Spotlight On Xpediator Plc’s (LON:XPD) Fundamentals

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Xpediator Plc (LON:XPD) due to its excellent fundamentals in more than one area. XPD is a company with impressive financial health as well as a excellent future outlook. 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 Xpediator here.

Excellent balance sheet with reasonable growth potential

Investors in search of impressive top-line expansion should look no further than XPD, with its expected 55.70% revenue growth in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that revenue is driven by high-quality cash from XPD’s day-to-day business as opposed to one-off income. XPD’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 indicates that XPD has sufficient cash flows and proper cash management in place, which is an important determinant of the company’s health. XPD’s has produced operating cash levels of 0.28x total debt over the past year, which implies that XPD’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

AIM:XPD Future Profit June 22nd 18

Next Steps:

For Xpediator, I’ve compiled three important factors you should further examine:

1. Historical Performance: What has XPD’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.

2. Valuation: What is XPD 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 XPD is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of XPD? 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 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.