Yahoo Finance These Fundamentals Make ZEAL Network SE (ETR:TIM) Truly Worth Looking At
ZEAL Network SE (ETR:TIM) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of TIM, it is a financially-sound company with a a great track record of performance, trading at a discount. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, read the full report on ZEAL Network here.
Outstanding track record with flawless balance sheet and pays a dividend
Over the past year, TIM has grown its earnings by 48%, with its most recent figure exceeding its annual average over the past five years. This illustrates a strong track record, leading to a satisfying return on equity of 23%. which is what investors like to see! TIM is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that TIM has sufficient cash flows and proper cash management in place, which is a crucial insight into the health of the company. Looking at TIM’s capital structure, the company has no debt on its balance sheet. It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.
TIM’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if TIM’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the hospitality industry, TIM is also trading below its peers, relative to earnings generated. This bolsters the proposition that TIM’s price is currently discounted.
Next Steps:
For ZEAL Network, I’ve compiled three key aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for TIM’s future growth? Take a look at our free research report of analyst consensus for TIM’s outlook.
Dividend Income vs Capital Gains: Does TIM 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 TIM as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TIM? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
