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Is Ten Lifestyle Group plc (LON:TENG) Potentially Underrated?

I’ve been keeping an eye on Ten Lifestyle Group plc (LON:TENG) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe TENG has a lot to offer. Basically, it is a company with strong financial health as well as an optimistic future outlook. Below is a brief commentary on these key aspects. For those interested in digger a bit deeper into my commentary, take a look at the report on Ten Lifestyle Group here.

Exceptional growth potential with excellent balance sheet

Investors in search of impressive top-line expansion should look no further than TENG, with its expected revenue growth to more than double in the upcoming year. This is expected to flow down into an impressive return on equity of 23.3% over the next couple of years. TENG’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. TENG’s has produced operating cash levels of 0.4x total debt over the past year, which implies that TENG’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.

AIM:TENG Future Profit October 1st 18
AIM:TENG Future Profit October 1st 18

Next Steps:

For Ten Lifestyle Group, there are three relevant factors you should look at:

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  1. Historical Performance: What has TENG’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 TENG 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 TENG is currently mispriced by the market.

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