Yahoo Finance A Look At Triad Group plc's (LON:TRD) Exceptional Fundamentals
Attractive stocks have exceptional fundamentals. In the case of Triad Group plc (LON:TRD), there's is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you're interested in understanding beyond my broad commentary, read the full report on Triad Group here.
Flawless balance sheet and undervalued
TRD's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TRD manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at TRD's capital structure, the company has no debt on its balance sheet. 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. TRD's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of TRD's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the software industry, TRD is also trading below its peers, relative to earnings generated. This bolsters the proposition that TRD's price is currently discounted.
Next Steps:
For Triad Group, I've put together three key aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for TRD’s future growth? Take a look at our free research report of analyst consensus for TRD’s outlook.
Historical Performance: What has TRD'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.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRD? 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.
