NIIT Limited (NSE:NIITLTD) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of NIITLTD, it is a financially-sound company with an impressive history and a buoyant growth outlook. 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 NIIT here.
Excellent balance sheet with proven track record
In the previous year, NIITLTD has ramped up its bottom line by 41%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, NIITLTD also outperformed its industry, which delivered a growth of 18%. This is an optimistic signal for the future.
NIITLTD’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 implies that NIITLTD manages its cash and cost levels well, which is a crucial insight into the health of the company. NIITLTD seems to have put its debt to good use, generating operating cash levels of 0.63x 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.
Next Steps:
For NIIT, I’ve compiled three key aspects you should further examine:
- Valuation: What is NIITLTD 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 NIITLTD is currently mispriced by the market.
- Dividend Income vs Capital Gains: Does NIITLTD 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 NIITLTD as an investment.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NIITLTD? 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.