Should You Buy Tristel Plc (LON:TSTL) Based On These Aspects?

Tristel Plc (LON:TSTL) 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 TSTL, it is a company with great financial health as well as a an impressive track record of performance. In the following section, I expand a bit more 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 Tristel here.

Flawless balance sheet with proven track record

TSTL delivered a satisfying double-digit returns of 21.26% in the most recent year Unsurprisingly, TSTL surpassed the Medical Equipment industry return of 10.23%, which gives us more confidence of the company's capacity to drive earnings going forward. TSTL's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that TSTL manages its cash and cost levels well, which is an important determinant of the company’s health. Looking at TSTL's capital structure, the company has no debt on its balance sheet. This means it is running its business only on equity capital funding, which is typically normal for a small-cap company. Investors’ risk associated with debt is virtually non-existent and the company has plenty of headroom to grow debt in the future, should the need arise.

Next Steps:

For Tristel, there are three fundamental factors you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for TSTL’s future growth? Take a look at our free research report of analyst consensus for TSTL’s outlook.
2. Valuation: What is TSTL 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 TSTL is currently mispriced by the market.
3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of TSTL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Simply Wall St analyst Simply Wall St and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.