Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Powerbridge Technologies Co., Ltd. (NASDAQ:PBTS) due to its excellent fundamentals in more than one area. PBTS is a financially-robust company with an optimistic future outlook, not yet reflected in the share price. Below, I've touched on some key aspects you should know on a high level. If you're interested in understanding beyond my broad commentary, read the full report on Powerbridge Technologies here.
Excellent balance sheet and good value
Investors in search of impressive top-line expansion should look no further than PBTS, with its expected 91% revenue growth in the upcoming year, made up of high-quality, operational cash from its core business, which is expected to more than double over the next year. This suggests that PBTS's revenue is made up of high-quality cash from PBTS's day-to-day business as opposed to one-off income. PBTS's share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if PBTS's projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the software industry, PBTS is also trading below its peers, relative to earnings generated. This supports the theory that PBTS is potentially underpriced.
PBTS's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. PBTS seems to have put its debt to good use, generating operating cash levels of 1.82x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Powerbridge Technologies, I've compiled three key aspects you should further research:
- Historical Performance: What has PBTS's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Dividend Income vs Capital Gains: Does PBTS 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 PBTS as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of PBTS? 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 email@example.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.