cost levels well, which is a crucial insight into the health of the company. VGL appears to have made good use of debt, producing operating cash levels of 2.31x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
Next Steps:
For Vista Group International, I've put together three key factors you should further examine:
Valuation: What is VGL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether VGL is currently mispriced by the market.
Dividend Income vs Capital Gains: Does VGL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from VGL as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of VGL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
