These Factors Make Global Education Limited (NSE:GLOBAL) A Great Investment

Global Education Limited (NSE:GLOBAL) 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 GLOBAL, it is a financially-healthy company with a a strong history of performance, trading at a discount. 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 Global Education here.

Flawless balance sheet and good value

GLOBAL delivered a satisfying double-digit returns of 27.52% in the most recent year Not surprisingly, GLOBAL outperformed its industry which returned 3.59%, giving us more conviction of the company’s capacity to drive bottom-line growth going forward. GLOBAL’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 an important determinant of the company’s health. Investors should not worry about GLOBAL’s debt levels because the company has none! It has only utilized funding from its equity capital to run the business, which is typically normal for a small-cap company. GLOBAL 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.

NSEI:GLOBAL Income Statement June 18th 18
NSEI:GLOBAL Income Statement June 18th 18

GLOBAL’s shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. Investors have the opportunity to buy into the stock to reap capital gains, if GLOBAL’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Compared to the rest of the consumer services industry, GLOBAL is also trading below its peers, relative to earnings generated. This supports the theory that GLOBAL is potentially underpriced.

NSEI:GLOBAL PE PEG Gauge June 18th 18
NSEI:GLOBAL PE PEG Gauge June 18th 18

Next Steps:

For Global Education, there are three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for GLOBAL’s future growth? Take a look at our free research report of analyst consensus for GLOBAL’s outlook.
  2. Dividend Income vs Capital Gains: Does GLOBAL return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from GLOBAL as an investment.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GLOBAL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!