As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Team17 Group PLC (LON:TM17), it is a company with great financial health as well as a a great track record of performance. Below is a brief commentary on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on Team17 Group here.
Flawless balance sheet with outstanding track record
TM17 delivered a triple-digit bottom-line expansion over the past couple of years, with its most recent earnings level surpassing its average level over the last five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%, which is what investors like to see! TM17'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 implies that TM17 manages its cash and cost levels well, which is an important determinant of the company’s health. Investors should not worry about TM17’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.
For Team17 Group, I've compiled three pertinent factors you should further examine:
- Future Outlook: What are well-informed industry analysts predicting for TM17’s future growth? Take a look at our free research report of analyst consensus for TM17’s outlook.
- Valuation: What is TM17 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 TM17 is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TM17? 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.