Yahoo Finance Is Yandex NV (NASDAQ:YNDX) A Financially Sound Company?
Yandex NV (NASDAQ:YNDX), a large-cap worth US$11.82b, comes to mind for investors seeking a strong and reliable stock investment. Market participants who are conscious of risk tend to search for large firms, attracted by the prospect of varied revenue sources and strong returns on capital. However, the health of the financials determines whether the company continues to succeed. Let’s take a look at Yandex’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself into YNDX here. See our latest analysis for Yandex
Does YNDX produce enough cash relative to debt?
YNDX has sustained its debt level by about US$17.83b over the last 12 months made up of current and long term debt. At this current level of debt, YNDX’s cash and short-term investments stands at US$65.70b , ready to deploy into the business. Additionally, YNDX has generated cash from operations of US$23.77b over the same time period, resulting in an operating cash to total debt ratio of 133.30%, indicating that YNDX’s operating cash is sufficient to cover its debt. This ratio can also be a sign of operational efficiency as an alternative to return on assets. In YNDX’s case, it is able to generate 1.33x cash from its debt capital.
Can YNDX pay its short-term liabilities?
Looking at YNDX’s most recent US$35.62b liabilities, the company has been able to meet these commitments with a current assets level of US$80.76b, leading to a 2.27x current account ratio. For Internet companies, this ratio is within a sensible range as there’s enough of a cash buffer without holding too capital in low return investments.
Is YNDX’s debt level acceptable?
With a debt-to-equity ratio of 10.51%, YNDX’s debt level may be seen as prudent. YNDX is not taking on too much debt commitment, which can be restrictive and risky for equity-holders.
Next Steps:
YNDX has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level. Furthermore, the company exhibits an ability to meet its near-term obligations, which isn’t a big surprise for a large-cap. I admit this is a fairly basic analysis for YNDX’s financial health. Other important fundamentals need to be considered alongside. You should continue to research Yandex to get a more holistic view of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for YNDX’s future growth? Take a look at our free research report of analyst consensus for YNDX’s outlook.
Valuation: What is YNDX 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 YNDX is currently mispriced by the market.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
