Yahoo Finance Why Financial Engines Inc (NASDAQ:FNGN) Should Be Your Next Investment
Financial Engines Inc (NASDAQ:FNGN) 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 FNGN, it is a company with great financial health as well as a an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digger a bit deeper into my commentary, read the full report on Financial Engines here.
Flawless balance sheet with proven track record
Over the past year, FNGN has grown its earnings by 36.16%, with its most recent figure exceeding its annual average over the past five years. In addition to beating its historical values, FNGN also outperformed its industry, which delivered a growth of 14.43%. This is an optimistic signal for the future. FNGN’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 suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. Investors should not worry about FNGN’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is rather impressive for a US$2.86B market cap company. FNGN has plenty of financial flexibility, without debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.
Next Steps:
For Financial Engines, there are three relevant aspects you should further research:
Future Outlook: What are well-informed industry analysts predicting for FNGN’s future growth? Take a look at our free research report of analyst consensus for FNGN’s outlook.
Valuation: What is FNGN 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 FNGN is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of FNGN? 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.
