As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Trulieve Cannabis Corp. (CNSX:TRUL), it is a company with impressive financial health as well as a buoyant 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, take a look at the report on Trulieve Cannabis here.
High growth potential with excellent balance sheet
Investors in search for stocks with room to flourish should look no further than TRUL, with its expected earnings growth of 45%. Earnings growth is paired with an eye-catching top-line trajectory also doubling over the same period, which indicates a high-quality bottom-line expansion, as opposed to those driven by unsustainable cost-cutting activities. TRUL’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TRUL manages its cash and cost levels well, which is a crucial insight into the health of the company. TRUL’s has produced operating cash levels of 0.95x total debt over the past year, which implies that TRUL’s management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
Next Steps:
For Trulieve Cannabis, I’ve put together three relevant aspects you should further examine:
- Historical Performance: What has TRUL’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 TRUL 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 TRUL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TRUL? 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.