Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on Talgo, S.A. ( BME:TLGO ) due to its excellent fundamentals in more than one area. TLGO is a company with impressive financial health as well as a excellent growth outlook. Below, I've touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Talgo here .
Reasonable growth potential with adequate balance sheet
Investors in search for stocks with room to flourish should look no further than TLGO, with its expected earnings growth of 23%. The optimistic bottom-line growth is supported by an outstanding revenue growth of 92% over the same time period, which indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. TLGO's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TLGO manages its cash and cost levels well, which is a crucial insight into the health of the company. TLGO seems to have put its debt to good use, generating operating cash levels of 0.66x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
For Talgo, I've put together three essential factors you should further examine:
- Historical Performance : What has TLGO'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.
- Valuation : What is TLGO 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 TLGO is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TLGO? 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 email@example.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.